ZNI Zambezi Nickel

RNS Number:6556Z
Zambezi Nickel Ltd
13 March 2006

13 March 2006



                 2006 Nickel Exploration Drill Season in Zambia



  * Diamond drill programme contract signed - commencement April 2006

  * 15 high priority targets defined from 2005 helimag results

  * New prospect identified

  * Target JORC nickel resource - Q4 2006

Zambezi Nickel Limited ("Zambezi" or the "Company") (AIM Code: ZNI), the
AIM-quoted African nickel exploration and development company, today announces
that a definitive contract has been signed with Capital Drilling Pty Limited for
the forthcoming diamond-drilling programme at its Mitaba Project in Zambia. The
entire programme is expected to be carried out between April and August 2006.

Helimag results

15 high priority target features were defined following the results of the
high-resolution helicopter-borne magnetometry (helimag) survey flown during
2005. The target features for disseminated nickel sulphides are located on the
two main meta-komatiite lava-flow complexes at the Mitaba Project. The most
intense helimag results define the main lava channels where disseminated
sulphides can occur.

The high priority targets have been selected on the basis that they all satisfy
the following criteria:

  * Target area has suitable dimensions for possible open pit mining should
    economic mineralisation be found

  * Wide intervals of sampling results that exceed 0.5% nickel in trenches

  * Confirmation by mapping that the appropriate nickel bearing host-rock type
    coincides with the magnetically-indicated targets

The identification by microscopic mineralogy of pentlandite (the main nickel
sulphide mineral) in two specimens of host rock is another positive indication.

The helimag has also revealed a new prospect towards the eastern end of the
Mitaba Hill Complex, which is now referred to as Mitaba Hill East.

Zambezi has committed to a substantial diamond-core drilling programme that is
designed to test eight targets at the Mitaba Hill and Mitaba Hill East
Prospects, and seven at the Mitaba West Prospect. Each of the targets will be
tested initially by one hole, with succeeding holes being contingent upon
positive results. This increases the programme to 28 holes for a total of 4,540
metres, of which 2,540 metres will be required for first-priority holes. The
spacing of the drilling traverses is designed to permit the estimation of
JORC-compliant, inferred-category resources from positive results. Besides
fulfilling the main sampling objective, the drill cores will also provide
metallurgical information regarding processing and recovery characteristics of
any significant mineralisation.

Results have been received from the helicopter-borne time-domain electromagnetic
(VTEM) survey of the Mitaba and Paulwi Project areas, carried out by the
Canadian contractors, Geotech Limited, during 2005. This was designed to detect
conductive massive sulphide bodies, for which there was some theoretical
justification. No late-time responses, which could be generated by such bodies,
were encountered at either of the project areas. However, the theoretical
expectation that a zone of fine, disseminated sulphides could occur at the base
of the gabbroic portion of the Paulwi intrusion still requires mapping and
detailed sampling traverses for platinum group elements.

Commenting on the announcement, Paul Rankine, CEO of Zambezi said, "Now that we
have processed all the data from last year's field season, we believe Zambezi is
in an excellent position to move forward and drill test the disseminated nickel
sulphide targets at Mitaba. We also believe that there is the potential to
generate a JORC compliant nickel resource on this property by the fourth quarter
in 2006. Shareholders should note that the company is also actively examining
opportunities for possible acquisitions of nickel prospects both in Zambia and
other SADC countries."

For more information, please contact:

Paul Rankine                              Laurence Read

Zambezi Nickel Limited                    Conduit PR

Tel:    +44 1428 656 449                  Tel:    +44 20 7429 6666

Mob:    +44 795 280 7110                  Mob:    +44 797 995 5923

A full report including figures is available on the Zambezi website at
www.zambezinickel.com

The information in this report that relates to Exploration Results is based on
information compiled by Mr Noel Sheppy, who is a Member of The Australasian
Institute of Mining and Metallurgy. Mr Sheppy is employed by CSA Australia Pty
Limited. Mr Sheppy has sufficient experience which is relevant to the style of
mineralisation and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2004 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Sheppy
consents to the inclusion in the report of the matters based on his information
in the form and context in which it appears.

ADDITIONAL INFORMATION

  * African focused pure nickel exploration/development company

  * Admitted to London's AIM Market in October 2005, raising #1.6 million

  * Exploration rights over 3 prospects on 2 project areas (Mitaba & Paulwi)
    in Zambia

  * Identified a major nickel sulphide bearing structure which has been
    trenched & drilled (Mitaba)

  * Exploiting shared cost/infrastructure opportunities with AIM quoted
    Zambezi Resources Limited

  * Strong position from which to acquire nickel prospects in the region

  * Strategy to fast-track regional nickel prospects into production

  * First stage target - JORC Resource - Q4 2006



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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