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Welcome To The Australian Investor

ASX Midday Market Wrap – 2nd September 2010 – Market Clings To Gains

In early afternoon trade, shares were just managing to maintain earlier gains, after losing some of their advances with all four major banks declining into the red.

Around 12pm AEST, the benchmark S&P/ASX200 index added 8.6 points, or 0.2 per cent, at 4541.3, while the broader All Ordinaries index gained 17.3 points, or 0.4 per cent, to 4580.3.



Despite being up at 4558.7 early in the session, its best level since August 10, the S&P/ASX200 pared gains a little as global market await further US economic news due late tomorrow.

Local investors are not likely to make much movement before the release of the US non-farm payrolls data which is due later today, and said to be a key indicator on whether the world's largest economic recovery is speeding up or slowing down.



In company news, Magma Metals Limited has advised that further exploration drilling and geophysical surveys at its Thunder Bay North Pt-Pd-Cu-Ni project in Ontario have defined two high-potential exploration targets – the West Beaver Lake High Sulphide Target and the South East Anomaly Gravity Target – which will be drilled over the next three months.

Magma recently completed a program of drilling in the Bridge and Beaver Lake Zones in the Current Lake Intrusive Complex, which tested 13 down-hole electro-magnetic (DHEM) targets with a single hole into each. The DHEM anomalies were interpreted to reflect potential high-sulphide zones containing heavily disseminated, semi-massive or massive sulphides.

A surface gravity survey was also completed recently in the magnetic South East Anomaly. The survey mapped a prominent gravity anomaly indicating the presence of a dense body located in the northern part of the magnetic anomaly. The offset between the centres of the gravity and magnetic anomalies was unexpected and indicates they are likely due to different sources.

A substantial exploration program has been budgeted for the 2010-2011 financial year, including provision for 40,000m of diamond drilling and a significant geophysical program. Much of the drilling is planned for the winter (March quarter, 2011), when the ground is frozen and many of the targets, which are in swampy ground or in and around lakes or watercourses, are accessible. The two targets described above are accessible now and will be drilled over the next three months.



Haoma Mining NL has announced that during July and August bulk ore tests continued at the Bamboo Creek Plant facilities using the Refined Elazac Extraction Method and the Refined Elazac Assay Method on samples of Bamboo Creek Tailings and Tailings Concentrates.

The latest results significantly up-grade previous Bamboo Creek test results which showed that conventional assays did not accurately measure
the amounts of gold and silver that can be extracted from Bamboo Creek ores.

Three independent trials on Bamboo Creek Tailings (samples 50g, 50g and 400g) using the Refined Elazac Extraction Method have just been completed in Melbourne at an Independent Facility to test recoveries of gold and silver from the samples tested. Assays from these three trials
at the Independent Facility used the Refined Elazac Assay Method and check assays were carried out at the Bamboo Creek Laboratory.

The latest Elazac results showed that the measured gold and silver grades can now be recovered into gold and silver bullion. Residues from using the Elazac Process may contain some additional gold, silver and other metals which can be recovered with additional
processing.

A Pilot Plant using the Refined Elazac Extraction Method is at present being installed at Bamboo Creek. The initial throughput capacity of the Pilot Plant will be about one tonne per day of Bamboo Creek Tailings Concentrates.

In mid-October parcels of Bamboo Creek Tailings Concentrates will be processed by the Bamboo Creek Pilot Plant. Conventional assays of Bamboo Creek Tailings Concentrates are 0.84 g/t gold and 15.50 g/t silver.



St Barbara Limited has announced its Definitive Mine Study for the King of the Hills gold project at Leonora, Western Australia, has confirmed the viability of the project, further reduced the project risk profile and underpinned an extension to the life of the project.

Site pre-production works have commenced and first gold production is due on schedule in June 2011.

The Tarmoola processing plant (on care and maintenance since 2004) has been sold for $3 million in cash, following the removal of the Tarmoola open pit resources from the Company’s Resource inventory.

The Life of Mine, based on an expected mining inventory of 260,0001 ounces of gold, is now approximately 5.5 years, with potential for further extension.

The Net Present Value of the project has marginally improved. An overall net increase in capital costs of $5.2 million is offset by the benefit of increased gold production. The average total cost over the current life of mine remains relatively unchanged at $1,020 - $1,050 per ounce of gold.

The AUD gold price risk has been mitigated with a zero cost collar structure for 250,000 ounces of gold with a minimum price of $1,425 per ounce and a cap of $1,615 per ounce of gold over a 5 year period.



At 1200 AEST the 12 GICS indices were:-

Discretion 1,524.0 down 3.6

Consumer Staples 8,131.6 up 13.9

Energy 14,970.8 down 0.1

Financials 4,364.6 down 20.4

Fin-x-property 5,002.2 down 29.4

Gold 7,305.5 up 258.6

Health 8,302.5 up 14.5

Industrials 3,601.8 up 45.0

Info Technology 590.7 down 2.2

Materials 12,146.5 up 66.5

Metals and Mining 4,348.3 up 32.4

Resources 5,135.6 up 27.1

Telecommunications 967.1 down 0.2

Utilities 4,375.6 up 62.6

Individual stock performances

BHP Billiton was at $38.46 up 14 cents. Rio Tinto was at $73.55 up 43 cents.

Banks

Westpac was at $22.45 down 20 cents. NAB was at $24.02 down 9 cents. ANZ was at $23.26 down 17 cents. Commonwealth Bank was at $51.48 down 44 cents.

Media

News Corp was at $16.21 up 7 cents. John Fairfax was at $1.495 down 0.5 cents.

Retail

Woolworths was at $28.37 down 10 cents. Harvey Norman was at $3.56 up 8 cents. David Jones was at $5.15 unmoved.

Toll Holdings was at $6.30 up 12 cents. Qantas was at $2.55 up 2 cents.

Gold

Gold was down in early afternoon trade, falling $US1.70 an ounce to sit at $US1251.70.

Oil

Oil fell to $US74.80, a loss of $US0.26 a barrel.

Dollar

At 1200 AEST the Australia dollar was:

AUD/USD 0.90862

AUD/EUR 0.70848

AUD/GBP 0.58938

AUD/JPY 76.6367

AUD/NZD 1.27170

US Stock Market Report – 3rd September 2010 – Stocks Sneak Up Ahead Of Jobs News

Stocks managed to make small advances after a quiet session overnight, as investors waited for the release of a key U.S. job report tomorrow.

The Dow Jones industrial average (INDU) was up 50 points, or 0.5%. The S&P 500 (SPX) added 9 points, or 0.9%, and the Nasdaq (COMP) composite gained 23 points, or 1%.

News of better-than-expected sales from major U.S. retailers and a rise in pending home sales lifted the market. But there was little movement as investors stuck to the sidelines following yesterday's surge and tomorrow's government's monthly jobs data.

In economic news, a number of retailers announced stronger than anticipated August same-store sales, due mostly to back-to-school deals and tax holidays. Same-store sales, an important indicator of a retailer's performance, measure sales at stores open at least a year.

According to tracker Thomson Reuters, 65% of the retailers in its index, that have reported sales so far, have exceeded forecasts.

Shares of the big retailers were up early in the session. JC Penny (JCP, Fortune 500), Macy's (M, Fortune 500) and Nordstrom (JWN, Fortune 500) were the biggest advancers.

In company news, Mariner Energy (ME) experienced a fire on an oil and gas production platform the company owns in the Gulf of Mexico and following the accident shares slipped 2.5%.

Mariner announced all 13 people onboard the Vermilion 380 are safe. They are now looking into the causes of the fire. The company said an initial flyover found no sign that oil or gas had spilt as a result of the fire.

For the week ending 28 August, weekly jobless claim figures dropped slightly, by 6,000 claims, to 472,000.

The number of Americans filing new claims for unemployment insurance is expected to have climbed up last week to 475,000, according to economists.

National Association of Realtors announced that pending home sales -- a forward looking gauge -- increased 5.2% in July. But the index, which is based on sales contracts signed in the month, was 19% less than from the year before.

The rising housing figures helped lift shares of homebuilders including Hovnanian (HOV), PulteGroup (PHM) and D.R. Horton. (DHI)

The U.S. dollar was down versus the euro and the Japanese yen, but up against the British pound.

Oil futures for October delivery gained $1.03 to $74.94 a barrel.

Gold for December delivery climbed $5.30 to $1,253.40 an ounce.

One Australian dollar currently buys:

AUD/USD 0.90986

AUD/EUR 0.70935

AUD /GBP 0.59083

AUD/JPY 76.6491

AUD/NZD 1.27409

In overseas trade, the CAC 40 in France added 0.2%, while Britain's FTSE 100 and the DAX in Germany were mostly flat.
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Market News

[MMW] High potential exploration targets
03-Sep-2010

[HAO] Significant Bamboo Creek results
03-Sep-2010

[SBM] Final Study confirms project viability
03-Sep-2010

[MCL] Major milestone on methodology for forest carbon credits
02-Sep-2010

[SMR] Initial JORC Inferred Resource of 99Mt at Mackenzie River
02-Sep-2010

[FIS] High grade nickel in third hole at Mt Thirsty
02-Sep-2010

[PRE] Continued exploration success at Redcliffe Gold Project
02-Sep-2010

[SYP] Style signs Cooperative Manufacturing Agreement with QiChen
02-Sep-2010

[ATJ] Major breakthrough in Supercharger manufacturing process
02-Sep-2010

[TRH] Haemetite targets defined at Johnston Range Project
02-Sep-2010

[AJM] Maiden Ore Reserve at Mt Webber
02-Sep-2010

[SRR] Baramine delivers further manganese discoveries
02-Sep-2010

[TIS] Exceptional VitroGro clinical results continue
02-Sep-2010

[DRA] Promising drill results
02-Sep-2010

[GRY] Gryphon Minerals announces 1.5 Million oz gold resource
01-Sep-2010

[AMX] Best gold intercepts to date
01-Sep-2010

[BDR] Further high grade drill results - Tucano Gold Project
01-Sep-2010

[AQD] Further encouragement in Burkina Faso
01-Sep-2010

[CAY] RC drilling at the Cue Project returns positive gold intercepts
01-Sep-2010

[BUR] Activity update - three discoveries.
01-Sep-2010

[QRX] Interim analysis of final pivotal phase 3 study MoxDuoIR
01-Sep-2010

[HTX] South Korea OvPlex study commences for KFDA approvals
01-Sep-2010

[APN] NZ Magazines expands portfolio
01-Sep-2010

[DVN] New residential land project at Bacchus Marsh in Victoria
01-Sep-2010

[LWB] LWB explores alternatives to meet growth needs
01-Sep-2010

[MBA] Mobile applications global sales surpass 750,000 downloads
01-Sep-2010

[MGK] Sampling confirms gold and copper anomalies
01-Sep-2010

[AZM] More gold discovered between key deposits
01-Sep-2010

[AGO] 50% increase in Reserves
01-Sep-2010

[NIP] Lead sample assaying 11.1% Pb found
01-Sep-2010

[ABU] Reconnaissance extends zone of high grade veins
31-Aug-2010

[SBR] Site preparation and water bore drilling already underway
31-Aug-2010

[SRL] Improved performance from ongoing operations
31-Aug-2010

[ALY] Drilling identifies Cu-Ni base metal mineralisation at edge of Hermes
31-Aug-2010

[GDO] Gross profit of A$17.1 million for six months to 30 June 2010
31-Aug-2010

[GMR] Significant gold results over 9km at Sebba in Burkina Faso
31-Aug-2010

[DRM] Diamond drilling increases Wilber Lode depth by over 50%
31-Aug-2010

[BDR] Exceptional test results
31-Aug-2010

[EXS] High grade intersections demonstrate potential
31-Aug-2010

[CTM] Centaurus delivers 39MT iron ore resource at Passabem
31-Aug-2010

[PNX] Copper production commenced
31-Aug-2010

[SLR] Strong results support Murchison strategy
31-Aug-2010

[PAX] Substantial progress on Sokoria Project
31-Aug-2010

[AQR] Hole 129D reveals higher grade copper intercepts
31-Aug-2010

[SHC] First minimally invasive thoracotomy procedures performed
31-Aug-2010

[PNN] Drilling commences for high grade Au and Cu targets QLD
31-Aug-2010

[RSG] More high grade at Welcome Breccia
31-Aug-2010

[AFR] Drilling extends uranium mineralisation at Chisebuka, Zambia
31-Aug-2010

[CDU] High grade results for Wilgar Prospect
30-Aug-2010

[MYG] Mutiny Gold Ltd progressing Gullewa Gold Project acquisition
30-Aug-2010

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