Western Areas Reaches T Zero South ore body and record development rates achieved at Flying Fox


    ASX & TSX: WSA

    WEST PERTH, Western Australia, March 23 /CNW/ - Western Areas today
announced that the Flying Fox mine has reached the T Zero South ore body.
T Zero South is the second high grade nickel deposit to be exposed in the mine
which should enable ore production to increase by at least 50% in the June
    Ore is currently being extracted from two levels in the upper part of the
T Zero North deposit where production is steadily increasing as stopes are
established. Five ore shipments have been treated to date and a sixth is
expected to be treated before the end of March. Western Areas inaugural
production statistics for the March quarter will be reported next month.
    Flying Fox continues to progress at a rapid pace with mine development
rates improving since the start of the year. This is the result of relocating
the main decline into the footwall sediments, having a dedicated team to
advance the decline and commissioning a third jumbo drill rig in the mine. The
current mine development remains dry and the mine is on track to achieve a
record 300m of total advance in March. In addition to current and near term
production, the Company's priority is to ensure that the large T1 ore body is
brought into production at the earliest possible date.
    Western Areas Managing Director, Mr Julian Hanna said: "The Flying Fox
mine is on track to meet our production goals to ramp up to between 10,000 and
12,000 tonnes of nickel per annum. Based on recent drilling results, we also
expect to easily exceed our initial target of 100,000 tonnes of contained high
grade nickel at Flying Fox."
    Recent drilling has also been successful in defining extensions to
mineral resources in the upper part of the mine and converting these to ore

    Drilling is currently targeting four areas at the Flying Fox mine:

        1.    T Zero South (extension): 100m south of T Zero South, two
              significant drill hole intersections to date: FFD 183
              intersected 4.1m @ 5.5% Ni and FFD 183 W5/W1 intersected
              3.4m of massive sulphide (assays awaited).

        2.    T Zero South to T1 Upper area: Previously untested area between
              the T Zero South and the T1 Upper ore reserves. Surface and
              underground drilling in progress.

        3.    T1 North (north of the dolerite dyke): Previous drilling in
              this area has intersected 3.8m @ 5.9% Ni, 1.7m @ 7.8% Ni
              and 1.2m @ 11.1% Ni.

        4.    T2 Mineral Resource: Infill drilling to upgrade the initial
              Inferred Mineral Resource (29,700 tonnes @ 5.7% nickel
              containing 1,700 tonnes nickel) to ore reserve and to test the
              potential for extensions to the north.

    An initial mineral resource estimate is also being finalised for the
large Flying Fox T4 deposit which is expected to be released in early April.
Potential exists to extend T4 up to 100m above the current limit of drilling.
A drilling program is being prepared.

    Diggers South Deposit

    A revised mineral resource estimate which includes the results of the
recent drilling program is expected to be released early next week. This will
include an update of the pre feasibility study being undertaken by a highly
experienced team of staff and specialist consultants. The Company is still
targeting a decision to mine at Diggers South by 31 December 2007.

    New Morning and Daybreak Deposits

    A revised mineral resource estimate is being finalised for the high grade
New Morning and Daybreak deposits located 3km south of Flying Fox. Results
will be released in early April. Depending on the outcome, this may progress
to a scoping study for what has the potential to become Western Areas third
nickel mine at the Forrestania nickel project.

    Regional Exploration

    An update on the exploration program and priorities for 2007 will be
released separately.
    A full colour news release including development rate graph and Flying
Fox long section can be viewed on the company website at

    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 and mine
development activities 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. These 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;

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