Emu Nickel Identifies Strong VTEM Anomalies At Kambalda Nickel Project

As Emu Nickel recently reported (ASX release 26 February 2008), a 1,266 line-km Versatile Time Domain Electromagnetic (VTEM) was flown by Mincor Resources over several target areas within the Kambalda West Joint Venture tenements in December 2007.

Emu’s analysis of the results of this extensive survey has identified 10 strong VTEM anomalies each with characteristics consistent with the presence of a significant sulphide source. VTEM is an airborne electromagnetic technique recently introduced into Australia, which can detect a highly conductive body such as massive sulphides down to two hundred metres in depth.

Emu considers that two of the 10 anomalies are very strong and the remaining 8 anomalies are strong.

In all cases the VTEM anomalies occur on or adjacent to interpreted ultramafic contact zones indicated by aeromagnetic anomalies and would be of a favourable setting for Kambalda-style nickel sulphides if at the basal contact of the unit. In some cases, komatiites (a favourable ultramafic host rock) are known to occur nearby as evidenced from previous mapping and drilling.

Significantly, historic drill intersections grading up to 4% Nickel in sulphides have been reported at the nearby Queen Victoria Rocks prospect confirming the nickel potential of this underexplored district where very little previous exploration has been reported on the Joint Venture tenements. Mincor is planning to field validate each VTEM anomaly in the near future. Once all the necessary permitting has been acquired, a reconnaissance drilling program will be undertaken with the aim of assessing the significance of the VTEM anomalies and determining regional stratigraphy.

As previously reported, Emu has the right to earn up to a 100% interest in a tenement package including the Kambalda West tenements where Mincor Resources may earn up to a 70% interest by expenditure of $1.5 million by May 2012. Emu’s directors are most encouraged by these early positive results.

The information in this report that relates to exploration results is based on information compiled or reviewed by Roger Thomson BSc, ARSM, MAusIMM, who is a Member of the Australian Institute of Geoscientists. Roger Thomson is a consultant to Emu Nickel NL. Roger Thomson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Roger Thomson consents to the inclusion of this information in the form and context in which it appears in this report.

About Emu Nickel NL:

Emu Nickel is an active, nickel-focused, Australian-based mineral explorer with a significant portfolio of projects in Western Australia ranging from grassroots to advanced nickel sulphide projects.

Incorporated in 2007, Emu Nickel was formed to farm-in to Image Resources’ extensive portfolio of nickel projects in the Eastern Goldfields and Forrestania-Southern Cross nickel provinces and in turn allow Image to focus on its core mineral sand projects.

The Company’s objective is to discover high-value nickel sulphide deposits in Australia by exploring its portfolio of projects in order to create wealth for its shareholders. Emu aims to achieve this objective by the application of sound geoscientific and commercial criteria and, where appropriate, by partnering with other companies which have the skills and financial resources to add value to Emu Nickel’s projects.

Contact:

Roger Thomson
Technical Director

George Sakalidis
Managing Director

Telephone: +61-8-9226-4266 Facsimile: +61-8-9485-2840 Email: info@emunickel.com.au

Web: www.emunickel.com.au

Source:Emu Nickel NL