target zone by xmas

ASX Announcement 7 December 2006
Diamond Drilling Update - WNP
Diamond drilling of hole NMD0001F has been completed to a downhole depth of
1,020 metres and is currently awaiting DHTEM surveys. NMD0001F was drilled
parallel to the interpreted nickel sulphide mineralisation at Mt Windarra and was
wedged off diamond drill hole NMD0001 at approximately 620 metres.
NMD0001F is to be used as a DHTEM platform across and down plunge of the high
grade nickel sulphides intersected in previous holes by WMC and Niagara. It is
anticipated that this parallel hole will be able to provide information on the continuity
of the nickel sulphide mineralisation and allow a high level of accuracy in targeting of
the high grade nickel sulphide zones below the historic mine workings.
While the Company is undertaking the DHTEM surveys of NMD0001F and planning
takes place to test further targets below the immediate Mt Windarra mine
environment the diamond drill rig is being moved to Denny Bore approximately 8km
south of the Mt Windarra mine workings to follow up previous drilling of high grade
massive nickel sulphides (17.5% Ni) which were intersected in WED4A.
It is the Company’s belief that the Denny Bore area could host a very high grade
nickel sulphide resource after DHTEM results from WED4A suggested that we have
yet to intersect the main body of a large conductive source and as such remains a
high priority drill target area.
The diamond drilling rig will operate on double shifts and it is expected that the target
zone will be intersected before the Christmas break.
The Company looks forward to updating shareholders on the WNP when further
information and results become available.