DEVELOPMENT PROGRAMME UPDATE AT BLAIR MINE
Australian Mines Limited (ASX: AUZ) is pleased to provide an update on the current capital development programme at the company’s Blair Nickel Mine, located near Kalgoorlie, Western Australia. As previously announced in December 2006 Quarterly, the development programme will extend the life of operations well into 2008 by accessing deeper ore reserves at the mine.
Australian Mines’ COO Mr Brett Young said, “It is a very good time to be an unhedged nickel producer, with prices hitting record highs in excess of US$39,000 per tonne of late.
Blair Deeps
Currently the Company is proceeding with developing a 5m by 5 m haulage decline below the 460mRL down to the 400mRL. Based on confirmation drilling of existing resources below the 400mRL, the decline will be extended to the 350mRL
Area 57
L01C Shoot
L shoot is emerging as a significant contributor to mine production. A combination of
surprisingly good production results, and positive drill results, has encouraged the company
to commence developing additional extraction levels on the L01 Shoot:
- Mill reconciled nickel production exceeded ore reserve depletion by 195% (mill reconciled production of 4,250 t @ 2.5% Ni versus reserve depletion of 3,151 t @ 1.8% Ni);
- As previously reported in the December Quarterly a drill result of 2m @ 4.6 % nickel in AMUG208 was recorded at approximately the 790mRL well beyond the extent of the current resource model;
- Ore on the 1048mRL level will be accessed using airleg mining technique;
- Ore at 835mRL will be accessed by 120 metres of decline development from the main haulage decline.
The importance of L shoot as an alternate working area is significant to the production of the
mine as the main decline extends further down to the 350mRL.
For further information contact:
Brett Young
Chief Operating Officer
Tel: 08 9481 5811
For media enquiries contact:
Robert Williams
Farrington National
Tel: 02 9332 4448
The information in this report that relates to Exploration Results and Mineral Resources 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.’
Australian Mines has achieved its best quarterly production result since the June 2005 quarter at the 100%-owned Blair Mine, located 32 kms from Kalgoorlie in W.A.
Australian Mines continues to intersect significant mineralisation in its 2008 resource drilling at Blair Deeps at the Blair Mine, located 32km from Kalgoorlie WA.
Australian Mines (ASX:AUZ) has recommenced 2008 resource definition drilling at Blair Deeps with drilling initially targeting the high grade E03C shoot below current workings at the Blair Nickel Mine located 32kms from Kalgoorlie.
Australian Mines is forecasting a continuation of improving production at its 100%-owned and operated Blair Nickel Mine following good progress with the development of the Blair Deeps orebody.
Australian Mines (ASX:AUZ) is pleased to announce a 25% increase in resources at its 100% owned Marriott's nickel project, following the completion of Phase 1 infill diamond drilling
Australian Mines Limited (ASX: AUZ) is pleased to announce another impressive high grade intercept from resource definition diamond drilling at the Marriott's nickel project, which is 65 km from Leinster in W.A.