WSA Announces: Drilling to test potential for "T6" below Flying Fox mine and encouraging early drilling results at Lynn Lake in Canada


    ASX & TSX: WSA

    WEST PERTH, Western Australia, June 18 /CNW/ - Western Areas today
announced significant developments relating to exploration programs at the
Forrestania Nickel Project in Western Australia and at the Lynn Lake Nickel
Project in Manitoba, Canada. In summary, these programs are:

    Forrestania Nickel Project (Western Areas 100%)

    -   Flying Fox: Drilling has commenced to test the potential for a "T6"
        deposit extending below the high grade Flying Fox T5 ore body. The
        drilling will be conducted under a cost sharing agreement between
        Western Areas and Kagara Zinc Limited.

    Lynn Lake Nickel Project (Option for 100%)

    -   VTEM Targets: Wide zones of disseminated sulphides have been reported
        from drilling at three coincident VTEM and magnetic anomalies. Drill
        core is still being processed and will be sent for assay as soon as


    Flying Fox "T6" Drilling Program with Kagara Zinc Limited.

    Western Areas and Kagara Zinc have signed an agreement to share the cost
of a diamond drill hole to test the potential for a "T6" deposit occurring
below the high grade Flying Fox T5 deposit. T5 consists of a Probable Ore
Reserve of 843,000 tonnes at 5.9% nickel (containing 49,700 tonnes nickel)
plus the Inferred Mineral Resource of 164,400 tonnes at 6.8% nickel.
    The drill hole will target the boundary of the Flying Fox mining lease
and the adjacent Lounge Lizard mining lease. Kagara owns the nickel rights to
the Lounge Lizard mining lease.
    Previously announced drill holes near the base of T5 intersected
significant down hole widths of high grade massive sulphide including: 21.8m @
5.7% nickel, 16.1m @ 9.7% nickel, 10.3m @ 8.0% nickel and 13.0m @ 9.2% nickel.
The potential for mineralisation extending below an interpreted fault at the
base of T5 is considered to be high. Massive nickel sulphides at Flying Fox
have been intersected almost continuously over 900m vertical extent from the
top of the old Outokumpu Mine to the limit of drilling at T5, at approximately
1050m depth.
    The Western Areas/Kagara drill hole will be wedged off an existing drill
hole (FFD 136 W4) and is expected to reach the T6 target zone within four

    Lynn Lake Drilling Program.

    The first drilling program to test several coincident VTEM and magnetic
anomalies in the area surrounding the Sherritt Gordon nickel/copper mines at
Lynn Lake has been completed. Five drill holes tested four targets (City
Beach, Orange Grove, Dalkeith and Melville) which are described in more detail
in a release to the ASX and TSX on 29 May 2007.
    Significant widths of disseminated sulphides were reported from drilling
at three targets (City Beach, Dalkeith and Melville) in a gabbro intrusion
similar to that which hosted the Sherritt Gordon mines. Drill core from this
program is still being logged and prepared for assaying. More information on
the sulphide intersections, including drill hole numbers, intersection widths,
interpreted geology and assay results will be released as soon as all the data
becomes available.
    Lynn Lake is one of Canada's premier nickel mining camps with a number of
mines operated by Sherritt Gordon from 1953 until 1976. Approximately 166,000
tonnes nickel and 95,000 tonnes copper were mined from mainly disseminated
sulphide deposits along a 5km long zone.
    The full report with extended commentary and diagrams can be viewed at
the company website

    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 or the Lynn Lake 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 Company.
    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

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