Significant nickel mineralization has been intersected in the first diamond drill hole drilled in 2008 at Breakaway Resources’ West Kambalda Nickel Project in Western Australia.

The results, from the sixth diamond drill hole completed to date by Breakaway, confirm high grade extensions to the Surface 1 nickel mineralization at the 1A nickel deposit.

The hole returned 7.29m @ 6.94% nickel, 0.59% copper and 0.7grams/tonne platinum+lead from 189.30m on Surface 1, including 1.42m @ 13.08% nickel, 0.77% copper and 0.8 grams/tonne platinum+lead from 195.17m.

It was drilled about 60m north of a previous hole which returned 5.6m @ 4.19% nickel from 146.4m on Surface 1 and 1.49m @ 7.32% nickel from 262.26m, including 1.14m @ 9.65% nickel from 261.26m on Surface 2.

The new intersection further highlights the potential importance and high tenor of the nickel suphide mineralization on Surface 1, which is 40m in the hangingwall of Surface 2 on which previous mining was centred on the up-dip portion during the early 1990s.

The full extent of the Surface 1 mineralization is yet to be determined. The available drilling has intersected the mineralization over a down-dip extent of about 200m starting from near the surface to a vertical depth of about 180m.

Two recent additional holes, which were drilled 40m and 115m down dip of the latest intersection did not locate deeper down-dip extensions to Surface 1. However, two holes are not considered to be an adequate test considering the structural complexity of the deposit.

Diamond drilling will continue as a priority, to investigate the potential of Surface 1 as well as the broader potential of the 1A deposit.

Breakaway’s managing director Peter Buck says: “Our exploration activities in this area continue to be rewarded with success, demonstrating the high nickel tenor of the 1A deposit and the potential for significant extensions to the mineralization which were not considered by previous mining in the early 1990s.

“While 1A is shaping up as an exciting project, we are equally enthusiastic about the excellent potential for identifying relatively shallow depth extensions at the nearby Andrew’s Mine and 5A deposits, as indicated by our recent modeling.

“Considering the broad range of opportunities, drilling will certainly continue for some time at West Kambalda, which represents one of Breakaway’s key projects – offering the potential to be progressed towards feasibility in the shorter term.”

www.breakawayresources.com.au