WSA announces: New nickel zones and EM conductors confirm potential for major upgrade at Flying Fox mine


    ASX & TSX: WSA

    WEST PERTH, Western Australia, Aug. 14 /CNW/ - On 8 August, Western Areas
announced the first drill hole (FFD 136 W4) below the Flying Fox T5 ore body
intersected three significant new zones of nickel sulphides. Preliminary
analytical results using a portable Niton XRF analyser confirmed the presence
of high grade nickel (up 10% Ni). T5 is one of the highest grade nickel
deposits in the world with a total Mineral Resource of over 1 million tonnes
at 6.8% Ni containing 69,800 tonnes nickel.
    Interpretation of the down hole EM data from FFD 136 W4 has now been
completed. Four of the five interpreted EM anomalies are shown with the
sulphide intersections in FFD 136 W4 on the longitudinal projection and cross
section included with this release. The EM data show:

    -   The EM conductors appear to be directly associated with three new
        nickel sulphide zones intersected in drill hole FFD 136 W4.
    -   Two parallel conductors are interpreted to occur near the base of a
        wide zone of strongly disseminated nickel sulphides at T6.
    -   High grade massive sulphides (up to 10% Ni in preliminary analyses)
        were intersected near the southern edge of the largest conductor at
    -   Geological consultants Newexco have stated that, based on the EM
        data, the T7 conductor has the "potential to be another T5".

    Western Areas has now intersected high grade nickel over approximately
1100m vertical extent from the top of the T Zero ore body (where mining is in
progress) to the massive sulphide intersected in FFD 136 W4. The geological
setting and continuity of the high grade mineralisation at Flying Fox is
unlike any other known nickel mine or deposit in Australia. Drilling of the T6
and T7 EM conductors is planned to commence in early September.
    Managing Director, Mr Julian Hanna, said "The recent discoveries of T6
and T7 and the new EM conductors provide confidence that there is potential
for a major upgrade in mineral resources and the way we mine at Flying Fox.
Credit for the recent drill hole and EM goes to the Newexco exploration team
and drilling company 'DDH1' for their outstanding work."

    Mine Development

    Western Areas' mining team is considering developing a shaft in addition
to the existing decline. Specialist consultants have been approached to
prepare a scoping study to consider:

    1.  Improved haulage capacity and accelerated access down to T5
    2.  Increased ore production from several ore bodies simultaneously
    3.  Comparative capital costs and lower unit operating costs
    4.  Improved ventilation and dual mine access

    Excellent development rates are continuing in the mine. Up to 13 August,
a record 106m of advance was achieved for the previous week. Ore is being
mined from T Zero North and from T Zero South with 2-3m widths of high grade
massive sulphides exposed in the face.
    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. An example of a forward looking statement included in this release
is 'potential to be another T5'. 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:

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