Emu Nickel NL (ASX:EMU) Quarterly Report For The Period Ended 31 December 2009

Perth, Feb 2, 2010 AEST (ABN Newswire) - Emu Nickel NL (ASX:EMU) is pleased to provide a Quarterly Activities Report for the period ended 31 December 2009.

EMU LAKE (Emu earning 33 1/3%)

Three diamond drill holes; ELD041A, ELD042A and ELD044 were completed during the quarter at Emu Lake, 70km north east of Kalgoorlie. Assay results for ELD042A confirmed the presence of new nickel sulphide occurrences at Binti South, about 1km south of the Binti Gossan (ASX release 6 November 2009).

Significant intersections in ELD042A include:

- 0.21m @ 6.32% Ni and 0.39% Cu from 282.28m
- 1.57m @ 1.17% Ni and 0.41% Cu from 393.43m
including 0.45m @ 2.67% Ni and 0.11% Cu from 393.43m

ELD042A was targeted at a fixed loop EM anomaly and tested several fertile ultramafic contacts. Several nickel intersections were obtained.

Massive sulphides were encountered at a basal ultramafic contact at 282.28m with remobilised sulphide stringers in a footwall felsic volcanic at 393.43m. Blebby and cloud sulphides were found throughout the ultramafics. Significantly, the massive sulphide intersections occur at a similar stratigraphic position to mineralisation intersected in ELD023 (0.27m @ 5.35% Ni) some 300m to the north.

The nickel intersections in ELD023 and ELD042A are very significant as they expand the zone of potentially mineralised contacts at least a further 650m to the south into the joint venture tenements. Very little drilling of the fertile contacts has been carried out in this area and they are largely untested. These new intersections increase the total strike length over which nickel sulphide mineralisation has now been identified at Binti Gossan and Binti South to 1,000m.

It is also noted that most of the RAB and aircore drilling south along strike from the ELD042A intersections are shallow, less than 50m, with the remainder less than 100m deep, leaving the deeper parts of the fertile contacts completely untested.

ELD041A targeted the southern extension of the Binti Gossan mineralisation. Weak cloud sulphides were encountered but no significant intersections were returned.

ELD044 targeted a fixed loop EM anomaly about 3.8km south of the Binti Gossan mineralisation beneath an existing RC hole (ELRC014). Weak cloud sulphides were observed but no significant assays were obtained.

Rock sampling north of the Binti Gossan has identified two samples about 300m apart which are considered to be gossanous (i.e. leached, weathered remnants of metal sulphides) in nature. Sample 6012475 contains 0.36% Ni and 687ppm Cu and sample 6012477 contains 0.12% Ni and 550ppm Cu. These samples are currently being analysed for platinum group elements to confirm a sulphide origin. Both of these areas are considered to be underexplored, having limited or no drilling and both are considered to have nickel sulphide potential.

Xstrata Nickel has advised that its expenditure to date has now confirmed its 662/3% interest and that the joint venture is now a contributing joint venture. Considering the continuing flow of encouraging results from Emu Lake, Emu intends to fund its 331/3% share of this promising venture.

WINDY KNOB (Emu 51%)

Emu Nickel has now earned a 51% interest in the joint venture tenements held by Windy Knob Resources (ASX:WKR). WKR may now elect to contribute to joint venture expenditure or dilute its interest. The joint venture tenements surround the recent copper-zinc-gold-silver volcanogenic massive sulphide (VMS) discovery made by Silver Swan Group (ASX:SWN) at Austin.

During the quarter Emu completed a detailed 28 line-km ground magnetic survey and a fixed loop electromagnetic (EM) survey over the 1km-long Defiance copper-zinc prospect situated about 2km north east of Austin. Preliminary results indicate that no pronounced conductors were identified by the EM survey. Modelling of the ground magnetic survey results is in progress, to more closely define magnetic targets thought to be derived from magnetite alteration associated with VMS-style mineralisation. RC drilling at Defiance to test these magnetic targets and to follow up anomalous copper and zinc values intersected by aircore drilling in the previous quarter is anticipated to commence in March.

KAMBALDA WEST (Emu earning 30%)

A 103-hole, 2,493m RAB drilling programme was completed during the quarter. The drill programme targeted a number of coincident magnetic and VTEM anomalies situated to the west and south west of the Queen Victoria Rocks nickel sulphide occurrences. The holes were drilled through transported cover and into underlying Archean rocks. The reconnaissance drilling intersected ultramafic, mafic, felsic meta-sedimentary and granitic rock types, confirming the presence of greenstone sequences within a granite terrane.

The drilling results indicate that the greenstone sequences are extensively intruded by granitic rocks, possibly similar to the setting of the Forrestania nickel district to the south east. Some of the granitic rocks contain magnetite which may explain some of the target magnetic anomalies. No significant nickel or gold values were returned by the drilling. A strong VTEM anomaly with a modelled conductor deeper than the RAB drilling remains to be tested.

For the complete Emu Nickel Quarterly Report for the period ended 31 December 2009, please click the link below:

http://www.abnnewswire.net/media/en/docs/62194-ASX-EMU-478343.pdf

Contact

Roger Thomson Technical Director Tel: +61-8-9226-4266 Mob: +61-419-969-183 Email roger@emunickel.com.au George Sakalidis Managing Director Tel: +61-8-9226-4266 Mob: +61-411-640-337 Email george@emunickel.com.au