Western Areas announces high grade assays up to 11% nickel confirm significance of Spotted Quoll discovery


    ASX & TSX: WSA

    WEST PERTH, Western Australia, Dec. 11 /CNW/ - Western Areas has
announced that assay results received from all four recent drill holes at
Spotted Quoll have exceeded expectations with significant widths of high
grade, high tenor nickel sulphides at shallow depth. Two additional drill
holes (for which assays are awaited) have also intersected greater than 3m
widths of massive, matrix and stringer sulphides. Although drilling is still
at an early stage, the continuity of high grade mineralisation intersected to
date confirms the potential for a major nickel deposit at Spotted Quoll.
    The results also highlight the excellent potential for further
discoveries elsewhere along the Forrestania nickel belt. Spotted Quoll is the
first new target to be tested since Western Areas raised additional funding
for exploration drilling as part of the Convertible Bond in June 2007.

    Intersections in the six drill holes completed to date at Spotted Quoll

    -   WBD 18   6.2m @ 4.8% Ni from 121.5m (announced on 16 October)
    -   WBD 19   0.2m @ 5.1% Ni from 185.7m (water bore 180m south of
                 WBD 18)
    -   WBD 21   7.9m @ 3.7% Ni from 141.0m (incl 1.1m @ 8.4% Ni)
    -   WBD 22   5.0m @ 6.6% Ni from 99.4m (incl 0.7m @ 11.0% Ni & 0.8m
                 @ 9.8 Ni)
    -   WBD 23   3.0m massive plus stringer sulphides from 117.9m (assays
    -   WBD 24   3.7m matrix plus stringer sulphides from 132.4m (assays

    (Note: intersections listed above are from down hole depths)

    The drilling program at Spotted Quoll is ongoing with the aim of defining
a mineral resource to 200m depth as soon as possible. Drilling is then
expected to test potential for remobilised Flying Fox type deposits associated
with granite intrusions below the current limit of drilling.
    The Company is reviewing drilling priorities with six diamond drill rigs
testing the following:

                 Flying Fox T1 extensions    (1)
                 Flying Fox T4 deposit       (2)
                 Flying Fox T6/T7 deposits   (1)
                 Diggers South deposits      (1)
                 Spotted Quoll deposit       (1)

    Most of these drill rigs are regularly intersecting strong nickel sulphide
mineralisation which is being reported as results are compiled. An additional
surface drill rig is also being sourced.

    Drill hole coordinates:

    Hole_ID   Collar Easting   Collar Northing   Dip/Azimuth of  End of hole
                      (GDA94)           (GDA94)      drill hole     depth (m)
    WBD 18           751,630         6,403,460          -60/270          235
    WBD 19           751,630         6,403,280         vertical   water bore
    WBD 21           751,632         6,403,460          -75/270          236
    WBD 22           751,620         6,403,460          -45/270          155
    WBD 23           751,630         6,403,420          -60/270          223
    WBD 24           751,632         6,403,420          -75/270          190

    The full release including diagrams can be viewed at


    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.

    FORWARD LOOKING STATEMENT: This release contains certain forward-looking
statements. An example of a forward looking statement in this release is:
'Drilling is then expected to test potential for remobilised Flying Fox type
deposits associated with granite intrusions below the current limit of
drilling.' 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 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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