Mirabela Santa Rita production update

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TSX: MNB, ASX: MBN

PERTH , Australia , Nov. 20 /CNW/ - Mirabela Nickel Limited (TSX: MNB, ASX: MBN) is pleased to announce that the commissioning of the Santa Rita processing plant has progressed to expectations with only minor rectification issues identified to date. All mechanical and electrical components have run to the current installed nameplate capacity of 4.6 million tonnes per annum.

The focus of the processing plant operations team is now moving from commissioning to ramp up and optimization. All construction personnel have now been demobilized.

Over 1,000 tonnes of nickel concentrate has been produced and deliveries of concentrate have commenced to Votorantim. Concentrate stocks are expected to increase as transport and logistics arrangements are finalized and scaled up to match the increasing production levels.

Mining in the open pit continues with the current mining fleet. However, expected delays in the delivery of the expanded mining fleet will impact on the mining ramp up. Additional equipment will arrive from December 2009 .

    
    For and on behalf of the Board

    Ian Purdy                             Craig Burton
    Chief Executive Officer               Corporate Director
    

Background

Mirabela Nickel Ltd owns 100% of the world class Santa Rita nickel sulphide project and is listed on the Australian and Toronto stock exchanges. With a JORC/NI 43.101 proven and probable open cut reserve of 121Mt grading 0.60% Ni for 726,000t of contained Ni, Santa Rita is the largest nickel sulphide discovery worldwide in over a decade.

Construction of Santa Rita is now complete and commissioning is underway. The operation is expected to ramp-up to a capacity of 6.4Mtpa of ore producing 26,000tpa of nickel in concentrate. Current reserves support a mine life of at least 19 years.

For further information: Australia contact: Nick Poll, Executive Director, Telephone: [phone], [email protected]; UK and Europe contact: Alex Buck, Buckbias, Telephone: [phone], [email protected]