COMPANY BACKGROUND
The company listed on the ASX in September 2001 (as West Musgrave Mining Ltd), via a prospectus, with a geographic focus on projects in the West Musgrave region of Western Australia located 1,300 km north east of Perth.
In March 2003 the company announced the expansion of its activities into the Eastern Goldfields of Western Australia with the acquisition of the Blair nickel sulphide mine, located 35 km south east of Kalgoorlie in the heart of Western Australia's prime nickel and gold province. This was closely followed in May 2003 with the acquisition of a 95 km2 package of highly prospective tenements surrounding the Blair Mine. A new shallow ore shoot (Area 57) was subsequently delineated by diamond drilling close to the existing underground Blair decline and development of this orebody commenced in December 2003. As ore was mined from Area 57 the main decline was extended and mining of the main Blair Shoots was recommenced in October 2005.
In 2005 the company acquired a group of tenements at Duplex Hill South and discovered the Woodline 1 gold deposit in 2006. In 2009, with the Company in need of funds, the Woodline 1 gold deposit was sold to a Kalgoorlie syndicate and subsequently mined an open pit to a depth of 31 metres. The company hasrecommenced gold exploration in the region surrounding the woodline mine.
In 2006 the company acquired the Marriott's Nickel Sulphide Project from BHP Billiton along with an agreement to toll treat the ore at the nearby Leinster Mill. An Indicated and Inferred Mineral Resource of 9,400 tonnes of contained nickel metal has been reported at Marriott's.
In 2006 the Golden Ridge Joint Venture (GRJV) was formed with Pioneer Nickel (PIO) to accelerate nickel exploration on the Company's tenements around the Blair Mine.
In 2007 the company acquired the lease to 'East Location 45' which contains 86km2 of prime exploration ground including the Goodyear Nickel Project with an Interred Mineral Resource of 14,700 tonnes of contained nickel and the Mt Martin Gold Project with an Indicated Mineral Resource of 200,000 ounces of gold.
In December 2008 Australian Mines Limited suspended operations at Blair Mine due to a low nickel price, after producing 230,676 tonnes of ore at an average grade of 3.02% nickel for 6,958 nickel tonnes, and all of the underground mining equipment was sold.
The company continues to explore for gold in Western Australia and has plans to increase the Indicated Resource of 200,000 ounces gold at Mt Martin by drilling below the current workings and along strike, and is optimistic of re-establishing a mining operation at Mt Martin.
The company will continue to explore for nickel sulphides in Western Australia and all of the nickel projects are retained for the future.
BOARD & EXECUTIVES
The company has attracted a strong, committed team of experienced professionals to oversee the attainment of the company's principal goal of the discovery and development of profitable mining operations for the benefit of its shareholders. There is a balanced skill set within the Board which mainly comprises non-executive Directors.
The company's exploration team comprises well-focused and experienced geoscientists with an excellent track record, managed by Ernie Poole.
