Tenement - 'Summervale' EL 7281

The Company is pleased to announce some remarkable early drilling results targeting what was a suspected and possibly large extension of the known nickel/cobalt resource of 16 million tonnes @ 0.83% nickel and 0.06% cobalt identified many years ago by then Anaconda Ltd (now Minara Resources Ltd) at Summervale, near Nyngan, N.S.W. In the new zone identified by ground and airborne magnetics every hole intersected strong mineralisation particularly for nickel. The intercepted intervals are considered likely to potentially double in thickness when final assays are received. This is shown in the attached table. The Company regards these results as exciting; the new tenement encompasses a very large structure.

Exploration Licence 7281 'Summervale' is located approximately 25 km north west of Nyngan, NSW, straddling the Mitchell Highway. 

The EL covers the north east limb of a north-south trending arcuate belt of serpentinised ultramafics known as the West Lynn Serpentinite; within the Girilambone-Wagga Anticlinorial Zone.   The linear orientation of the belt suggests emplacement along regional deformation or faults of Alpine-type origin (ophiolite).

The West Lynn Serpentinite is derived from the alteration of a medium grained dunite intruded into the metamorphosed Ordovician Girilambone Group.  It is comprised of phyllites, quartz-mica and chlorite schists, quartzite, laminated siltstone (all with pervasive quartz veins) and  conglomerates of Cambrian-Ordovician age; with numerous late Silurian to early Devonian intrusives of ultramafic to intermediate composition.   The EL is almost completely covered by alluvium.

The program followed a concept identified by our Exploration Manager, Dr Sanja Van Huet and her technical assistant, Ms Jane Quinn.  They also supervised the drilling on the ground.  One veteran local geologist, when advised of this discovery said "this thing lay for eons of time undiscovered just waiting (for Jervois) to come!"  Despite quite intensive past airborne geophysics, magnetics etc, no one else previously drilled a test hole. [The writer's comment; our exploration team kept it simple, knew what they were looking for and were not diverted by any search for a "Tritton"* look alike!]

*a copper/gold mine some 170 kilometres from Nyngan

 This discovery is considered very important for Jervois and its shareholders and because of the relatively high grade, also especially important for NSW.  Shareholders should realise that whilst the current nickel laterite locations of Young and Nyngan are both near perfect from an infrastructure perspective, the grade dictates that Westlynn and Summervale, near Nyngan, will potentially become the major nickel asset of the Company.

Hole Number	Northing GDA	Easting GDA	From(m)	To(m)	Interval width(m)	Ni %	Co %
SV1	6523588	501394	43	47	5	0.710	0.027
			49	66	17*	0.328	0.014
SV2	6523584	501513	42	69	27*	0.3173	0.015
SV4	6523584	501313	43	49	6	0.914	0.046
			49	68	19*	0.3290	0.014
SV5	6523584	501213	38	41	3	0.686	0.032
			43	46	3	0.4984	0.017
SV6	6523784	501426	31	41	10	0.922	0.034
including			32	37	5	1.145	0.038
			41	60	19*	0.2643	0.013

*These thick mineralization, although lower grade, are reported because of the possibility of up-grading by physical means (e.g. screening). At this early stage we have no knowledge of the mineralogy of this unit.

Hole Number	Northing GDA	Easting GDA	From(m)	To(m)	Interval width (m)	Ni %	Co%
Na 126	6513807.1	504501.1	45	56	11	0.74	0.052
including			49	52	3	0.91	0.0820
Na 127	6513805.1	504798.6	36	50	14	1.17	0.0705
including			37	45	8	1.39	0.1100
including			38	42	4	1.55	0.1520

Drawn From The Register of Australian Mining for 2007-2008

Deposit	Location	Tonnes (million)	Grade (%Ni/Co)
Minara Resources	WA	21.4	1.05/0.07
Heron	WA	903	0.74/0.05
Ravensthorpe	WA	238	0.68 (Co not quoted)
Young	NSW	167	0.72/0.07
Westlynn/Summervale*(Nyngan)	NSW	16.0+ (indicated)	0.83/0.064

 Of the above, only Minara Resources, a high pressure acid leach operation, remains in production. Ravensthorpe, the latest high pressure acid leach operation, closed down after only a short period of operation. It is clear to all observers that a new, lower cost treatment process is required for nickel laterites.

*Recent drilling at Westlynn and Summervale is yielding drill assay intercepts at 1% nickel or better accompanied by cobalt levels from 0.03% to 0.15%.  More drilling is required to establish final resource tonnes.

 Exploration Drilling September 2009

As a follow up to the previous drill programs,  ground magnetic surveys have been carried out to assist with further exploration drilling at 'Summervale'. Results are in table below.

Hole Number	Northing GDA	Easting GDA	From (m)	To (m)	Interval Width (m)	Ni%	Co%
SV15	6524364	502331	28	31	3	0.96	0.255
SV39	6524466	502333	27	38	11	1.02	0.035
including			29	35	6	1.25	0.034
SV44	6522985	501348	41	54	13	1.41	0.083
including			41	42	1	2.15	0.033
and			43	44	1	2.03	0.264
and			42	45	3	1.89	0.210

The latest drilling results, in combination with those reported on 25 June; appear to have identified a block of continuous mineralisation estimated to be 200 meters wide and 800 meters long. This exploration target doesn't follow the expected magnetic signature and as such was difficult to locate. To reach proper JORC resource status, further exploratory drilling is required