Mirabela Announces New Drilling Results - Initial Underground Target Area



    
    TSX: MNB, ASX: MBN
    Ordinary shares outstanding: 129,791,100
    

    PERTH, Australia, Oct. 30 /CNW/ - Mirabela Nickel Limited (TSX: MNB,
ASX: MBN) is pleased to announce the results of the latest drilling for the
Santa Rita project.
    The latest results in the Extended Deeps area are:

    
              Composite results from the Extended Deeps program

           --------------------------------------------------------
                                     Composite
                                     downhole
           Hole ID      From (m)     width (m)       Ni%       Cu%
           --------------------------------------------------------
           MBS-602        780            62         0.76      0.21
           MBS-603        930           158         0.99      0.32
           MBS-604        861            97         0.85      0.25
           MBS-605        907            65         0.80      0.23
           MBS-608        928           112         0.83      0.25
           --------------------------------------------------------
               0.5% Ni cut off grade, 4m minimum mining width
    

    The Company has now announced all 12 holes in the Initial Target Area of
the Extended Deeps and the average composite result is an outstanding 97m
grading 0.86% Ni and 0.25% Cu. As set out in the schematic long-section,
lodged on the Company's website at
http://www.mirabela.com.au/projects_galleries.asp, the Initial Target Area
comprises 12 holes on approximate 120m x 105m spacing. There are 4 holes on
each of sections 400N, 505N and 610N, collectively drilling up 600m of
down-dip extension and 300m of strike. The true widths of these results are
about 90% of down-hole widths.
    The Company is now preparing an inferred resource calculation for this
area, expected to be announced late November.
    The Company has commenced a scoping study into potential underground
mining at Santa Rita, including further expansion of the plant to accommodate
additional underground throughput. The aim is to develop an underground
project that augments production from the open-pit mine, with underground
development funded by cash flows from the open-pit.
    The latest Pit Extension result is:

    
                Composite result from Pit Extension Drilling

           --------------------------------------------------------
                                     Composite
                                     downhole
           Hole ID       From (m)    width (m)       Ni%       Cu%
           --------------------------------------------------------
           MBS-606        632           94          0.89      0.22
           --------------------------------------------------------
               0.4% Ni cut off grade, 4m minimum mining width


    This hole is located at the base of the open-pit to the north of the
Southern deeps high grade zone. It is substantially better than holes higher
up on this section, confirming a trend of improved widths and grades at depth
to the north of the Southern high grade zone. The true width of this result is
about 90% of the down-hole width.
    More details of all the above results are set out in Attachments 1, 2 and
3.

    Nick Poll                            Craig Burton
    Managing Director                    Corporate Director
    


    Background

    Mirabela Nickel Ltd owns 100% of the world class Santa Rita nickel
sulphide project and is listed on the Australian and Toronto stock exchanges.
With a JORC Indicated open-cut resource of 130mt grading 0.60% Ni for 780,000t
of contained Ni, Santa Rita is the largest nickel sulphide discovery
world-wide in the last 12 years.
    Construction of a 6.4 mtpa nickel sulphide concentrator commenced in
November 2007 and is currently 60% complete. The plant will produce 18,500 tpa
of nickel in a sulphide concentrate from one open-cut mine starting from mid
2009 increasing to 27,000 tpa by mid 2010. At this rate of production the
project will have a mine life of at least 20 years.
    Photos of the construction progress are available on the Company website
at: http://www.mirabela.com.au/projects_galleries.asp.

    Qualified Person Statement: The information in this report that relates
to Mineral Resources and Exploration Results is based on information compiled
by Lauritz Barnes who is a Member of The Australian Institute of
Geoscientists. Lauritz Barnes is a consultant to Mirabela Nickel Limited.
Lauritz Barnes has sufficient experience which is relevant to the style of
mineralization 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 for Reporting of Exploration Results,
Mineral Resources and Ore Reserve' and a Qualified Person in accordance with
NI 43-101. Lauritz Barnes consents to the inclusion in the report of the
matters based on their information in the form and context in which it
appears.

    
          Attachment 1: New intersections - Extended Deeps drilling
                           (0.5% Ni cut off grade)
    -------------------------------------------------------------------------
                                             Downhole
    Hole ID       From (m)       To (m)       width          Ni%         Cu%
    -------------------------------------------------------------------------
    MBS-602         780           804           24          0.73        0.24
    MBS-602         810           820           10          0.62        0.23
    MBS-602         831           844           13          0.93        0.20
    MBS-602         929           935            6          0.66        0.18
    MBS-602         941           950            9          0.82        0.15

    MBS-603         941          1090          149          1.02        0.33
    MBS-603        1103          1112            9          0.56        0.10

    MBS-604         866           926           60          0.87        0.25
    MBS-604         932           959           27          0.83        0.23
    MBS-604         967           972            5          0.78        0.46
    MBS-604        1018          1023            5          0.78        0.15

    MBS-605         907           957           50          0.74        0.22
    MBS-605         967           982           15          0.98        0.24

    MBS-608         928          1033          105          0.84        0.26
    MBS-608        1077          1084            7          0.67        0.12
    -------------------------------------------------------------------------
    All chemical analyses were completed by ALS Chemex, Vancouver, Canada



          Attachment 2: New intersections - Pit Extension drilling
                           (0.4% Ni cut off grade)
    -------------------------------------------------------------------------
                                             Downhole
    Hole ID       From (m)       To (m)       width          Ni%         Cu%
    -------------------------------------------------------------------------
    MBS-606         632           652           20          0.92        0.27
    MBS-606         656           660            4          0.55        0.17
    MBS-606         668           705           37          0.86        0.21
    MBS-606         724           728            4          0.58        0.09
    MBS-606         780           809           29          1.00        0.23
    -------------------------------------------------------------------------
    All chemical analyses were completed by ALS Chemex, Vancouver, Canada



                  Attachment 3: Drill hole collar locations
    -------------------------------------------------------------------------
                           Survey                            Hole        Azi-
    Hole ID    Hole type    type  Easting   Northing   RL    Depth  Dip  muth
    -------------------------------------------------------------------------
    MBS-602  Extended Deeps  TS  423194.4  8430610.0  143.3   980.0  -60  270
    MBS-603  Extended Deeps  TS  423330.4  8430610.0  134.8  1201.0  -75  270
    MBS-604  Extended Deeps  TS  423405.2  8430400.0  138.2  1072.8  -68  270
    MBS-605  Extended Deeps  TS  423330.1  8430505.0  134.9  1067.0  -69  270
    MBS-606  Southern Deeps  TS  423056.8  8430610.0  144.6   851.0  -60  270
    MBS-608  Extended Deeps  TS  423330.5  8430610.0  135.0  1218.0  -70  270
    -------------------------------------------------------------------------
    (1) TS - Total Station Survey Tool.
    





For further information:

For further information: Australia contact: Nick Poll or Craig Burton,
Telephone: +61 8 9324 1177, nickp@mirabela.com.au, craigb@mirabela.com.au;
Australia contact (media): Caroline de Mori, Purple Communications, Telephone:
+61 8 9485 1254, cdemori@purplecom.com.au; Toronto contact (media): Eric Tang,
Porter Novelli, Telephone: (416) 422-7200, eric.tang@porternovelli.com

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