Perth, Oct 2, 2008 (ABN Newswire) - Emu Nickel NL (ASX:EMU) is pleased to announce the commencement of a 3,000m air core drilling program. One of the drill traverses will test the interpreted southern extension of the host banded iron formations of the Portman Limited Koolyanobbing mine operations. In addition a reconnaissance drilling traverse will be completed 3km to the east of the Koolyanobbing mine operations where E77/1212 abuts the mining area. The traverse will test subtle magnetic features for possible detrital magnetite concentrations.

A further three traverses will test the gold anomaly outlined by soil sampling (ASX Release 22 July 2008) and will commence in the next few days. This will assess the significance of the 1.5km long anomaly which peaks to 300ppb Au.

A VTEM survey for the area is scheduled for October and will focus on the ultramafic contact zone to assess the prospectivity of this area.

Exploration

Emu Nickel has completed geochemical sampling over the Bronzite, Beetle Lake, and Dingo Dam tenement areas west and northwest of Norseman. This work has successfully enhanced the prospectivity of these tenements and outlined drilling targets for future assessment.

Dingo Dam (E15/0958)

The VTEM survey has identified two conductors within this tenement; one coincident with the magnetic stratigraphy at the southern extent of the tenement with the other being a discrete anomaly.

Soil geochemical sampling covered the entire tenement using 500m x 100m sample spacing. Low level gold responses (maximum 7 ppb Au) occur coincident with one of the VTEM anomalies and the other as a discrete response. Other gold responses occur coincident with the magnetic stratigraphy in the southern portion of the tenement and as distinct zone in the north of the tenement.

Multi-element responses (As, Bi, Mo) occur in association with the second VTEM anomaly and as coherent but separate continuation of the northern gold response.

Beetle Lake (E63/1098)

A VTEM survey was completed over this tenement and identified two conductors. To refine and understand the significance of these anomalies broad spaced (500m x 500m) soil geochemical sampling was undertaken over the southern portion of the tenement.

This has resulted in the identification of low level gold responses correlating with the VTEM anomaly and coincident gold (maximum 4ppb Au) and multielement (As, Bi, Mo) responses within the area.

Bronzite (E63/1099)

Broad spaced soil geochemical sampling on 500m x 500m spacing over the tenement identified low level gold responses (maximum 6ppb Au) correlating with the magnetic stratigraphy and the second order VTEM anomaly identified within the tenement.

It is proposed to drill test the areas of the VTEM anomalies and the geochemical responses once the necessary approvals are obtained.