European Nickel ends drilling in Albania

LONDON, Dec. 11 – European Nickel said Tuesday that it had completed a two phase 8,500 metre RC and diamond drilling program, which started in Oct. last year, at its Korce exploration permit in southeast Albania. The exploration permit, granted to European Nickel’s wholly owned local subsidiary, covers approximately 55 square kilometers. The geology of the permit area consists of a complex laterite structure overlain by Tertiary sediments and calcareous conglomerates and containing ferronickel and nickel silicate horizons, which are themselves overlain by iron-nickel laterites. The company said 23 holes were drilled on a 1 km x 400 m grid delineating two nickel laterite areas covering a total area of approximately 4 km2. Seven holes have confirmed the mineralization in these two areas with an average thickness of 6.3 m and an average nickel grade of 1.01 %. European Nickel said following the completion of the initial drill program, drilling will be carried out during the 2006/2007 field season on a tighter grid of 400 m x 400 m. This program will seek to prove the full extension of the nickel mineralization and, at the same time, an exploration adit will be constructed to recover a bulk sample of ore for rock mechanic and bulk acid leach tests. The bulk tests will be conducted at ENickel’s test plant facilities at its Caldag site in Turkey.