WSA announces: Drilling resumes at Flying Fox T6 and T7 targets and excellent results continue at T4


    ASX & TSX: WSA

    WEST PERTH, Western Australia, Sept. 11 /CNW/ - The Board of Western
Areas is pleased to announce that the second drill hole to test the recently
discovered Flying Fox T6 and T7 nickel sulphide zones is expected to intersect
the target zone early next week. Based on results from the discovery drill
hole (FFD 136 W4), T6 and T7 are associated with a wide interval of down hole
and off hole EM conductors. This is the first time multiple EM conductors have
been seen in one drill hole at Flying Fox.
    Managing Director Mr Julian Hanna said, "We have included the down hole
EM data from FFD 136 W4 in this release so shareholders and analysts can make
their own judgements on the potential for a major discovery in the T6/T7 area.
We think it looks very exciting."
    "Our consultants Newexco have stated that, based on the EM data, T7 have
the 'potential to be another T5'," said Mr Hanna. T5 is one of the highest
grade nickel deposits in the world with announced indicated mineral resource
of 8.6 million tonnes at 6.8% Ni containing 58,600 tonnes nickel and inferred
mineral resource of 1.6 million tonnes at 6.8% Ni containing 11,200 tonnes
    "We are already undertaking a scoping study for a shaft to access deeper
deposits at Flying Fox," he said. "If this proves to be a viable option then
potential exists for a significant increase in ore production and we may
exceed our target of 12,000-14,000 tpa nickel by 2010."
    In addition, extensional drilling at the Flying Fox T4 deposit is
producing very encouraging intersections. Three latest drill holes (FFD
190 W2, FFD 190 W2/W1 and FFD 190 W2/W2) intersected substantial widths of
massive sulphides in zones up to 8m down hole width in an area north and above
any previous drilling at T4. These intersections are shown on the longitudinal
section in this release and assay results are awaited to confirm nickel

    Flying Fox - T6 and T7

    On 8 August 2007, the Company announced that the first drill hole (FFD
136 W4) to test T6 and T7 intersected three significant zones of nickel
sulphides. Preliminary analytical results using a portable Niton XRF analyser
confirmed the presence of high grade nickel (up 10% Ni) over a 7.1m zone in
T7. Formal assays are still awaited to confirm the Niton analyses.
    Importantly, the nickel sulphide zones appear to be associated with up to
six EM conductors interpreted from a 350-400m interval in FFD 136 W4. The
strongest and largest conductor (T7) extends well north of the point
intersected by FFD 136 W4.
    The current drill hole (FFD 136 W4 W1) is targeting:

    1.  The T6 disseminated zone with two EM conductors
    2.  The flat lying T6 Fault and EM conductor which separates T6 and T7
    3.  The centre of the T7 EM conductor, 100m north of the discovery drill

    FFD 136 W4 W1 is already at 1250m down hole depth and is expected to
intersect the first target (T6) early next week.

    Flying Fox - T4

    The three most recent drill holes in the upper, northern part of the T4
deposit have all intersected significant zones of massive and stringer
sulphides. These drill holes are:

    -   FFD 190 W2 (greater than)8m zone of massive & stringer sulphide with
        granite intervals
    -   FFD 190 W2/W1 7.2m zone of massive sulphide with granite intervals
    -   FFD 190 W2/W2 5.1m of massive sulphide

    Although assay results are awaited to confirm nickel grades, the recent
results confirm potential for a significant extension to the previous limits
of the deposit. The boundary of the dolerite dyke is also interpreted to occur
further north than previously thought which is expected to have a further
impact on the size of T4.
    Drilling is currently testing for extensions at the southern limit of T4.
Due to the extent of T4, further infill drilling is still required before a
mineral resource can be estimated.

    Flying Fox - Mine Development

    The Flying Fox mine is continuing to perform above budget with a record
week of 50m advance in the main decline reported to 4 September 2007. Ore is
now being accessed from several faces in the T Zero ore body. Production from
the larger and higher grade T1 ore body is expected to commence early in the
December quarter.
    The full report with extended commentary can be viewed at the company


    Note: The nickel grade estimates for drill hole FFD 136 W4 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,
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 results,
mineral resources or ore reserves 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. Examples of two forward looking statements included in this
release are 'potential to be another T5' and 'If this proves to be a viable
option then potential exists for a significant increase in ore production and
we may exceed our target of 12,000-14,000 tpa nickel by 2010.' 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:;
Or visit:

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890