emu lake, page-5

JBM Acquires exploration ground near Emu Lake
21/09/04 10:40 Stephen Gorenstein

JBM; Materials; Acquires exploration ground near Emu Lake

JBM has agreed to a accept a share and option package in Pioneer Nickel Limited (PNL). JBM will pay PNL $230,000 and have agreed to spend $3m over 3 years to gain a 60% interest in the project JBM can move to 75% by spending a further $3.5m over the next three years (extendable to 4 years).

PNL owns the Acra project near JBM's EMU Lake JV which is located near Kalgoorlie WA.

Recent work on the Acra project has confirmed widespread (low grade) disseminated nickel sulphides, while work on the EMU Lake project has identified high grade massive nickel sulphides.

GSJBW View:

This is a very early stage (low entry cost) project which could in time (i.e. 5-10 years) lead to a feed source for JBM. It consolidates the land position for JBM around the EMU Lake JV which should be seen as a a positive. In effect it increases the company's exploration potential beyond the Alec Mairs' and Anomaly 1 project near Cosmos.

We highlight that as this is at the grass roots stage it is unlikely to have an meaningful impact in the short the medium term. The major near term newsflow item that we believe could impact JBM's share price is exploration outcomes from Alec Mairs. JBM is currently developing a decline to the high grade intersections at Alec Mairs. In the event that JBM can prove up some scale (tonnage) around these intersections, this would allow JBM to continue the Cosmos operation beyond FY08.