Gladstone Pacific Nickel Limited - ACN 104 261 887 - Gladstone Pacific Nickel Limited Completes First Phase of Ouinné Drilling Program

    TORONTO, Feb. 12 /CNW/ -


    Gladstone Pacific Nickel Limited ("GPNL", the "Company"), as previously
announced on 20th August 2007, entered into a joint venture ("JV") arrangement
with Société Minière Georges Montagnat ("SMGM") on the Ouinné nickel-cobalt
laterite project in New Caledonia. GPNL has the right to purchase a 49%
interest in the JV.
    The Ouinné Project mineral concessions total 2,127 Ha and lie within the
South Province of New Caledonia. Additional project lands comprise 3 sets of
PRAs (exploration permits) totalling 894.9 Ha which adjoin the above-mentioned
mineral concessions. The concessions are ideally located close to the coast
with deep water access available within 100 metres of the shore line and also
positioned close to existing housing and airport infrastructure.
    It is the intention of GPNL that a mining operation will be established
at Ouinné which will provide a secure source of nickel-cobalt laterite feed to
the Company's refinery at Yarwun, near Gladstone in Queensland.

    Ouinné Drilling Program

    After an initial short program of due diligence drilling in 2007, GPNL
and partner SMGM jointly undertook a comprehensive 12-month drilling program
designed to confirm and extend the mineralisation outlined by historical
drilling results.
    In 2008, GPNL and SMGM completed 265 holes for 6,387 metres. The results
of this work confirm the geological continuity of the mineralised deposits
over an area of approximately 273 hectares on the SGM 5 and SGM 6 mineral
concessions. Compilation and interpretation of all the geological,
geotechnical and geochemical data is proceeding according to plan.
    Drilling of the Ouinné deposits revealed consistent, thick intersections
of nickel-cobalt laterite. 88% of GPNL holes intersected mineralised
laterite(1) and the average thickness of mineralised laterite exceeds 15
metres. When mined and screened, this material will produce an ideal
direct-shipping feed for the GPNL Gladstone plant. The 8 holes in the
following table are randomly selected from the database and are thus
reasonably representative of the results from the GPNL 2008 drilling campaign.

                Thickness    Ni       Co       Fe       Mg      From     To
    Hole ID         m         %        %        %        %        m       m
    SGM5-312       13.0     1.17     0.23     41.9      4.1      7.0    20.0
    SGM5-409       22.0     1.01     0.10     40.8      1.2      1.0    23.0
    SGM5-453       18.0     1.45     0.16     39.2      4.8      5.0    23.0
    SGM5-475       13.0     1.28     0.11     28.1     10.0      1.0    14.0
    SGM5-496        5.0     1.51     0.20     33.8      7.0     11.0    16.0
    SGM6-311        4.7     1.01     0.14     35.7      7.1     10.2    14.4
    SGM6-325B      15.0     1.35     0.32     48.3      0.6      1.0    16.0
    SGM6-421       28.0     1.68     0.19     42.9      2.1      5.0    33.0

    Ongoing Drilling Ouinné Work Program

    Geological mapping and literature research into historical drilling
programs has identified significant exploration targets within the JV mineral
concessions. The JV's is continuing its evaluation of these areas.
    GPNL and SMGM are now working towards a maiden mineral resource estimate
for Ouinné and it is anticipated that this will be completed during 2009.


    Geological information in this announcement and comments relating to
exploration potential and the project in general is based on information
compiled by Mr John Levings. Mr. Levings is the geology manager of GPNL and a
Member of the Australasian Institute of Mining and Metallurgy and has
sufficient experience that is relevant to the styles of mineralisation and
types of deposits under consideration and to the activity that he is
undertaking to qualify as Competent Person as defined in the JORC Code. He
consents to the inclusion in this announcement of the matters based on his
information in the form and context in which they appear.
    Statements in this document that are forward-looking and involve numerous
risks and uncertainties that could cause actual results to differ materially
from expected results are based on the Company's current beliefs and
assumptions regarding a large number of factors affecting its business. Actual
results may differ materially from expected results.
    There can be no assurance that (i) the Company has correctly measured or
identified all of the factors affecting its business or the extent of their
likely impact, (ii) the publicly available information with respect to these
factors on which the Company's analysis is based is complete or accurate,
(iii) the Company's analysis is correct or (iv) the Company's strategy, which
is based in part on this analysis, will be successful.

    (1) Mineralised laterite is defined as at least 1 metres thickness with a
        nickel plus cobalt grade exceeding 1%

For further information:

For further information: John Downie, CEO - Gladstone Pacific Nickel
Ltd, Tel: +61 (0) 7 3231 7100; Fiona Owen - Grant Thornton UK LLP, Tel: +44
207 383 5100; John Prior - Arbuthnot Securities, Tel: +44 207 012 2000; Email:

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