Emu Nickel NL (ASX:EMU) Announce Possible Mineral Extensions At Windy Knob Joint Venture Tenements

Brisbane, Oct 13, 2010 AEST (ABN Newswire) - Emu Nickel NL (ASX:EMU) has completed a four-hole, 1211m RC drilling programme at Austin South, Defiance and 4E near the Austin copper-zinc-gold-silver discovery near Meekatharra, WA. The targets at Austin South and 4E comprise discrete magnetic anomalies similar to that associated with the Austin volcanogenic massive sulphide (VMS) deposit of Silver Swan Group. The target at Defiance comprises a 1km-long magnetic anomaly with anomalous copper and zinc values associated with a silica-magnetite unit identified in previous shallow drilling.

Cross sections of WKRC4 at Defiance and WKRC5 at 4E are shown in Figures 2 and 3 respectively (see link at the bottom of the release). The geology and alteration suggest that the sequence may be overturned (i.e. interpreted chloritic footwall alteration is now in the hanging wall) similar to the sequence at Austin. The silica-magnetite-sulphide horizon anomalous in copper and zinc also appears to be similar to that associated with the VMS mineralisation at Austin and may be a fold or thrust repeat of this horizon.

Downhole electromagnetic (DHEM) surveys were completed on three holes (WKRC4 was blocked and could not be surveyed). The DHEM in drill hole WKRC-1 at Austin South and WKRC3A at Defiance detected several minor in-hole or near-hole conductors consistent with disseminated or stringer sulphides. The DHEM in drill hole WKRC5 at 4E identified moderately strong in-hole and off-hole conductors interpreted to be related to flat lying stringer sulphides.

Emu Nickel is encouraged by these results which indicate possible extensions of the fertile horizon which hosts the Austin VHS deposit into the Windy Knob joint venture tenements. In addition, drilling at the nearby Austin deposit by Silver Swan continues to indicate that this VMS system plunges towards the joint venture tenement boundary at depth, providing an attractive deep target for Emu Nickel. Further testing of these targets is being planned.

For the complete Emu Nickel announcement including figures and tables, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/63934-ASX-EMU-509210.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