blair nickel mine diamond drilling update

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LEVEL 1, 681 MURRAY STREET, WEST PERTH, 6005
(PO BOX 883, West Perth, WA 6872)
Tel: (08) 9481 5811 Fax: (08) 9481 5611
Email: [email protected]
23 April 2007
ASX Announcement
BLAIR NICKEL MINE DIAMOND DRILLING UPDATE
Australian Mines (ASX: AUZ) is pleased to announce that recent exploration
activities at the company’s 100%-owned Blair Nickel Mine near Kalgoorlie, has
focussed on L01C Shoot and Area 57 southern extensions with the following
encouraging results:
L01C Shoot:
Recent drilling above and below 1048 level has returned ore grade intersections.
The holes were designed to establish platforms for DHEM testing of L01C Shoot and
stay in the footwall of the shoot but, due to variations in the dip of the shoot, have
intersected portions of the shoot. Because the intersections essentially follow the
interpreted dip of the shoot, true widths have not been estimated with the exception
of hole AMUG202.
1. Hole AMUG202 drilling above the 1048 level to test L01C shoot up plunge
intersected 8m @ 4.17% Ni (expected true width of 1.5-2.0m).
2. Hole AMUG203 drilled below the 1048m RL level has intersected massive
sulphides at both sediment/ultramafic and basalt/ultramafic contacts from 90 to
20 metres above the 907 production stope. (1m @ 3.5% Ni, 5m @ 2.37% Ni,
1m @ 3.91% Ni & 8.6m @ 4.05% Ni).
While the intersections are not true widths, they give the company confidence
that the L01 shoot will continue to increase the mine’s nickel resource and
further holes are planned in this zone to confirm the intersections and ore
model before drilling recommences in the Blair Deeps region of the mine in
April.
3. Hole AMUG209 drilling 50m below AMUG208 (2m @ 4.6% Ni) targeting the
depth extensions of the LO1 shoot failed to intersect significant nickel
mineralisation. DHEM is now planned to interpret the ore distribution below
AMUG208 before further drilling is planned.

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LEVEL 1, 681 MURRAY STREET, WEST PERTH, 6005
(PO BOX 883, West Perth, WA 6872)
Tel: (08) 9481 5811 Fax: (08) 9481 5611
Email: [email protected]
Area 57 Southern Extensions:
1 Drilling 20m above the 1033m RL production stope in the Area 57 extensions
has intersected nickel ore (AMUG212 intersected 0.7m @1.68 % Ni , and
0.3m @ 3.97% Ni).
Mining is continuing in this zone and further drilling is required to determine
the limits of the up dip extensions.
2. Drilling below the 1033m RL production stope indicates mineralisation is
truncated by a local fault. Further work below this zone is required to fully
understand and interpret possible repetitions of the Area 57 ore body at
depth.
Mining continues in this zone with a half level drive below the 1033mRL to
test the extensions of the ore body.
For further information contact:
Brett Young
Chief Operating Officer
Australian Mines Limited
Tel: 08 9481 5811
For media enquiries contact:
Robert Williams
Farrington National
Tel: 02 9332 4448
The information in this report that relates to Exploration Results and Mineral Resources 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.’