15 June 2006

Massive Sulphide Nickel Intersection at Blair Mine

Australian Mines (ASX: AUZ) is pleased to announce that resources definition drilling below current workings at Blair nickel mine has intersected 8.5m (downhole) of massive nickel sulphides.

Although assays are not yet available, the intersection on the CO1 lode at the 395mRL indicates that the continuous sub vertical nickel shoot structure at Blair may be flattening with possible increased contained nickel tonnes per vertical metre.
Further drilling is currently in progress to confirm the new interpretation.

Commenting on the drilling, Australian Mines’ Chief Operating Officer Brett Young said that “if further drilling results on the CO1 lode proved successful, the main Blair decline would be extended to access these additional resources. Obviously with more nickel tonnes per vertical metre, the economics of the project are greatly enhanced”.

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

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.’
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