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ASX & TSX: WSA
WEST PERTH, Western Australia, Nov. 14 /CNW/ - On 1 November Western
Areas NL ("WSA") and Troy Resources Ltd ("TRY") announced a Joint Venture to
explore for nickel in the Sandstone greenstone belt, 500km north of the 100%
owned Forrestania Nickel Project. The agreement relates to a large area of
nickel prospective tenements that have been explored for gold but not for
nickel since the early 1970's. Troy is currently mining gold on the tenements
and retains all mineral rights except for nickel and related minerals, which
is the focus of the joint venture with WSA. The main terms of the Sandstone
joint venture were summarised in the release on 1 November.
Following preliminary field work the company believes that the Sandstone
Project complements WSA's strategy to consolidate the nickel potential of the
central province of the Yilgarn Craton in Western Australia. The Company now
holds nickel interests covering seven key greenstone belts in this region.
Although Western Areas' main focus is at the Forrestania Nickel Project,
substantial exploration programs are also in progress on most of the regional
projects. Western Areas interests in this region are:
- Forrestania - 100% covering highly prospective 90km long nickel belt
- Koolyanobbing - 100% plus earning 70% in nickel interests in
- Mt Finnerty - earning 65% interest in nickel rights in JV with Reed
- Sandstone - earning 70% interest in nickel rights in JV with Troy
- Lake King - earning 70% interest in nickel rights in JV with Swan Oak
- Mt Alexander - diluted to 25% interest in JV with BHP Minerals
- Bullfinch North - diluted JV interest (with clawback rights) with
The geological sequence which hosts the high grade nickel sulphide
deposits at Forrestania appears to extend throughout the central Yilgarn
province. This region has never previously been consolidated and has not been
subject to the level of nickel exploration compared with the adjacent Kambalda
and Leinster-Mt Keith nickel provinces. Kambalda and Leinster-Mt Keith have
dominated Australian nickel production for 35 years.
A location map showing Western Areas nickel interests in the central
Yilgarn Craton and the major sulphide and laterite nickel projects in the area
is included in this release (Figure 1).
Managing Director, Mr Julian Hanna said "The Sandstone project is one of
the largest remaining areas in the highly prospective Yilgarn Craton which
hasn't been subject to systematic nickel exploration using modern techniques
and geological concepts. It is also located only 120km west of Australia's
most productive nickel province, Leinster-Mt Keith."
Sandstone Nickel Project
The Sandstone tenements cover a structurally complex, shallow dipping
sequence of nickel prospective ultramafic lavas, basalts, banded iron
formation and granite intrusions. The area was last explored for nickel by
Kennecott between 1969 and 1972. Kennecott identified three nickel prospects
in the central part of the project and conducted limited drilling at that
Western Areas is planning to commence geochemical field work at the end
of November. A large number of shallow drill holes (drilled by earlier
explorers for gold) will be analysed for nickel. This will be followed by a
state of the art surface geophysical program comprising IP and EM which is
expected will generate drilling targets with potential for nickel sulphides.
Western Areas Exploration Teams
The regional exploration programs at Sandstone, Koolyanobbing, Mt
Finnerty and Lake King are operated by a very experienced group of senior
staff and contractors. Recent success as a result of drill testing geophysical
targets by this team includes the first recorded discovery of nickel sulphide
at the Lake King greenstone belt and extensions to the Jocks Dream nickel
sulphide mineralisation at Koolyanobbing.
The exploration programs at Forrestania are operated by Western Areas'
geological consultants Newexco and the exploration programs at Lynn Lake and
McBride Lake in Manitoba are operated by the Company's Canadian based
Diamond drilling programs are currently in progress at Flying Fox,
Diggers South, Spotted Quoll, Koolyanobbing and at Lynn Lake in Manitoba.
Geophysical programs are scheduled in the December quarter at Lake King,
Koolyanobbing, Copper Hills and McBride Lake. Results from several drilling
programs are expected to be released soon.
The full report with extended commentary can be viewed at the company
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. 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
For further information:
For further information: Julian Hanna, Managing Director - Western Areas
NL, Telephone +61 8 9486 7855, Email: email@example.com; Craig
Oliver, Finance Director - Western Areas NL, Telephone +61 8 9486 7855, Email:
firstname.lastname@example.org; Ann Nahajski, Investor Relations - Porter
Novelli, Telephone +61 8 9386 1233, Email: email@example.com;
Or visit: www.westernareas.com.au