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ASX & TSX: WSA
WEST PERTH, Western Australia, June 8 /CNW/ - Western Areas is pleased to
announce it has received approval for an additional $A10M Pre-feasibility
Facility to be added to the existing $A80M Project and Corporate Facility with
Australian and New Zealand Banking Group Limited (ANZ). This facility will be
used to assist funding four diamond drill rigs each month for an expanded
exploration program at the Forrestania Nickel project. Specifically, the funds
can be used for:
1. Flying Fox Mine - infill mineral resource and ore reserve drilling
targeting T1\T2 extensions, T4, T5 extensions and testing the
potential for T6.
2. Diggers South - resource drilling and feasibility studies at Diggers
South targeting extensions to both the large Diggers South mineral
resource, the adjacent Diggers Rocks mineral resource and a potential
cutback to the Diggers Rock open pit.
3. New Morning\Daybreak - resource drilling, feasibility studies and
drilling below the main horizontal granite intrusion targeting the
potential for deposits similar to the large, high grade T4\T5
deposits at Flying Fox.
In announcing the extended facility, Managing Director Mr. Julian Hanna
said he was pleased ANZ recognised the quality and advanced nature of these
projects and has moved to assist in funding the Company's future growth. "The
Company's goal at Forrestania is to have significant, overlapping, long life
production from three mines by 2010" said Mr Hanna. "The Flying Fox mine is
performing very well at this stage and we expect a major jump in production
when the large T1 ore body is developed during the next few months."
"While our main focus remains on these three projects, the new facility
means that Western Areas can use other funds to focus on exploring other
priority targets at Forrestania and at our other advanced nickel projects in
Western Australia and Canada," said Mr Hanna.
Western Areas' other priority targets at Forrestania are listed in an
announcement on 4 April 2007 and summarised in the March 2007 Activities
In Canada, the Company's priorities are the 100% optioned projects at
Lynn Lake (where drilling is underway) and McBride Lake as well as at the
Maskwa and Mayville nickel/copper deposits owned by Mustang Minerals in
Manitoba. Western Areas has rights to a 19.9% interest in Mustang Minerals.
In March, Western Areas ordered a fourth diamond surface rig to add to
the existing one underground and three surface diamond rigs. The Company is
also seeking a fifth surface diamond rig with the aim of a total six diamond
rigs at Forrestania from July 2007.
Existing $A80M ANZ Project and Corporate Facility
On 22 December 2006, Western Areas announced it had refinanced existing
facilities with and $A80M Project and Corporate Facility with ANZ. This
facility fully funded the development of Flying Fox down to T5. Importantly,
this facility included many features typical of corporate lending arrangements
including no mandatory hedging and the capacity to pay dividends out of 2008
profits. This facility is drawn to $A42M and Western Areas currently has cash
About Western Areas
Western Areas is an Australian based nickel sulphide explorer and
producer. The company has a current market capitalisation of approx A$950M
(C$850M) and is one of only two nickel companies listed on both the Australian
and Toronto Stock Exchanges. (ASX & TSX code: WSA)
The company's core asset is the 100% owned 90km long Forrestania Nickel
Project, located 400km east of Perth, Western Australia. The primary
discovery, Flying Fox, is one of the highest grade nickel mines in the world.
The current total mineral resource comprises approximately 1.4M tonnes at an
average grade of 6.5% nickel containing 90,500 tonnes of nickel. Underground
production from the Flying Fox mine commenced in October 2006 with forecast
product targeted at 13,000 tonnes of nickel in concentrate per annum by 2010.
A pre-feasibility study is well advanced to bring a second mine into
production at Diggers South, 40km south of Flying Fox. If positive, Diggers
South has the potential to add in excess of 5,000 tonnes of nickel in
concentrate per annum to overlap Flying Fox production to increase total
targeted production to 18,000 tonnes of nickel in concentrate per annum by
2010. Previously announced mineral resources at Diggers South contain
approximately 80,300 tonnes nickel and drilling to extend this mineral
resources is ongoing.
Exploration continues to remain a top priority for Western Areas with
total mineral resources at the Forrestania Nickel Project recently revised to
contain approximately 208,600 tonnes nickel (refer to recent announcements).
In addition to the focus on expanding Flying Fox and Diggers South mineral
resources, there are number of high priority targets to be tested along strike
from Flying Fox - notably below the current limit of drilling at the New
Morning/Daybreak deposits, 3km south of Flying Fox. Additional potential also
exists along the eastern nickel belt at Forrestania and at WSA's other
exploration projects in the Forrestania region. Western Areas also recently
commenced drilling at the Lynn Lake nickel project in Manitoba, Canada.
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.
DISCLAIMER: The information within this report was compiled from
information previously published by Western Areas Ltd or Mustang Minerals Inc.
Any potential investors should refer to Western Area's and Mustang Minerals
Corp's other public releases and statutory reports and consult their
professional advisers before considering investing in the Company.
For further information:
For further information: Enquiries - visit www.westernareas.com.au or
contact: Julian Hanna, Managing Director - Western Areas, Telephone: +61 8
9486 7855, Email: firstname.lastname@example.org; Craig Oliver, Finance Director -
Western Areas, Telephone: +61 8 9486 7855, Email: email@example.com;
Ann Nahajski, Investor Relations - Porter Novelli, Telephone +61 8 9386 1233,
Email: firstname.lastname@example.org; Eric Tang, Investor Relations -
Porter Novelli, Telephone (416) 423-6605, Email: email@example.com