Thursday, October 22, 2009 Emu Nickel shares jump after...

Thursday, October 22, 2009

Emu Nickel shares jump after potential new nickel sulphide zone near Kalgoorlie

Shares in Emu Nickel (ASX: EMU) rocketed almost 30 per cent after the company announced potentially rich nickel zones had been uncovered at its Emu Lake joint venture, located 70km north east of Kalgoorlie.

Following today’s news, shares in the Perth-based miner jumped 29.5 per cent, or 6.5c, to 28.5c, giving nickel investors something to smile about.

In a statement, the company revealed diamond drilling had intersected nickel sulphides to the north, south and within the Binti Gossan Zone.

The results indicates the mineralisation remains open to the north, identifying a potential new nickel sulphide position 300m to the south which is open at depth.

Significant intersections include:
ELD 023: 0.28m @ 5.35% Ni and 0.40% Cu from 292.79m
ELD 035: 0.22m @ 1.84% Ni and 0.74% Cu from 528.97m
ELD 036: 1.58m @ 3.70% Ni and 1.33% Cu from 320.56m

Further drilling is being targeted as the company awaits assays from an additional drill hole.

Emu Nickel, which is earning one-third of the joint venture, is partnered with Xstrata Nickel, which is earning two-thirds by funding $3.25 million over a three-year period ending September 2010.

Emu has six nickel projects in the Yilgarn area surrounding Kalgoorlie and a 51 per cent stake in the Windy Knob tenement package near Meekatharra that hosts uranium, base metals and possibly iron ore.