Western Areas announces wide intersections of nickel/copper mineralisation at Lynn Lake, Manitoba



    /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. 27 /CNW/ - Western Areas today
announced encouraging nickel and copper assay results from two diamond drill
holes below the EL Mine at the Lynn Lake Nickel Project in northern Manitoba.
Drill hole LL009 intersected 110m at an average grade of 0.5% nickel, 0.3%
copper and 0.02% cobalt. The estimated true width of the intersection in LL009
is approximately 40m.
    Three diamond drill holes have been completed to date by Western Areas
below the EL mine. All drill holes intersected significant widths of stringer,
vein and disseminated nickel and copper sulphides confirming the continuity of
the mineralisation. Assay results have been received for two of these drill
holes LL007 and LL009, which are summarised as follows:

    
    -   Drill hole LL007: intersected 24m at an average grade of 1.1% nickel,
        0.7% copper and 0.03% cobalt from 126m down hole depth. The
        intersection includes 7m @ 2.1% nickel and 1.2% copper. LLD007
        intersected the main stope of the mine and was terminated at 150m
        depth. An additional drill hole LL010 has been drilled to test
        extensions to the mineralisation below LL007 and assay results are
        pending.

    -   Drill hole LL009: intersected 110m at an average grade of 0.5%
        nickel, 0.3% copper and 0.02% cobalt from 290m down hole depth. The
        intersection includes several higher grade intervals including 3m
        @ 1.7% nickel and 0.9% copper and 3m @ 2.3% nickel and 0.5%
        copper. LLD009 intersected the extension of the EL deposit from
        approximately 50m to 150m below the existing mine stope.
    

    LL007 and LL009 are located on either side of the EL Mine, a vertical
pipe like sulphide deposit hosted in gabbro (Figure 1). Previous underground
mining consists of an open stope which extends from surface to approximately
180m vertical depth. The mine was operated by Sherritt Gordon who produced
approximately 1.0 million tonnes ore at 3.3% nickel and 1.1% copper with
significant cobalt credits. The EL Mine is the highest grade nickel/copper
deposit discovered at Lynn Lake, Canada's third most productive, historic
nickel camp.
    Western Areas has an option agreement to acquire 100% interest in the EL
Mine as well as a large area of mining leases located immediately east and
south of the area held by Canadian listed company Independent Nickel
Corporation (Figure 2). Independent Nickel is drilling a number of gabbro
hosted nickel/copper deposits which occur in a belt extending 4km north of the
EL Mine. Several of these deposits are adjacent to Western Areas optioned
leases.
    Managing Director Mr Julian Hanna said, "while the first assay results
from Lynn Lake are lower grade than our projects in Australia, we are very
encouraged that they confirm the excellent continuity of the mineralisation
below the EL Mine. In addition, we are testing a number of previously
unexplored VTEM targets at Lynn Lake for repetitions of EL Mine type
deposits." Mr Hanna added, "Canada remains a high priority for Western Areas.
The reasons are the quality of our current nickel projects in Manitoba, the
excellent potential for new nickel discoveries and the large investor base
which is available to our company in North America."

    
    Exploration Strategy

    Western Areas is conducting a three phase drilling program at Lynn Lake
with the objective to:

    1.  Evaluate the potential for economic mineralisation adjacent to and
        below the EL Mine. Recent surface and previous underground drilling
        results are being used for this study.

    2.  Test a number of identified VTEM conductors on the eastern side of
        the Lynn Lake mining camp for new deposits of similar type to the
        high grade EL Mine.

    3.  Test for potential extensions to the McBride Lake VMS zinc deposit,
        70km east of Lynn Lake, where approximately 2Mt @ 8% zinc
        mineralisation has been reported.

    The Lynn Lake project forms part of Western Areas strategy to build
significant nickel sulphide and VMS zinc/copper assets in Manitoba. The
Company is evaluating advanced exploration and mining projects in areas with
well established infrastructure and the focus is on projects which have
potential to be brought into production within three years.

    To view Figure 1. Sketch cross section of the EL Mine showing the location
of  LL007 and LL009, please click on the following link:
http://files.newswire.ca/685/Western_Areas_Fig._1.pdf

    To view Figure 2. Sketch geological plan of Lynn Lake, please click on the
following link: http://files.newswire.ca/685/Western_Areas_Fig._2.pdf

    To view Figure 3. Magnetic image of same area with VTEM targets, please
click on the following link:
    http://files.newswire.ca/685/Western_Areas_Fig._3.pdf

    Drill hole coordinates:
    -------------------------------------------------------------------------
                 Collar         Collar         Dip/Azimuth       End of hole
    Hole_ID      Easting        Northing       of drill hole     depth (m)
    -------------------------------------------------------------------------
    LL007        375940.00      6299168.00     -75/300           150m
    -------------------------------------------------------------------------
    LL009        375785.00      6299278.00     -70/123           436m
    -------------------------------------------------------------------------
    

    QA QC STATEMENT: Mr Robert Barwick from Western Areas is responsible for
the verification and quality assurance of the Company's exploration data and
analytical results from the Lynn Lake Nickel Project. Surface diamond drill
hole collar surveys used a Garmin GPS with an error of +/- 5m. Samples of half
core from the drill holes described in this release are prepared and analysed
by ALS Chemex in Vancouver 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 ME-OG62 method. The information
within this report as it relates to exploration results is based on
information compiled by Mr Julian Hanna from information supplied by Western
Areas Offshore Exploration Manager, Mr Robert Barwick. 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:
'Evaluate the potential for economic mineralisation adjacent to and below the
EL 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 Lynn Lake 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. Also, reference in this release to 2Mt @ 8%
zinc mineralisation reported at McBride Lake is based on previous other
company estimates only and does not constitute a Mineral Resource.





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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