Mirabela Nickel announces more Southern Deeps results at Santa Rita



    PERTH, Australia, Oct. 10 /CNW/ - Mirabela Nickel Limited (TSX: MNB, ASX:
MBN) is pleased to announce the Southern Deeps drilling continues to exceed
expectations. Drill holes MBS 428 and MBS 429 have returned composite
intersections of 130m at 0.72% Ni and 121m at 0.79% Ni respectively. The
recent results are as follows:

    
              ------------------------------------------------
                                         Composite
                               From       downhole
               Hole ID          (m)        width(1)       Ni%
              ------------------------------------------------
               MBS 428          340          130         0.72
               MBS 429          307          121         0.79
               MBS 430          218           56         0.49
               MBS 431          220           84         0.51
               MBS 434          365           76         0.77
              ------------------------------------------------
               0.4% Ni cut off grade, 4m minimum mining width
       (1) The actual drilling intersections that are comprised in the
           composite downhole widths are shown in Attachment 1.
    

    The thick high grade intersections of MBS 428 and 429 are on the next two
sections immediately south of drill hole MBS 427 which returned Santa Rita's
best composite intersection to date of 156m at 0.88% Ni. These holes
demonstrate the thickness and continuity of this bonanza zone. The recent
intersections of high grade material lie mostly just below the limits of the
current 69.2mt Potential Mill Feed pit.
    This southern high grade zone appears to have good continuity below 200m
vertical depth and along 200m of strike with average true widths about 70m and
average grades about 0.8% Ni. With the open-pit extending to 400m vertical
depth in the Central and Northern zones, this zone is likely to make a
significant contribution to the next in-pit resource calculation.
    Approximately 80% of the southern high grade zone mineralisation is
hosted by the pyroxenite unit which has less non-sulphide nickel and permits a
higher nickel recovery. The zone remains open at depth and appears to be
improving with depth. Preliminary scoping suggests these widths and grades
might be economic for bulk underground mining. Accordingly, any depth
extension of the southern high grade zone has the potential to add a
significant underground resource to the Santa Rita project, further increasing
the mine life. A drilling program to test this depth extension and establish a
potential Inferred status underground resource is currently being considered.
    To date the southern Central and Southern Deeps drilling programs have
returned an outstanding weighted average composite intersection of 64m at
0.70% Ni from 75 drill holes, of which 37 holes are subsequent to the 40%
resource upgrade announced in June. All assays have been received and the next
resource update calculation is scheduled for completion late this month, with
a Santa Rita probable reserve calculation planned for November.
    Drilling of the Southern Deeps is continuing with 3 holes already drilled
out of a new program of 12 holes for 5,000m. The new program is targeting the
continuation of the high grade material on sections south of drill hole MBS
429 as well as testing the shallower dipping mineralization in the southern
most sections.
    Attached are further details of the latest drilling results. An updated
schematic longsection showing the location of the latest results will be
posted on the Company's website www.mirabela.com.au.

    The information in this report that relates to Exploration Results,
Mineral Resources or Ore Reserves is based on information compiled by Nick
Poll, who is a Member of The Australasia Institute of Mining and Metallurgy.
Nick Poll is employed by Mirabela Nickel Ltd.
    Nick Poll 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'. Nick Poll consents to the inclusion in the
report of the matters based on his information in the form and context in
which it appears.


    
    Attachment 1: New significant intersections - Indicated Resource Drilling
              (0.4% Ni cut off grade, 4m minimum mining width)

    -------------------------------------------------------------------------
                    From                     Downhole
    Hole ID          (m)        To (m)       width(2)       Ni%          Cu%
    -------------------------------------------------------------------------

    MBS 428          340          344            4         0.43         0.19
    MBS 428          349          416           67         0.79         0.25
    MBS 428          420          460           40         0.59         0.16
    MBS 428          488          498           10         0.58         0.15
    MBS 428          503          512            9         1.06         0.22

    MBS 429          307          348           41         0.82         0.31
    MBS 429          352          422           70         0.82         0.27
    MBS 429          436          440            4         0.40         0.11
    MBS 429          461          467            6         0.53         0.15

    MBS 430          218          223            5         0.56         0.17
    MBS 430          295          299            4         0.42         0.15
    MBS 430          301          305            4         0.40         0.10
    MBS 430          309          352           43         0.50         0.14

    MBS 431          220          225            5         0.55         0.29
    MBS 431          248          261           13         0.52         0.16
    MBS 431          269          273            4         0.66         0.25
    MBS 431          283          296           13         0.41         0.13
    MBS 431          300          314           14         0.62         0.19
    MBS 431          324          328            4         0.72         0.19
    MBS 431          334          349           15         0.40         0.09
    MBS 431          353          369           16         0.52         0.14

    MBS 434          365          390           25         0.78         0.24
    MBS 434          400          409            9         0.73         0.19
    MBS 434          415        457.3           42         0.77         0.22
    -------------------------------------------------------------------------
    All chemical analyses were completed by ALS Chemex, Vancouver, Canada.

      (2) The Company estimates that the true widths are 75% to 80% of
          the drilling intersections reported as downhole widths in
          the table above.


                 Attachment 2:  Drill hole collar locations
    -------------------------------------------------------------------------
                            Survey                           Hole        Azi-
    Hole ID     Hole type    type  Easting Northing    RL   Depth   Dip  muth
    -------------------------------------------------------------------------
    MBS 428  Southern Deeps  TS(3)  422910  8430355    137    521   -60   270
    MBS 429  Southern Deeps  TS     422900  8430310  135.5    483   -60   270
    MBS 430  Southern Deeps  TS     422970  8430150  131.5    380   -60   270
    MBS 431  Southern Deeps  TS     423010  8430110  131.5    403   -60   270
    MBS 434  Southern Deeps  TS     422795  8430470    149  457.3   -60   270
    -------------------------------------------------------------------------
                     (3) TS - Total Station Survey Tool
    





For further information:

For further information: Nick Poll, Managing Director, Telephone: +61 8
9324 1177, Email: info@mirabela.com.au; MIRABELA NICKEL LTD, Registered
Office: Ground Floor, 8 Colin Street, West Perth 6005, Telephone: +61 8 9324
1177, Facsimile: +61 8 9324 2171, www.mirabela.com.au, Email:
info@mirabela.com.au; ASX Code: MBN, TSX Code: MNB

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