WSA announces: Assays confirm high grade nickel discovery 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, Oct. 18 /CNW/ - Formal assay results have
just been received for the first diamond drill hole (WBD 18) at the 'Spotted
Quoll' prospect, 6km south of Flying Fox. Preliminary results from WBD 18
announced on 16 October were 4.6m at 4% nickel (using a portable Niton XRF
analyser).

    
    The assay results of the sulphide zone intersected in WBD 18 are:

        6.2m @ 4.8% nickel       from 119.9m down hole depth, including:
        3.6m @ 6.9% nickel       from 121.5m down hole depth
    

    The assays include values up to 8.3% nickel confirming the high nickel
tenor of the nickel sulphides. Preliminary interpretation of the geology which
is supported by banding in the drill core indicates the intersection has a
true width of approximately 5.5m.

    The assay results are considered to be very significant and suggest
    potential for another nickel deposit of the Flying Fox 'type'.

    Drilling is planned to resume in two weeks or earlier, if a drill rig can
be sourced from elsewhere at the Forrestania Nickel Project. Drilling will
initially test the potential above, along strike and below the intersection in
WBD 18 to a vertical depth of 200m.

    Comparison with other nickel sulphide discoveries

    The intersection of 6.2m @ 4.8% nickel in WBD 18 compares very favourably
with 'discovery intersections' reported from other Western Australian nickel
deposits. Examples include Flying Fox T1 : 6.6m @ 7.9% nickel, Cosmos : 3m @
7.5% nickel, Silver Swan : 2.5m @ 16.7% nickel, Waterloo : 10.7m @ 5.1% nickel
and Miitel North : 5.4m @ 3.3% nickel.
    Spotted Quoll differs from most other high grade nickel discoveries as it
occurs at shallow depth and was intersected in the first drill hole at only
100m vertical depth.

    
    Drill hole coordinates:

    -------------------------------------------------------------------------
                    Collar         Collar         Dip/Azimuth
                    Easting        Northing       of drill       End of hole
    Hole_ID         (GDA94)        (GDA94)        hole           depth (m)
    -------------------------------------------------------------------------
    WBD 18          751,630        6,403,460      -60/270        235
    -------------------------------------------------------------------------
    

    The full report with extended commentary can be viewed at the company
website www.westernareas.com.au.

    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 exploration results,
mineral resources or ore reserves 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
'assay results are considered to be very significant and suggest potential for
another nickel deposit of the Flying Fox 'type'.' 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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