nickel production update – blair mine

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Level 1, 681 Murray Street, West Perth, Western Australia 6005
Tel: 08-9481 5811 Fax: 08-9481 5611 Email: [email protected]
14 December 2005
Company Announcements Office
Australian Stock Exchange Limited
10th Floor
20 Bond Street
SYDNEY NSW 2000
Dear Sir
Nickel Production Update – Blair Mine
Australian Mines Limited (ASX: AUZ) is pleased to announce that production from its Blair
Nickel mine, located near Kalgoorlie, WA, for the December Quarter is in line with previous
forecasts.
The mine produced some 129 contained Ni tonnes in October and 153 contained Ni tonnes
in November 2005. December forecast is anticipated to be similar to November production.
Production from the Blair Deeps continues to outperform the Mining Reserves. The 470
level (the lowest exposed ore drive) has exceeded our mining reserve calculations by 52%
to date. This was mainly due to the EO3 ore body being favourably wider than anticipated
and extending approximately 5 metres beyond the reserve envelope.
Initial development on the next level (457 level) has exposed massive nickel ore with grades
similar to the 470 level.
With the nickel price strengthening, the Company is assessing the next levels of production
going into 2006. The Company remains optimistic that mining to the 420 level can be
conducted as planned, given the improved nickel market and positive ore reserve
reconciliations.
Yours faithfully
Brett Young
Chief Operating Officer
AUSTRALIAN MINES LIMITED