WSA Announces: High grade nickel and strong EM conductors in first drill hole below Flying Fox T5 ore body



    /THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
    FOR DISSEMINATION IN THE U.S./

    ASX & TSX: WSA

    WEST PERTH, Western Australia, Aug. 8 /CNW/ - The Board of Western Areas
NL is pleased to announce that the first drill hole (FFD 136 W4) to test below
the large Flying Fox T5 nickel ore body has been an outstanding success.
    On 30 July, the Company announced that FFD 136 W4 had intersected three
separate zones of massive, stringer and disseminated sulphides. Since then,
FFD 136 W4 has been completed to 1,843m down hole depth, the sulphide zones
have been analysed using a portable XRF analyser and a down hole EM survey has
been completed. Preliminary analytical results and an interpretation of the EM
and geological data have now been received from Newexco.

    The results are considered to be very significant for three main reasons:

    
    1.  FFD 136 W4 appears to have intersected two separate panels of nickel
        sulphide mineralisation (T6 and T7) offset to the east by horizontal
        faults below T5. These panels are interpreted to extend from
        approximately 1100m to 1400m vertical depth.

    2.  Preliminary analytical results using Niton (refer to disclaimer)
        indicate the presence of significant nickel values in T6 and T7.
        Nickel values estimated by Niton include:
          -  up to 1.5% nickel in a wide disseminated sulphide zone above the
             basal ultramafic contact at T6
          -  up to 3% nickel in a 3.6m wide stringer sulphide zone within
             pegmatite intruding a horizontal fault. The fault is interpreted
             to separate T6 and T7
          -  between 4% and 10% nickel in massive sulphide within a 7.1m wide
             sulphide zone on the basal contact at T7.

    (Notes: Assay results are required to verify the spot Niton analyses
    estimated to date. The zones analysed coincide with the three sulphide
    zones described in the 30 July release and sulphide intersection widths
    quoted above are down hole widths)

    3.  Five new EM conductors have been interpreted above, below, north and
        south of FFD 136 W4. The strongest and largest conductor is on the
        basal contact of T7. It is interpreted to extend several hundred
        metres north and above the intersection of massive and stringer
        sulphides with Niton analyses up to 10% nickel.
    

    Discussion

    Western Areas Managing Director, Mr Julian Hanna, said "This is only the
first drill hole into a new area of Flying Fox and it has exceeded all our
expectations. Western Areas has now identified high grade nickel continuously
over approximately 1,000 m vertical extent at Flying Fox and the deposit still
remains open at depth."
    "FFD 136 W4 is already changing the way we view Flying Fox. Yesterday,
our target mine life down to T5 was ten years with production ramping up to
12,000 tpa nickel. If T6 and T7 prove to be economic, this will change and we
may have a world class mine on our hands".
    A drilling program will commence to test these targets with a drill rig
likely to be moved from one of Western Areas other targets. FFD 136 W4 is
expected to be used as a drilling platform to wedge off a number of diamond
drill holes which will result in significant cost and time savings to test
these targets.
    A longitudinal section and interpreted cross section showing the position
of FFD 136 W4 and the interpreted off hole EM conductors will be released when
they have been drafted.

    QA-QC STATEMENT:

    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 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. An example of a forward looking statement included in this release
is "If T6 and T7 prove to be economic this will change and we may have a world
class, mine on our hands" 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
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: 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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