Western Areas announces stunning nickel intersection at Spotted Quoll



    /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, Feb. 1 /CNW/ - The Board of Western Areas
is pleased to announce results for the best drill hole intersection at Spotted
Quoll to date. WBD 28 intersected 8.7m @ 11.4% nickel from 88.2m down hole
depth. The intersection has an estimated true width of 8m and is the highest
grade nickel zone at the shallowest depth discovered at the Forrestania Nickel
Project to date.
    Preliminary assay results from WBD 28 included in the following table are
46% higher than initially estimated using a Niton portable XRF analyser
(8.6m @ 7.8% nickel) announced on 21 January. All individual assays in WBD 28
are between 10.0% and 12.3% nickel

    
          -----------------------------------------------------------
                          From (m)    To (m)  Interval (m)  Nickel %
          -----------------------------------------------------------
           WBD028          88.18      89.10      0.92       10.75
          -----------------------------------------------------------
                           89.10      90.00      0.90       10.65
          -----------------------------------------------------------
                           90.00      90.90      0.90       10.85
          -----------------------------------------------------------
                           90.90      91.90      1.00       12.00
          -----------------------------------------------------------
                           91.90      92.90      1.00       12.30
          -----------------------------------------------------------
                           92.90      93.90      1.00       12.35
          -----------------------------------------------------------
                           93.90      94.90      1.00       11.20
          -----------------------------------------------------------
                           94.90      95.90      1.00       11.95
          -----------------------------------------------------------
                           95.90      96.90      1.00        9.98
          -----------------------------------------------------------
           Intersection                         8.72m       11.35
          -----------------------------------------------------------


    Discussion:

    Recent results at Spotted Quoll are very significant for the following
    reasons:

    1.  The deposit occurs at shallow depth, contains exceptional nickel
        grades and shows very good continuity over the area tested to date.
        Spotted Quoll is open in all directions.

    2.  The opportunity exists to define a substantial mineral resource in a
        relatively short time and develop a potential openpit mine. Two drill
        rigs are on site defining a mineral resource to 200m depth and a
        third drill rig is due mid February to test below 200m.

    3.  Spotted Quoll occurs on the same geological contact and in a similar
        setting as Flying Fox. It highlights the excellent potential for new
        nickel discoveries below the flat lying granite intrusions which
        extend at least from Flying Fox to Willy Willy.

    4.  The Flying Fox granite intrusions probably extend within Western
        Areas tenements along the 25km long Western Nickel Belt from the
        Beautiful Sunday deposit (0.5Mt @ 1.4% nickel) at the northern end
        to the Arrowhead prospect at the southern end.

    5.  The intersection in WBD 28 compares very well with discovery
        intersections from Jubilee's Cosmos nickel mine (including
        8.3m @ 11.1% nickel and 20m @ 10.0% nickel) and at Flying Fox
        (including 6.6m @ 7.9% nickel and 21.4m @ 7.8% nickel).

    Drill hole coordinates:

    -------------------------------------------------------------------------
    Hole_ID       Collar Easting  Collar Northing  Dip/Azimuth    End of hole
                  (GDA94)         (GDA94)          of drill hole  depth (m)
    -------------------------------------------------------------------------
    WBD 28        751,630         6,403,500        -60/270        140m
    -------------------------------------------------------------------------
    

    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, down
hole 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 exploration results
or mineral resources is based on information compiled by Mr Julian Hanna.
Mr Hanna is a member of AusIMM and is a full time employee of the Company.
Mr Hanna has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration 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 Hanna consents 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. An example of a
forward looking statement in this release is: 'The opportunity exists to
define a substantial mineral resource in a relatively short time and develop a
potential openpit mine'. 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 9334 7777, Email: jhanna@westernareas.com.au; Craig
Oliver, Finance Director - Western Areas NL, Telephone +61 8 9334 7777, 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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