19 April 2006
Company Announcements Office
Australian Stock Exchange Limited
10th Floor
20 Bond Street
SYDNEY NSW 2000
Dear Sir
RAB Drilling on Gold Geochemical Targets at Duplex Hill South Prospect
Australian Mines is pleased to announce the commencement of a new programme of RAB drilling at Duplex Hill South, located 30 km South East of Kalgoorlie and 7 km from the company’s Blair underground nickel mine.
The new programme follows a successful RAB programme in February 2006 which confirmed strong and shallow gold mineralisation including intercepts of 9m @ 3.8g/t, 7m @ 4.7g/t, 5m @ 2.6g/t and 13m @ 1.2g/t. The new 2,000 metres RAB drilling programme will target other gold geochemical anomalies which are clustered around the Woodline 1 Deposit.
Remodelling of the Woodline 1 Deposit has commenced in preparation for open pit optimisation studies in June Quarter 2006. RAB drilling of the cluster of outstanding geochemical anomalies around Woodline 1 will determine the highest priority targets, and follow up RC resource definition drilling will commence in June Quarter, 2006.
Yours faithfully,
Brett Young,
Chief Operating Officer
AUSTRALIAN MINES LIMITED
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.