Australian Mines starts capital development at Blair

West Perth-based nickel and gold explorer Australian Mines Ltd will undertake captial development at its Blair nickel mine from July 2, the company has announced.

The full text of a company announcement is pasted below

Australian Mines (ASX: AUZ) is pleased to announce that decline capital development at the Blair nickel mine will be assumed by the Company effective from 2 July 2007. Previously capital development was contracted out to a third party firm.

Given the exciting high grade drilling results intersected at Blair Deeps recently, the confidence in the future of the mine has provided the Directors with the opportunity to implement longer term strategies.

Anticipating the decision to make the transition to owner-operator of the mine, the Company has acquired additional underground mobile equipment over the past 6 months. Following the recent acquisition of a new Atlas Copco M2D twin boom jumbo and reconditioned charge-up machine, the company will assume total control of all development and production activities at the mine.

Commenting on the decision to move to full owner-operator status of the mine, Australian Mines' Chief Operating Officer Mr Brett Young said, "This is a vote of confidence in the ability of the operational staff to put in a more
streamlined workforce with common goals. Besides greater control and flexibility with mining, the move will provide long term cost efficiencies.

"We are looking to the future by committing to using our own people throughout the mining and exploration process".