Impressive drilling results ahead of revised resource estimates

Australian Mines (ASX: AUZ) is pleased to announce significant exploration success from the Marriott’s nickel project and the Blair nickel mine operation in Western Australia.

Resource definition surface diamond drilling at the Marriott’s nickel project, 65 km from Leinster is progressing steadily. Samples from 25 holes of the 29 hole programme have now been dispatched to the laboratory.

Results from 5 of the diamond holes have been returned. The assay results from the latest 2 holes not previously released indicate very promising higher grade nickel mineralisation than the initial Inferred Resource grade of 1.4% Ni:

• AMMD 021:    10m @ 1.29% Ni  from 97m downhole.

• AMMD 022:    15m @ 2.18% Ni from 125m downhole

                              (including 3m @ 3.89%Ni and 3m @ 4.34%Ni)

Australian Mines’ Chief Operating Officer, Mr Brett Young said, “The length and grade of the reported intercepts at Marriott’s are very encouraging and highlights the higher grade potential of the deposit below 100m. The company is planning to complete a feasibility study once all the drill results have been modelled.

“Given the recent assay results, we anticipate increasing Marriott’s resource base above its current estimate of 550,000t at 1.4% Ni for 7,700 tonnes contained nickel and upgrade a proportion to Indicated status.

“A revised resource estimate is anticipated to be announced within the September quarter.”

The company has also received significant assay results for the deep drilling at Blair Nickel mine which targeted the main CO1 and EO3 shoots up to 100 metres below the current workings.

A diamond hole targeting C01C shoot at the 300m RL (100 metres below the current workings) has returned the following high grade down hole intercepts:

·         AMUG 254:    5.3m @ 5.65% Ni from 326 m RL

                       10.5m @ 3.89 % Ni from 310 m Rl

(includes 6.9m @ 5.17% Ni)

Although these results are not true widths, they support the high grade and continuous ore trend seen in previously reported holes.

Current drill hole AMUG238 targeting E03C shoot at 300mRL has intersected approximately 5.6 metres of mixed massive and matrix mineralisation from 313 to 307mRL (100 metres below the current E03C workings). Assay results are awaited.

Diamond holes have also intersected the L03C shoot with encouraging downhole intersections:

• AMUG 253 :   6.2m @ 5.10% Ni from 380m RL
• AMUG 230 :   3.8m @ 3.20% Ni from 370m RL

These results are exciting as they may indicate an upgrading of the L03 Shoot at depth.

Diamond holes have also intersected the N03C shoot with encouraging downhole intersections:

• AMUG 253 :   3.3m @ 2.42% Ni from 380m RL
• AMUG 230 :   3.0m @ 1.92% Ni from 370m RL

“We are very excited about the continuity of the Blair nickel mine shoots at depth and the potential to extend the mine life well into the future. Decline development to access these resources with our capital mobile fleet is continuing unabated,” Mr Young added.