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Brilliant Mining – significant high grade results from 25% owned Lanfranchi Nickel Mine

Published: 15:00 27 Oct 2008 AEDT

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In an otherwise dull market Canadian Venture listed Brilliant Mining Corp. (BMC: TSXV) has reported significant high grade results from the Deacon down-plunge resource definition drill program at the Company's 25% owned Lanfranchi Nickel Mine. Lanfranchi is located in the world class Kambalda Nickel District of Western Australia. Significant Drill Intercepts Include 2.87%Ni over 24.6m and 3.27%Ni over 25.8m.

The Deacon down-plunge extensional drill program has completed the first 17 holes, across three drill sections, targeting the existing 12,200 tonnes (26.9 million lbs) of Ni metal currently classified as an Inferred Mineral Resource at the base of the Deacon orebody. The intent of this first phase of the drill program is to upgrade the Inferred Resource to an Indicated Resource and hence allow subsequent conversion to Ore Reserves. This drill campaign has the potential to significantly add to the mine life in the Reserve category.

It is common for investors to question continued development efforts in an environment of weak nickel prices, which in fact has even prompted major nickel producers to cut down their production. Xstrata Nickel announced that it is shutting down its Falcondo nickel operations in the Dominican Republic because of "difficult market conditions." Such measures however are likely to help nickel rebound at some stage.  

This makes companies such as BMC interesting stories and its continued development endeavours therefore strengthen its investment case. BMC has its assets in prolific nickel producing areas such as the Kambalda Nickel District. The area is home to few other nickel companies such as Australian listed Independent Nickel and Panoramic Resources. In addition, BHP Billiton also has an operation in the Kambalda Nickel District.

BMC already has its planned the second phase of drilling, which is expected to target a further 300m down plunge of the Inferred Resource limits with the intent to add new material into the resource base at the mine. A high level of confidence exists for the down plunge continuation of the Deacon mineralisation as evidenced by the strong geophysical conductor identified by parallel EM drilling performed during the last quarter of 2007.

Industry sources expect nickel prices to strengthen on the back of production cuts. In addition, as Chinese steel makers resume their operations after the Olympics, demand for nickel is expected to take off. Chinese authorities had forced factories including steel companies to stay closed during the Olympics in their attempts to maintain cleaner air. These factories have already resumed their operations and the current weakness in base metal prices are expected to be short lived.

During our previous discussions with the management the CEO, John Williamson opined that relatively high grades of the deposit would enable BMC to withstand low Nickel prices and remain profitable. It certainly appears to be the case as indicated by a steep increase in the Operating cash flow for the nine months ended June 30, 2008 ($14 million Vs $0.58 million comparable period last year). Falling A$ is likely to help BMC even further in its costs going forward.

About Brilliant Mining Corp.
Brilliant Mining Corp. is focused on the production, development and exploration of nickel opportunities world wide. The Company currently has a 25% interest in the producing Lanfranchi Nickel Mine in Western Australia and the Michikamau Ni-Cu-Co-PGE property in central Labrador.

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