Ann: Drilling Program Commences at Mt Cobalt, page-75

AusNiCo (ASX: ANW), as previously reported on November 2010, intersected 181 metres at 0.25% nickel from drilling in hole PEMD1 at the Pembroke prospect, supporting extensions to its large low grade nickel sulphide mineralized system.

Hole PEMD1 also returned 21 metres at 1.04% copper, 2.09 grams per tonne gold and 145 parts per million cobalt.

In just its first diamond drill hole at the Pembroke Nickel Prospect in South East Queensland, AusNiCo(ASX: ANW) has hit; 20.9 m at 1.04% copper, 2.09g/t gold, and 26m at 0.44% nickel, 224ppm cobalt.

That's 2% Ni Eq. for 21 metres.

The intersection highlight included:
- 12.33m at 1.49% copper, 2.95g/t gold; including 1m at 9.56g/t gold, 15.85g/t silver, 5.06% copper and 0.53% nickel.


The company is encouraged by the latest results of the more recent percussion drill program as they contribute to an increase in the area of nickel sulphide mineralisation at the Pembroke prospect where AusNiCo ultimately aims to delineate a substantial open pit development.

Mr John Downie, managing director at Ausnico, told Proactive Investors that "we are progressing to test for targets in the 50 million tonnes 0.4% nickel plus deposit size in the Black Snake Plateau Plateau and are confident that we will find these at Pembroke and Mt Cobalt.

"At Mt Cobalt we have already drilled up to 96 metre thick nickel oxide (0.59% Ni) that extends over an area of 400 meters long and 250 metres wide." There is strong evidence that this large system overlies primary nickel sulphides.

Mr Nick Mather, non executive director of AusNiCo added that "at the Pembroke prospect we've been drilling where we've got frequent intersections from a few meters to 1% over intersections up to 0.25% over 118 meters. Importantly the sulphide is recoverable using float techniques. It also has the appeal of having low arsenic values in the nickel concentrate."

The company has now completed a 2,005 metre reverse circulation drilling campaign at the Pembroke project near Gympie in Far North Queensland. The program moves AusNiCo closer to establishing the tonnage potential in the Blake Snake Region at Pembroke, Silver Valley and the nearby Mt Clara/Mt Coora prospect.

Other highlights include:

- 18 metres at 0.4% nickel from 62 metres, including 8m at 0.54% nickel;
- 48 metres at 0.4% nickel from 74 metres, including 22m at 0.62% nickel;
- 18 metres at 1.27g/t per tonne gold from 92 metres; and
- 12 metres at 0.39% nickel from 48 metres.

Ausnico is also planning a drilling program at the Ridleys prospect to the south where the company already has high grade nickel over 2% in the drilled oxide cap.

The drilling is designed to further define the extent of mineralization and tonnage potential this prospect. Mineralization occurs over a 200 meters by 100 meters system to a depth of up to 180 meters.

Significantly, the Pembroke prospect remains open to the West and North and at depth, offering potential to double the size of the system. Also, sulphide Ni potential at the Ridley’s and Mt Cobalt prospects remains open
Ausnico is also drilling at the Ridleys prospect to the south where the company already has high grade nickel over 2% in the drilled oxide cap.

The drilling is designed to further define the extent of mineralisation and tonnage potential this prospect. Mineralisation occurs over a 200 metres by 100 metres system to a depth of up to 180 metres.

A recent Pole-Di-Pole Induced Polarisation (IP) survey identified a number of new disseminated sulphide targets which have been drill tested during the reverse circulation program.

Mather said "we have high order IP targets still to follow at the northern end of the Mt cobalt and the northern end of the 5 kilometre silver valley trend at the Peak prospect.

"At Marlborough south we are looking to apply the same model in a very nickeliferous belt."

Significant gold and copper zones are also evident in the Pembroke prospect and the company is planning further drill testing to reconcile the dimensions of this system.

On July 4 AusNiCo announced that it had potentially uncovered a large copper silver mineralised system at the Silver Valley prospect which remains open to the north, south and at depth, providing the potential for strike to extend over five kilometres.

Importantly, the company's projects have strong infrastructure including access to power, water, roads, rail, ports.