Diamond drilling commences at Mandiodo

  Stonehenge Metals has commenced diamond drilling at its Mandiodo nickel project in South East Sulawesi, Indonesia.There are currently two diamond rigs are on site at Mandiodo drilling a series of holes that twin or duplicate existing drill holes. According to Stonehenge, the 45 duplicate holes are designed to confirm the validity of the existing drilling and allow a JORC-compliant resource to be calculated. To date, two holes have been completed and Stonehenge said drilling is expected to take two months. The Mandiodo nickel laterite project was extensively drilled during the 1990s and early 2000s. Drilling identified nickel laterite mineralisation over an initial area 4.2km long by 1km wide, with an average thickness of 13m. The previous mineralised drill hole intersections had average grades of 1.3% nickel. Stonehenge said a review of the project by geological consultants indicated that the deposit required approximately 40 additional drill holes to validate the existing information and allow a JORC-compliant resource to be calculated. Given the extensive historical drilling, Stonehenge has a modest initial exploration target for the deposit of 40-60 Mt @ 1.2 to 1.4% nickel, based on the grades, widths and extents of the existing drilling results.