3 April 2006
Company Announcements Office
Australian Stock Exchange Limited
10th Floor
20 Bond Street
SYDNEY NSW 2000
Dear Sir
Strong Extensional Nickel Results at Blair DeepsAustralian Mines Limited (ASX: AUZ) is pleased to announce the successful results from its recent underground diamond drilling programme at Blair Nickel Mine, located 30 km South East of Kalgoorlie in West Australia.
An extensional diamond drilling programme of 5 holes was recently drilled to provide information below the deepest workings at the Blair Mine.
The results are very promising, with the 2 holes intersecting E shoot approximately at 425RL (25 metres below current workings) indicating significant nickel mineralisation continues with depth.
The results include: -
- 3.1 metres at 13.14 % Nickel from E Shoot
- 2.49 metres at 8.65 % Nickel from E Shoot
Assays are awaited from the additional 3 holes which were drilled to intersect E Shoot at 405RL (50 metres below current workings). These holes have all intersected sulphides
Tabulated below are significant intersections from the first 2 holes of the March 2006 underground diamond drilling program:
| Hole Id |
North (m) |
East (m) |
RL (m) |
Azi (deg) |
Dip (deg) |
From (m) |
To (m) |
Intersection (m) |
Grade (%Ni) |
| AMUG167 |
6578944 |
376855 |
473 |
307 |
-27 |
9.4 |
12.1 |
2.7 |
5.02 |
| |
|
|
|
|
|
43.93 |
50.1 |
5.15 |
3.28 |
| |
|
|
|
|
|
77.3 |
78.3 |
1.0 |
3.23 |
| |
|
|
|
|
|
100.7 |
103.8 |
3.1 |
13.14 |
| AMUG168 |
6578944 |
376855 |
473 |
298 |
-26 |
39.9 |
41.0 |
1.1 |
1.27 |
| |
|
|
|
|
|
103.67 |
106.16 |
2.49 |
8.65 |
| |
|
|
|
|
|
|
includes |
1.49 |
13.91 |
The March drilling programme has successfully confirmed good quality ore on the E Shoot below current workings, which supports continued decline development on the Blair Deeps. Decline development is now proposed to the 430mRL.
Two intersections of potentially economic ore were recorded in the ultramafic hangingwall in hole AMUG 167, and these will be interpreted when all of the assays from the 5 hole programme are returned.
Yours faithfully
AUSTRALIAN MINES LIMITED
Brett Young
Chief Operating Officer
The information in this report that relates to Exploration Results is based on information compiled by Mr M Elias who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Elias is employed by CSA Australia Pty Ltd and is a Non-Executive Director of AUZ. Mr Elias has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’