Ferret's Stock to Watch: JUBILEE MINES NL08:57, Friday, 20 April...

Ferret's Stock to Watch: JUBILEE MINES NL
08:57, Friday, 20 April 2007

NICKEL EXPLORER FINDS ANOTHER BIG ONE IN THE WA PROVINCE

Sydney - Friday - April 20: (RWE Aust Business News
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OVERVIEW
********

Jubilee Mines NL's (ASX:JBM) outstanding track record of
exploration and growth has continued with the announcement this week of
the discovery of a new zone of massive and massive stringer nickel
sulphides at the company's 100 per cent-owned Bannockburn project.

It is located near Leonora in the eastern goldfields of Western
Australia, about 100 kilometres south of the highly successful Cosmos
nickel operations.

The company holds majority interests in quality exploration
projects that lie within one of the great nickel provinces in the world.

The key project areas are:

* The Cosmos region located in the world-class Agnew-Wiluna
Greenstone Belt;

* The Acra-Emu Lake area, located 70 kilometres northeast of
Kalgoorlie; and

* The Bannockburn region, located approximately 90 kilometres
south of Cosmos.

These projects present excellent opportunities for the discovery
of additional reserves and resource (near mine) and the discovery and
development of new stand-alone mining projects.

Of great importance is the fact that recent exploration success
at Cosmos has demonstrated that the Cosmos Ultramafic Belt is developing
into a typical nickel camp where multiple deposits are clustered into a
relatively small area and that the potential for ongoing exploration
success is considered excellent.

Consistent with this is the company's strategic decision to
strongly support funding the exploration effort and to pursue growth via
exploration.

The Ferret visited one of Jubilee's mines back in November and
drew investors attention to the company when the shares were trading at
$13.35. Yesterday Jubilee shares changed hands at $17.25.

This new discovery, named the Skye prospect, is located about 700
metres south of the Sinclair deposit (1,214,670 tonnes @ 2.77pc Ni for
33,697 tonnes of contained nickel metal) and lies 400 metres directly
beneath the near surface Stirling prospect (formerly Cody Well South),
where the best previously reported intersection is 13 metres @ 3.97pc Ni
in CWRC014.

Diamond drilling to date remains very wide spaced, with
mineralisation intersected in five holes.

Significant intersections are:

* CWD091 - 2.69 metres @ 3.88pc Ni (includes 1.15 metres @
5.74pc Ni);

* CWD328 - 4.05 metres zone of massive, matrix and disseminated
nickel sulphide mineralisation (assays pending);

* CWD005 - 1.07 metres @ 2.82pc Ni (including 0.46 metres @ 4.2pc
Ni);

* CWD007 - 1.30 metres @ 1.3pc Ni; and

* CWD011 - 0.35 metres @ 4.14pc Ni.

The nickel sulphide mineralisation has been intersected on a
basal contact between the ultramafic rocks and the underlying footwall
basalt rocks.

The contact is interpreted to be part of a large scale, north
plunging synformal fold structure, with mineralisation occurring on
both limbs and in the "keel" or base of the syncline.

This keel position is analogous to the position that hosts the
Sinclair deposit, but is interpreted to be of a much larger scale.

At the Sinclair deposit,diamond drilling about 300 metres north
of the current resource boundary at Sinclair has successfully intersected
the mineralised corridor.

Results to date include:

* CWD165A - 4.63 metres @ 2.43pc Ni;

* CWD165B - 13.6 metres zone of disseminated nickel sulphide
mineralisation (assays pending) - 0.98 metres zone of matrix nickel
sulphide mineralisation (assays pending);

* CWD312 - 0.74 metres zone of matrix and disseminated nickel
sulphide mineralisation (assays pending).

* CWD314B - 0.30 metres zone of stringers in basalt
mineralisation (assays pending) - 0.30 metres zone of massive nickel
sulphide mineralisation in basalt (assays pending).

These drill intersections and the associated DHEM results
confirm that the Sinclair deposit remains open to the north, and that
the resource is likely to grow further with additional in-fill
drilling.

SHARE PRICE MOVEMENT
********************

Shares of Jubilee yesterday fell 50c to $17.25 after profit
taking from $18.01 on the news of the latest discovery. Rolling high for
the year is $18.26 and low $6.25. Dividend is 57c to yield 3.3 per
cent. EPS is 145.4c and price/earnings ratio is 11.86.

Analysts describe the emergence of Jubilee Mines as one of the
most outstanding success stories of the Australian mining industry.

In the beginning the company was a goldminer but in 1997 it
made a fortuitious decision to get into other metals and decided that
nickel was the way to go in a prospective nickel belt where Kambalda
first made its mark.

Jubilee's first mine, which is 100 per cent owned, made some new
surprising discoveries not previously known in the Cosmos area.

They were high-grade nickel deposits which led to even more
discoveries in the area over about six years.

At Jubilee's 19th annual general meeting, Chairman Kerry
Harmanis reminded shareholders that for the year to June 30 the
company produced an after-tax record profit of $103 million on the back
of solid production and peak nickel prices.

This was after taking account of impairment expenses of $30
million, mainly write offs for exploration.

BACKGROUND
**********

Jubilee Mines NL is a mining and exploration company with a
primary focus on high grade nickel sulphides.

Jubilee owns and operates the Cosmos nickel project in the
northeastern goldfields of Western Australia.

Over the past five and a half years to June 30 Jubilee has
generated gross sales revenue of over $1.165 billion and net profits
of $369 million, representing total earnings per share of $2.95 per
share.

Jubilee is committed to providing returns to its shareholders,
from these substantial earnings, $1.73 per share has been returned to
shareholders by way of dividends representing an average dividend payout
ratio of around 59 per cent.

The Cosmos nickel project is located in the Kathleen Valley
area, approximately 40 kilometres north of Leinster.

The operation is located in the heart of one of Australia's most
prospective and historically productive nickel sulphide regions, which
hosts deposits such as Mt Keith, Yakabindie, Honeymoon Well,
Perseverance and Rocky's Reward at Leinster and its own Cosmos Deeps,
Alec Mairs, Prospero, Tapinos and Anomaly 1 deposits.

To date, Jubilee has discovered five high-grade massive nickel
sulphide deposits within the vicinity of the Cosmos nickel project,
namely Cosmos, Cosmos Deeps and the recently discovered Alec Mairs,
Prospero and Tapinos deposits.

Production for the operation to date has been sourced from the
Cosmos and Cosmos Deeps deposits.

The Cosmos deposit was discovered in September 1997, with
development of the deposit commencing in October 1999 and first
concentrate production in April 2000.

Being a near-surface deposit, Cosmos was mined using
conventional open-pit methods.

Mining of the deposit was completed in August 2003, with a total
of 427,745 tonnes of ore containing some 37,250 tonnes of nickel metal
being extracted.

The Cosmos Deeps orebody is located some 500 metres below
surface and was discovered in January 2000.

First ore was produced in June 2003 with a smooth transition
between the two production sources.

ENDS

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