Asian Activities Report for May 16, 2011: Ausgold Limited (ASX:AUC) Confirm Prospectivity Of Katanning Gold Discovery In Western Australia

Sydney, May 16, 2011 AEST (ABN Newswire) - Major Asian markets opened in red today. Australian stocks slumped in early trade. The benchmark S&P/ASX200 was 1.4% lower to 4646.2, while the broader All Ordinaries index was 1.3% lower to 4724.8. NIKKEI 225 was down 0.63% to 9,587.85. Hang Seng Index was down 0.76% to 23099.03 and the Shanghai Composite fell 0.09% to 2868.34.

Companies

Ausgold Limited (ASX:AUC) said today that the ongoing drilling program has confirmed that the grade and width of the Company's Katanning Gold Discovery in Western Australia is similar to the Boddington Gold Mine, one of Australia's biggest gold mine. Ausgold will commence a major exploration programme to be completed by December 2011 with over 100,000 metres of drilling to expand the existing resource.

Erongo Energy Limited (ASX:ERN) has confirmed the prospectivity of a main target area within the Maniema Gold and Tin Project in Congo. Significant anomaly has been identified with strike of more than 1km and widths in excess of 80m. The Company will further test this highly-prospective target in June 2011.

Oil and gas producer Nido Petroleum Limited (ASX:NDO) said that a deepwater drilling rig is due to arrive shortly at the Gindara-1 prospect in the Philippines and the spudding is anticipated on 21 May 2011. Gindara-1 is the first well to be drilled in the block and will be drilled to a total vertical depth of 3,650 meters.

Sultan Corporation Limited (ASX:SSC) has commenced a Bankable Feasibility Study on the MB zinc/lead Project in Montenegro to confirm the robust nature of this project. The Project has a maiden JORC resource of 9,179,975 tonnes grading 3.77% Zn, 1.21% Pb and 0.36% Cu. The Project is expected to help the Company join the ranks of mid level, base metal producers.

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