WSA announces: 7.7% nickel ore exposed in Flying Fox T1 ore body


    ASX & TSX: WSA

    WEST PERTH, Western Australia, Nov. 19 /CNW/ - The Board of Western Areas
is pleased to announce the Flying Fox mine has reached the high grade T1
nickel ore body. Massive nickel sulphide exposed in the first ore face at T1
is approximately 4.7m wide with an estimated average grade of 7.7% nickel
based on Niton analyses (refer to disclaimer). Ore widths in the T1 ore body
reach up to 10m in some areas.
    Delivery of ore from T1 to Norilsk's Lake Johnston concentrate plant has
already commenced. Production is expected to ramp up rapidly to reach the
target of 15,000 tonnes of ore per month as ore drives are established into
T1. Ground conditions in the mine continue to be very good.
    Western Areas Managing Director Mr Julian Hanna said "First ore from T1
is an important milestone for the Company as it signals the start of a major
expansion of production at Flying Fox. Based on extensive ore reserve
drilling, T1 has outstanding nickel grades and continuity which we expect will
be reflected in strong cash flows starting in the March 2008 quarter."
    "The successful development to T1 is the result of the hard work and
skill of the many people involved in this project on site. We have an
outstanding team of mining professionals and contractors at Flying Fox who
have all worked together to get to this point," said Mr Hanna.

    T1 Discovery History

    The discovery drill hole into T1 was announced on 26 September 2003 when
drill hole FFD 132 intersected 6.6m @ 7.9% nickel. This was followed by the
second drill hole FFD 133 which intersected 21.4m @ 7.8% nickel. The second
announcement on 6 October 2003 included the comment that FFD 133 'points to a
major nickel discovery at Flying Fox'.
    Drilling at T1 subsequently defined a Probable Ore Reserve of
314,500 tonnes @ 4.8% nickel and mine development commenced in December 2004.
An upgrade in the T1 Ore Reserve based on a recent 25% increase in the Mineral
Resource is expected to be announced soon.
    Since then, drilling below T1 has resulted in the discovery of the T4,
T5, T6 and T7 massive sulphide deposits. T5 is the largest deposit discovered
at Flying Fox to date with over 1.0 million tonnes at an average grade of 6.8%
nickel defined in Mineral Resources. Drilling is still in progress to define
Mineral Resources at the T4, T6 and T7 deposits.
    Further results from drilling at T4, T6, T7 as well as at the regional
nickel projects at Spotted Quoll, Koolyanobbing and at Lynn Lake in Manitoba
are expected to be released by early December. Results from Diggers South pre
feasibility study are due to be released this week.

    The full report with extended commentary can be viewed at the company

    DISCLAIMER: The average nickel grade of 7.7% nickel for the first ore
exposed at T1 quoted in this release is indicative only and has been estimated
using a NITON XLt 592 portable analyser which is not JORC compliant. The Niton
is used for grade control in the Flying Fox mine.

    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:; Craig
Oliver, Finance Director - Western Areas NL, Telephone +61 8 9486 7855, Email:; Ann Nahajski, Investor Relations - Porter
Novelli, Telephone +61 8 9386 1233, Email:;
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