Gladstone Pacific Nickel sets exploration target of 50 million tonnes of nickel laterite



    
             GLADSTONE PACIFIC NICKEL LIMITED (ACN 104 261 887)

    -   Diamond drilling in New Caledonia confirms historic data

    -   Exploration target set at 50 million tonnes of nickel laterite for
        1.1 - 1.3 million lbs of nickel

    -   Further 8,000 metres of drilling planned for early 2008
    

    GLADSTONE, QUEENSLAND, Nov. 20 /CNW/ - Gladstone Pacific Nickel Ltd
("GPNL" or "the Company") is a dynamic company focused on the primary
objective of owning and developing nickel laterite deposits in the South West
Pacific Region, and producing refined nickel metal from its proposed high
pressure acid leach plant at Gladstone, Australia. The Joint Venture and
Acquisition Agreement with Société Minière Georges Montagnat ("SMGM"),
announced on 20 August 2007, is one of the key pillars of the Company's
strategy to achieve ownership of nickel laterite ore for its Gladstone plant.
    The Company has completed a diamond drill program on the nickel laterite
tenements in New Caledonia that are included in GPNL's agreement with SMGM.
Prior to the proposed Joint Venture and Acquisition Agreement with SMGM,
160 drill holes were drilled for a total of 4,147 metres. The objective of the
Company's drill program was to substantiate the historical SMGM drill data by
repeating some of the drilling and analysing the results in order to confirm
the historical data. The twin drill program consisted of 19 drill holes for a
total of 708 metres. The results of the twinned drill holes using a 0.8% Ni
grade cut-off are shown in the table below.

    
    -------------------------------------------------------------------------
    Twinned Holes     From        To     Width        Ni        Co        Fe
    -------------------------------------------------------------------------
    SGM5 02 twin         1        39      38.0      1.16      0.17     42.19
    -------------------------------------------------------------------------
    SGM5 10 twin         1        31      30.0      1.19      0.04     29.47
    -------------------------------------------------------------------------
    SGM5 13 twin         8        32      24.0      1.48      0.14     40.59
    -------------------------------------------------------------------------
    SGM5 28 twin         7        30      23.0      1.24      0.08     38.84
    -------------------------------------------------------------------------
    SGM5 30 twin        10        41      31.0      1.09      0.04     20.98
    -------------------------------------------------------------------------
    SGM5 37 twin         8        31      22.7      1.35      0.07     29.12
    -------------------------------------------------------------------------
    SGM5 53 twin         2        29      26.7      1.22      0.12     41.28
    -------------------------------------------------------------------------
    SGM5 74 twin         1        28      27.4      1.00      0.13     37.62
    -------------------------------------------------------------------------
    SGM5 75 twin         5        35      30.3      1.42      0.13     37.25
    -------------------------------------------------------------------------
    SGM6 05 twin        10        23      13.3      1.24      0.18     48.03
    -------------------------------------------------------------------------
    SGM6 104 twin        7        27      20.0      1.31      0.14     41.82
    -------------------------------------------------------------------------
    SGM6 109 twin        1        31      30.0      1.36      0.05     28.26
    -------------------------------------------------------------------------
    SGM6 112 twin        8        45      37.0      1.44      0.10     28.86
    -------------------------------------------------------------------------
    SGM6 18 twin         0        34      33.8      1.27      0.16     49.16
    -------------------------------------------------------------------------
    SGM6 191 twin        6        41      35.3      1.18      0.11     36.68
    -------------------------------------------------------------------------
    SGM6 26 twin         3        36      33.0      1.36      0.07     31.90
    -------------------------------------------------------------------------
    SGM6 34 twin         4        51      47.0      1.43      0.14     36.28
    -------------------------------------------------------------------------
    SGM6 44 twin         1        39      38.0      1.24      0.15     44.24
    -------------------------------------------------------------------------
    SGM6 49 twin         2        30      28.4      1.11      0.18     50.57
    -------------------------------------------------------------------------
    Averages                             29.94      1.27      0.12     37.18
    -------------------------------------------------------------------------

    The original drill holes with a similar cut-off grade are presented in the
table below:

    -------------------------------------------------------------------------
    Original Holes    From        To     Width        Ni        Co        Fe
    -------------------------------------------------------------------------
    SGM5 02              1      44.6      43.6      1.29      0.14     42.14
    -------------------------------------------------------------------------
    SGM5 10              3        32      29.0      1.36      0.04     39.11
    -------------------------------------------------------------------------
    SGM5 13              9        41      32.0      1.25      0.14     46.35
    -------------------------------------------------------------------------
    SGM5 28              6        29      23.0      1.23      0.10     28.56
    -------------------------------------------------------------------------
    SGM5 30             12        37      25.0      1.62      0.09     21.03
    -------------------------------------------------------------------------
    SGM5 37              5        34      29.0      1.34      0.07     41.01
    -------------------------------------------------------------------------
    SGM5 53              0        34      34.0      1.45      0.16     32.71
    -------------------------------------------------------------------------
    SGM5 74              5      32.2      27.2      1.08      0.24     39.66
    -------------------------------------------------------------------------
    SGM5 75              1        39      38.0      1.18      0.11     39.88
    -------------------------------------------------------------------------
    SGM6 05              9      32.7      23.7      1.15      0.14     37.63
    -------------------------------------------------------------------------
    SGM6 104             7        27      20.0      1.27      0.16     46.06
    -------------------------------------------------------------------------
    SGM6 109             1        20      19.0      1.38      0.06     47.22
    -------------------------------------------------------------------------
    SGM6 112             6        36      30.0      1.30      0.13     38.60
    -------------------------------------------------------------------------
    SGM6 18              1        33      32.0      1.25      0.17     40.86
    -------------------------------------------------------------------------
    SGM6 191          3.25        28      24.8      1.21      0.20     48.70
    -------------------------------------------------------------------------
    SGM6 26              1        32      31.0      1.37      0.10     44.05
    -------------------------------------------------------------------------
    SGM6 34              4        45      41.0      1.26      0.09     41.10
    -------------------------------------------------------------------------
    SGM6 44              1        35      34.0      1.32      0.12     52.13
    -------------------------------------------------------------------------
    SGM6 49              3        38      35.0      1.10      0.09     56.18
    -------------------------------------------------------------------------
    Averages                             30.07      1.28      0.12     41.49
    -------------------------------------------------------------------------
    

    Samples were analysed by Ingemine laboratory (440 samples) in Noumea, New
Caledonia and Ultra Trace (342 samples) in Perth, Western Australia. Check
analysis performed on approximately every tenth sample, by ALS Chemex in
Brisbane Australia, ensured the accuracy of the analysis conducted by Ingemine
and Ultra Trace.
    The twinned drill hole results are encouraging and confirm the historical
drill data. A feature of the geology of the drilled area is its variability
over short distances evidenced by some differences between the historical data
and the twin hole information. This variability is a common characteristic of
nickel laterite geology.
    Based on the historical and twin drill hole information, the Company has
set an exploration target of 50 million tonnes containing between 1.1 and
1.3 million lbs of nickel and between 110 and 130 million lbs of cobalt. A
drill program comprising approximately 8,000 metres to add to the existing
drill results is planned to commence early in 2008.
    Albert Mostert is the Qualified Person (as defined in NI 43-101) on the
project.
    The reader is cautioned that the potential quantity and grade of the
Exploration Target described is conceptual in nature, that there has been
insufficient control on historical data and exploration to define a mineral
resource and that it is uncertain if further exploration will result in the
target being delineated as a mineral resource. Until a feasibility study has
been completed there is no certainty that the Company's projections will be
economically viable.

    Other points:

    As announced on 20 August 2007 shareholder approval for the issue of
shares, pursuant to the Joint Venture and Acquisition Agreement with SMGM,
will be sought at the Company's Annual General Meeting to be held in Brisbane
on 22 November 2007.

    Note to Editors:

    Gladstone Pacific Nickel Limited (GPNL) is an Australian mining
development company presently undertaking an Integrated Definitive Feasibility
Study (IDFS) for the Gladstone Nickel Project (GNP). The company's vision is
to build a major long-life nickel cobalt refinery at the deepwater Port of
Gladstone, in Central Queensland, Australia, treating abundant high grade
nickel laterite ores from New Caledonia and other south-west Pacific islands,
underpinned by beneficiated ores from its own Marlborough deposits. The
Project has the potential to be one of the largest of its type in the world
producing some 126,000 tpa nickel (8 - 10% of global nickel demand) and
10,400 tpa of cobalt metal from its first two stages.





For further information:

For further information: John Downie, Chief Executive Officer -
Gladstone Pacific Nickel Ltd, Tel: +61 7 3211 8899; Peter Ward, Joe Lunn -
Insinger de Beaufort, Tel: +44 207 190 7000; Simon Rothschild, Keith Irons -
Bankside Consultants, Tel: +44 207 367 8888

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Gladstone Pacific Nickel Ltd.

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