25 March 2008

ASX Announcement

SIGNIFICANT HIGH GRADE DRILL INTERSECTIONS AT BLAIR

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.

The first hole in this program AMUG293, has intersected E03C shoot at the340mRL (30m below the current deepest workings.) returning a downhole intersection of:-

  • 11.85m @ 4.06 % Ni.

The intersection consists of strong matrix sulphides and massive sulphides and is typical of mineralisation at the western end of the shoot where disseminated and massive sulphides balloon out against an in-thrust tongue of footwall basalt.

True width is expected to be 5 to 5.5m.

In addition AMUG293 intersected the L03C shoot returning a down hole intersection of:-

  • 5.4m @ 3.32% Ni

Drilling to extend the E03 shoot is continuing. The Blair Deeps resource drilling program will further target extensions to the high grade shoots.

For further information contact:
Brett Young
Chief Operating Officer
Australian Mines Limited
Tel: 08 9481 5811

For media enquiries contact:
Robert Williams
Farrington National
Tel: 02 9332 4448

Blair Mine Cross Section highlighting new drilling results marked in yellow and previous drilling results.
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