Jubilee Mines has encountered significant new drilling results from the AM5 nickel deposit, 500 metres south of the Cosmos Deeps Mine in the north-eastern goldfields of Western Australia.

Significant new drilling results include 30 metres at 3% nickel from one hole and 2.3 metres at 8% nickel from another, including 0.6 metres at 25.1% nickel. The best previously reported intersections into the AM5 deposit were 23.7 metres at 3.6% nickel, including 1.5 metres at 20%, 3.1 metres at 19.4%, 1.7 metres at 12% and 1.8 metres at 8.5%.

The AM5 deposit consists of high grade massive nickel sulphides located on the basal contact, with a large zone of high grade disseminated nickel sulphides immediately above this hosted by the Cosmos ultramafic rock unit.

The new results confirm the presence of a significant body of high grade disseminated nickel sulphides in close association with the high grade basal massive nickel sulphides, and in close proximity to the company's existing mining infrastructure within the Alec Mairs Complex.

These significant new results confirm Jubilee's belief that the wider Alec Mairs Complex is an emerging, large mineralised system with potential for multiple substantial sized nickel sulphide deposits.

The operation is in the heart of one of Australia's most prospective and historically productive nickel sulphide regions, which hosts deposits such as Mt Keith, Yakabindie, Honeymoon Well, Perseverance and Rocky's Reward at Leinster and Jubilee's Cosmos Deeps, Alec Mairs, Prospero, Tapinos and Anomaly 1 deposits.

The Cosmos deposit was discovered in September 1997, with development of the deposit starting in October 1999 and first concentrate production in April 2000. Being a near surface deposit, Cosmos was mined using conventional open-pit methods. Mining of the deposit was completed in August 2003, with a total of 427,745 tonnes of ore containing 37,250 tonnes of nickel metal being extracted.

The Cosmos Deeps ore body is 500 metres below surface and was discovered in January 2000. First ore was produced in June 2003 with a smooth transition between the two production sources.