21 March 2006

ASX Announcement

    Strong Gold results from RAB drilling at Duplex Hill South

Australian Mines Limited (ASX: AUZ) is pleased to announce the results from recent RAB drilling at Duplex Hill South, which is 30 km South East of Kalgoorlie and 7 km from the company’s Blair underground nickel mine.

A reconnaissance programme of angled RAB (Rotary Air Blast) holes was drilled 400 metres north of the Woodline 1 resource, to test the northern portion of a strong gold-in-calcrete anomaly (see Figure 1).

The programme encountered strong gold mineralisation at a number of holes, with best results including:

  • 9m at 3.78 g/t Au
  • 7m at 4.73 g/t Au
  • 5m at 2.57 g/t Au
  • 1m at 6.43 g/t Au, and
  • 13m at 1.19 g/t Au

Commenting on the project, Chief Operating Officer Mr Brett Young said, “The RAB results come on the back of the successful RC drilling programme that also highlighted the strong gold mineralisation present at Woodline 1, as reported to market last Friday

“Along with the promising Woodline1 deposit, the February RAB drilling at Woodline North has greatly enhanced the potential of the Duplex Hill South area to contain more than one economic gold orebody.”

The company will interpret the RAB results and plan a follow up RC programme to better define the resource. A resource estimate is anticipated for the June 2006 quarter.

For further information contact:

Brett Young
Chief Operating Officer
Tel: 08 9481 5811


Tabulated below are significant intersections from the February RAB drilling program:
 
Hole Id North (m) East (m) Rl (m) Azi deg Dip deg From (m) To (m) Intercept (m) Grade (g/t)
AMBR440 6569280 384449 483 270 -60 18 19 1 6.46
AMBR416 6569280 384460 483 270 -60       nsa
AMBR417 6569280 384480 483 270 -60 14 20 6 0.80
AMBR418 6569280 384500 483 270 -60 8 17 9 3.78
includes           8 15 7 4.63
AMBR419 6569280 384520 483 270 -60 8 15 7 1.04
AMBR420 6569280 384540 483 270 -60 7 12 5 2.57
AMBR421 6569280 384560 483 270 -60       nsa
AMBR441 6569300 384442 483 270 -60       nsa
AMBR422 6569300 384460 483 270 -60 13 18 5 0.30
AMBR423 6569300 384480 483 270 -60 37 50 13 1.19
includes           37 42 5 1.97
AMBR424 6569300 384500 483 270 -60 13 17 4 0.36
AMBR425 6569300 384520 483 270 -60 37 42 5 0.41
AMBR426 6569300 384540 483 270 -60 8 12 4 1.03
             18 21 3 1.27
AMBR442 6569320 384444 483 270 -60 48 52 4 0.31
AMBR427 6569320 384460 483 270 -60       nsa
AMBR428 6569320 384480 483 270 -60 20 22 2 0.45
AMBR429 6569320 384500 483 270 -60       nsa
AMBR430 6569320 384520 483 270 -60       nsa
AMBR431 6569320 384540 483 270 -60       nsa
nsa - no significant assays 


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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