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AusNiCo drilling extends nickel sulphide mineralisation at Pembroke Prospect

AusNiCo (ASX: ANW) has intersected 181 metres at 0.25% nickel (Ni) from drilling at the Pembroke prospect, supporting extensions to its large low grade nickel sulphide mineralised system.

Hole PEMD1 also returned 21 metres at 1.04% copper (Cu), 2.09 grams per tonne (g/t) gold and 145 parts per million (ppm) cobalt (Co).

The company would be encouraged by these results 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.

The company has now completed a 2,005 metre (13 hole) reverse circulation (RC) drilling campaign at the 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% Ni from 62 metres, including 8 metres at 0.54% Ni from 62 metres;
- 48 metres at 0.4% Ni from 74 metres, including 22 metres at 0.62% Ni from 84 metres;
- 18 metres at 1.18g/t gold from 92 metres; and
- 12 metres at 0.39% Ni from 48 metres.

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

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.

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

The company said "chargeability anomalies were drill tested and were found to generally relate to zones of disseminated sulphide mineralization several of which were nickeliferous."

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, and ports.

With the continued strong nickel price, currently at $23,975 per tonne, and gold hitting an all time high of US$1589.40 overnight, the outlook for the company remains healthy.