Western Areas Announces Further Drilling Results at Spotted Quoll (up to 14.6% nickel)


    ASX & TSX: WSA

    WEST PERTH, Western Australia, Feb. 20 /CNW/ -

    Spotted Quoll

    Ongoing drilling results confirm the excellent continuity of the recently
discovered high grade Spotted Quoll nickel deposit at shallow depth. Assay
results of different ore types from the area drilled to date (240m strike
length, 150m down dip) are consistently in the range:

           stringer sulphides: 3.6% to 6.6% nickel
           massive sulphides:  9.0% to 14.6% nickel

    Recent massive sulphide drill hole intersections include:

    -   WBD 28      8.7m @ 11.4% nickel from 88.2m depth (announced
                    1 February)
    -   WBD 31      6.5m @ 9.4% nickel (incl 4.3m @ 13.0% nickel) from
                    78.3m depth
    -   WBD 32      3.1m @ 10.0% nickel plus 1.9m @ 11.0% nickel from
                    76.8m depth
    -   WBD 34      3.2m plus 3.4m massive sulphide from 119.0m depth

    The exceptional tenor of the massive sulphide mineralisation at Spotted
Quoll suggests potential exists for a deposit of similar or possibly higher
grade than the Flying Fox mine.
    The first target of the drilling program is to define a mineral resource
to 200m depth by the end of the March quarter. Drilling is currently targeting
south and above the area drilled to date testing the potential for an initial
high grade open pit mine. Drilling will then test the potential for deeper
extensions below the current limit of drilling to 400m depth.

    Flying Fox - T4

    Drilling has confirmed high grades at the southern end of T4. Recent
intersections are:

    -   FFD 193 W1/W1     5.4m @ 7.5% nickel from 812.0m depth
    -   FFD 193 W2        2.2m @ 8.0% nickel from 816.2m depth
    -   FFD 193 W3        3.1m @ 5.2% nickel from 818.8m depth

    Drilling will continue to focus at the southern end of T4 which remains
open for at least 100m below the area of the three drill holes listed above. A
second drill rig is testing T4 south of the dolerite dyke. The main decline is
due to access T4 by the end of December.

    Flying Fox - T6 and T7

    Assay results have been received for drill hole FFD 136 W4/W1/W2 which
intersected T6, the T6 Fault and the southern end of the T7 EM conductor. This
drill hole has confirmed significant widths of disseminated nickel sulphides
in T6 as well as high grade massive sulphides in the T6 Fault and T7 deposits.
Key intersections in FFD 136 W4/W1/W2 are:

        T6          17.0m @ 1.4% nickel from 1409.3m depth
                    0.9m @ 14.0% nickel from 1432.7m depth
                    19.0m @ 1.0% nickel from 1435.6m depth

        T6 Fault    0.7m @ 8.5% nickel from 1546.5m depth
                    3.2m @ 3.6% nickel from 1555.0m depth

        T7          9.3m @ 5.1% nickel from 1636.0m depth

    The significance of FFD 136 W4/W1/W2 is that is demonstrates strong
nickel mineralisation extends over a large, sparsely drilled area below the T5
ore body. The grade of the intersection in T7 (9.3m @ 5.1% nickel - see below)
is the result of dilution of a zone of massive sulphide (with individual
assays of 9.5%, 9.0%, 8.3%, 9.1% 9.7% 9.0% and 8.1% nickel) with barren
sediment intervals. FFD 136 W4/W1/W2 confirms the high tenor and good ground
conditions of the T7 zone and provides confidence in the potential of the
strong T7 EM conductor located immediately north of the drill hole. Drilling
is currently testing the continuation of the T5 ore reserve into the
underlying T6 deposit before moving to target the centre of the T7 conductor.
    To view a full release including pictures and diagrams please visit
www.westernareas.com.au and follow the news release links.


    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.


    This release contains certain forward-looking statements. An example of a
forward looking statement in this release is: 'first target of the drilling
program is to define a mineral resource to 200m depth by the end of the March
quarter'. 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 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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