announcement, page-2

A1 Minerals has completed a milestone review of the potential for nickel-sulphide deposits on its extensive tenement package at Narnoo, south east of Laverton, within the Great Victoria Desert of Western Australia. The assessment highlighted the high nickel-sulphide potential on A1’s Narnoo Tenements.
The review was conducted by Dr. Jon Hronsky (Principal - Western Mining Services (Australia)), whose particular expertise in nickel sulphide deposits played an important role in the discovery of the West Musgrave and Collurabbie nickel-sulphide provinces (Western Australia). Dr. Hronsky was most recently Manager-Strategy & Generative Services for BHP Billiton Mineral Exploration, and was previously Global Geoscience Leader for WMC Resources. Dr. Hronsky concluded, “the Narnoo belt represents a very rare example within the Yilgarn craton, of a greenstone belt that has been demonstrated to contain prospective high-magnesium komatiite units but has seen no previous nickel exploration. This alone makes this belt a high-priority nickel sulphide exploration target.” In addition “Narnoo is a totally covered greenstone belt with existing geological knowledge totally derived from aeromagnetic surveying and limited previous drilling which was focused on gold”.
A1 Minerals has an estimated 60 strike-kilometres of effectively untested ultramafic-horizon at Narnoo, mostly associated with the Minigwal Lineament, interpreted as a fundamental crustal structure within this greenstone belt. This ultramafic horizon has been shown, at least locally, to be of the high-magnesium composition, a prerequisite for komatiite-hosted nickel-sulphide deposits.
Two immediate prospects have been identified at Narnoo based on anomalous nickel and copper assays from previous gold-exploration drilling conducted by WMC Resources. The main prospect is associated with a large, strong magnetic anomaly (~2.5km long and ~1.0km wide), coincident high-magnesium ultramafic rocks and an area of anomalous nickel and copper values obtained during the previous gold drilling. One hole has returned assays of 3000 ppm Ni and 305ppm Cu from the bottom of hole. Similar assay results have been achieved in the second prospect where a regional northwest trending ultramafic belt deflects to a NE trend, in response to an interpreted cross rift structure.
Mr. John Williams (Managing Director) noted: “We are very pleased with the outcome of the study. We only recently announced A1 Minerals had surpassed our resource target of one million ounces of gold in the ground. Now we can offer our shareholders an exposure to the exciting nickel market through exploration for high-value nickel sulphide deposits.
During the current quarter A1 Minerals Board of Directors plan to decide on whether this value adding will be achieved through a Joint Venture with a successful proven nickel group or through a spin off of A1’s nickel assets into a separate investment vehicle. Given the current extremely high demand worldwide for nickel sulphide deposits, the Company intends to seek globally for expressions of interest to achieve the best outcome possible for A1 Minerals’ shareholders.
Dr Hronsky’s full report can be viewed from 12 noon EST today on A1 Minerals website: