Western Areas confirms spotted quoll nickel discovery


    Resource drilling program underway

    ASX & TSX: WSA

    WEST PERTH, Western Australia, Nov. 30 /CNW/ - The Board of Western Areas
is pleased to announce that all four diamond drill holes completed to date at
the recent Spotted Quoll nickel discovery, 6km south of Flying Fox have
intersected significant widths of sulphide mineralisation at shallow depth. As
a result of this success, the focus of the drilling program has already
shifted to defining a mineral resource to 200m depth.
    The discovery drill hole (WBD 18) announced on 16 October intersected
6.2m @ 4.8% nickel including 3.6m @ 6.9% nickel from 121.5m down hole depth.
Based on Niton analysis of sulphide intersections in the three follow-up drill
holes (WBD 21, WBD 22 and WBD 23) these drill holes are expected to contain
significant nickel values similar to WBD 18.
    Western Areas' drilling on section 6403460N has confirmed the continuity
of the sulphide zone for at least 100m down dip. The fourth drill hole WBD 023
is located 40m south of WBD 018 and intersected 3m of strong matrix sulphides.
In addition, a water bore drilled 180m south of WBD 18 intersected what
appears to be the same sulphide zone. Niton analysis of the sulphide from the
water bore confirmed the presence of nickel over a short interval (see
Disclaimer in this release regarding Niton analysis).
    Although the amount of drilling to date is limited, a number of
interpretations can be made:
    1.  The Spotted Quoll sulphide zone appears to be continuous and forms
        part of a regional shear zone below the main ultramafic/sediment

    2.  There appear to be similarities in the geological setting of Spotted
        Quoll to the upper part of the Flying Fox mine.

    3.  Potential for a significant nickel deposit exists within the shear
        zone at shallow depth, which is the target of the current drilling

    4.  Potential exists for bonanza grade deposits of the Flying Fox type
        which may occur in favourable structural settings or associated with
        granite intrusions at depth.

    Managing Director Mr Julian Hanna said, "Western Areas and our geological
consultants Newexco are excited by these results. 100% success rate in the
limited shallow drilling to date points to the outstanding potential of this
new target. Spotted Quoll also highlights the opportunity for further
discoveries along the 25km long western nickel belt which already hosts the
significant Flying Fox, New Morning/Daybreak, and Beautiful Sunday deposits."

    Drill hole coordinates:
    Hole_ID  Collar Easting   Collar Northing   Dip/Azimuth of   End of hole
                    (GDA94)           (GDA94)       drill hole      depth (m)
    WBD 018        751,630         6,403,460           -60/270           235
    WBD 021        751,632         6,403,460           -75/270           236
    WBD 022        751,620         6,403,460           -45/270           155
    WBD 023        751,630         6,403,420           -60/270   In progress

    The report with long section diagrams can be viewed at the company
website www.westernareas.com.au.


    Note: The nickel grade estimates for drill holes quoted in this release
are indicative only and have been estimated using a NITON XLt 592 portable
analyser which is not JORC compliant.

    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
'Potential for a significant nickel deposit exists within the shear zone at
shallow depth which is the target of the initial drilling program.'
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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