New Morning and Daybreak resource upgrade lifts Forrestania above 208,000 tonnes contained nickel



    /THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
    FOR DISSEMINATION IN THE U.S./

    ASX & TSX: WSA

    WEST PERTH, Western Australia, April 13 /CNW/ - The Board of Western
Areas is pleased to announce a major upgrade in mineral resources at the New
Morning and Daybreak nickel deposits located 3km south of the Flying Fox mine.
Current mineral resources at New Morning and Daybreak contain 30,700 tonnes
nickel.
    The revised mineral resources include 1.7Mt of disseminated sulphide at
an average grade of 0.9% nickel overlying massive sulphide deposits with an
average grade of 3.7% nickel. The revised mineral resources come from a review
of all New Morning and Daybreak data prior to the commencement of drilling
during this quarter.

    
    The revised mineral resource highlights several opportunities for further
growth at Forrestania:

    1.  New Morning / Daybreak will now progress to a scoping study which
        will review the potential to develop a third nickel mine, after
        Flying Fox and Diggers South.

    2.  Drilling will test the potential for a high grade Flying Fox
        "T5 type" deposit underlying the granite intrusion, below
        New Morning / Daybreak.

    3.  With the inclusion of New Morning / Daybreak, high quality resources
        at Forrestania now exceed 208,000t contained nickel.

    The revised mineral resources at New Morning and Daybreak include two
categories of mineralisation.

    A)  Massive sulphide. Approximately 415,000 tonnes at an average grade of
        3.7% nickel occurring as two deposits 400m apart. New Morning occurs
        on the basal contact and Daybreak occurs within the underlying
        sediments.

    B)  Disseminated sulphide. Approximately 1.7 million tonnes at an average
        grade of 0.9% nickel overlying the massive sulphide deposits.
    

    Details of each category are included in tables that can be seen by
viewing the full version of this press release which is available on the WSA
website at www.westernareas.com.au
    Western Areas Managing Director, Mr Julian Hanna said: "Since the
discovery of Flying Fox, the New Morning and Daybreak deposits have been put
on hold. With Flying Fox now in production and the pre feasibility study at
Diggers South well advanced, it is time to progress these deposits towards
production and test for high grade sulphides below the current drilling."
    The potential for a major discovery of the Flying Fox "T5 type" below New
Morning and Daybreak remains untested. This is supported by an intersection at
Daybreak (announced previously) of 20m @ 6.8% nickel which has similar width
and tenor to intersections at the Flying Fox T1 and T5 ore bodies. A
comparison of the long section of New Morning / Daybreak with Flying Fox
illustrates similarities in geology and scale.

    
    Revised Mineral Resource Parameters

    Massive Sulphide Mineralisation:
    New Morning / Daybreak ((greater than) 2.0% nickel cutoff)

    -------------------------------------------------------------------------
    Tonnes       Grade Nickel    Contained Nickel             Classification
                      %              tonnes                             JORC
    -------------------------------------------------------------------------
      321,800        3.7             12,010       Indicated Mineral Resource
    -------------------------------------------------------------------------
       93,100        3.5              3,260        Inferred Mineral Resource
    -------------------------------------------------------------------------

    Disseminated Sulphide Mineralisation:
    New Morning / Daybreak ((greater than) 0.5% nickel cutoff)

    -------------------------------------------------------------------------
    Tonnes       Grade Nickel    Contained Nickel             Classification
                      %              tonnes                             JORC
    -------------------------------------------------------------------------
    1,069,800        0.9              9,650       Indicated Mineral Resource
    -------------------------------------------------------------------------
      659,200        0.9              5,780        Inferred Mineral Resource
    -------------------------------------------------------------------------

    Resource Parameters: Mineral Resource estimates were completed by Mr John
Haywood of independent consultants Ravensgate.

    Massive sulphide and disseminated mineralisation were modelled as 3D
solids. A block model was created using "Datamine Studio" software, filling
the solids with cells and sub-cells. Geological continuity of the
mineralisation at New Morning and Daybreak is good continuity of width and
grade.
    Note: The mineral resource estimates for the massive sulphide category for
New Morning and Daybreak exclude any shallow oxide or transitional nickel
sulphide mineralisation.

    -------------------------------------------------------------------------
    Item                      Details                               Comments
    -------------------------------------------------------------------------
    Cells Size      5m (X) by 15m (Y) by 10m (Z)  Sub-celled to match solids
    -------------------------------------------------------------------------
    Interpolation
     Method         Ordinary Kriging              Validated by ID2 estimate
    -------------------------------------------------------------------------
    Search Radii    Variable by domain            Nominal 45m by 45m by 7m
    -------------------------------------------------------------------------
    Nominal Drill
     hole spacing   30m by 20m to 60m by 30m
    -------------------------------------------------------------------------
    

    Surface diamond drill hole collar surveys used differential GPS; downhole
surveys used a gyroscopic instrument; a comprehensive density database was
utilised; there is high assay confidence with systematic QA/QC procedures; a
validated acQuire database. An alternate inverse distance squared estimate was
made to validate the ordinary kriged resource. A validation of drillholes
against block model grades was made.

    QA-QC STATEMENT: Mr Adrian Black from geological consultants Newexco
Services Pty Ltd ("Newexco") is responsible for the verification and quality
assurance of the Company's exploration data and analytical results from the
Forrestania Nickel Project. Surface diamond drill hole collar surveys used
differential GPS, downhole surveys employed a north seeking gyroscopic
instrument; comprehensive density database; high assay confidence with
systematic QA/QC procedures; and validated database. Samples of quarter core
from the drill holes described in this release are prepared and analysed by
ALS Chemex Ltd laboratory in Perth for nickel, copper, cobalt and other
elements. Core samples are crushed and pulverised to 90% passing 75 microns
then analysed for nickel by ore grade determination using the ALS OG-62
method. Assays standards are routinely inserted in the sample stream by
Newexco for quality control.
    The information within this report as it relates to mineral resources and
mine development activities is based on information compiled by Mr John
Haywood of Ravensgate, Mineral Industry Consultants (mineral resources), and
Mr Julian Hanna of Western Areas NL. Mr Haywood and Mr Hanna are members of
AusIMM and Mr Hanna is a full time employee of the Company. Mr Haywood and Mr
Hanna have sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity
which they are undertaking to qualify as Competent Persons as defined in the
2004 Edition of the 'Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves.' Mr Haywood and Mr Hanna consent to the
inclusion in the report of the matters based on the information in the form
and context in which it appears.

    FORWARD LOOKING STATEMENT: This release contains certain forward-looking
statements. These forward-looking statements are subject to a variety of risks
and uncertainties beyond the Company's ability to control or predict which
could cause actual events or results to differ materially from those
anticipated in such forward-looking statements.
    This announcement does not include reference to all available information
on the Company or the Forrestania Nickel Project and should not be used in
isolation as a basis to invest in Western Areas. Any potential investors
should refer to Western Area's other public releases and statutory reports and
consult their professional advisers before considering investing in the
Company.
    For Purposes of Clause 3.4 (e) in Canadian instrument 43-101, the Company
warrants that Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability.





For further information:

For further information: Julian Hanna, Managing Director - Western Areas
NL, Telephone +61 8 9486 7855, Email: jhanna@westernareas.com.au; Craig
Oliver, Finance Director - Western Areas NL, Telephone +61 8 9486 7855, Email:
coliver@westernareas.com.au; Ann Nahajski, Investor Relations - Porter
Novelli, Telephone +61 8 9386 1233, Email: anahajski@wa.porternovelli.com.au,
Or visit: www.westernareas.com.au

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