Redross

A wedge hole, RRD0120W1, was drilled and intersected two zones of thin massive sulphides; 0.47 metres @ 5.38% nickel from 679.70 metres and 0.47 metres @ 3.39% nickel from 693.16 metres. The upper zone is situated in an ultramafic hanging-wall position and approximately 13 metres above the second zone located above a metre of preserved mafic footwall. Diamond drill hole RRD136 tested the N03 surface approximately 200 metres up-plunge of RRD0120 and RRD0120W1. This hole returned an intersection of 0.36 metres @ 5.14% nickel from 646.41 metres in an ultramafic hanging-wall lithology

Production for the quarter was lower than the previous quarter due largely to lower manning levels over the Christmas period. Rehabilitation and redevelopment to access the old workings continued during the quarter with a view to starting remnant mining in those areas. 72 metres of capital development to access the remnant N10 ore on the 4 level was achieved. During the quarter increasing ground stresses continued to develop along the stoping front, in line with expectations. The stoping sequence and methodology has been modified, with an increase in the proportion of long hole stoping.

Announced the results from recent drilling below the Redross Mine. The latest result, with an estimated true width of 1.9 metres @ 5.7% nickel in hole RUD058A, confirms the existence of a zone of generally medium grade mineralisation approximately 100 metres down-plunge of the current ore reserve.