Western Areas NL

Western Areas NL

April 28, 2008 08:00 ET

Western Areas Announces Lease Boundary at Melville Nickel/Copper Prospect in Canada

PERTH, AUSTRALIA--(Marketwire - April 28, 2008) -


Following an announcement on 23 April regarding significant nickel/copper drill hole intersections at Lynn Lake in Manitoba, Western Areas (TSX:WSA)(ASX:WSA) has been notified by Canadian listed Independent Nickel Corp. that the four drill holes reported by Western Areas are located within an Independent Nickel mining lease. Independent Nickel has conducted a survey of the historic lease boundary in the immediate area of the announced mineralisation at the Melville Prospect. The boundary separates Independent Nickel's mining leases to the south from Western Areas option claims to the north.

Western Areas has requested an independent survey of the lease boundary with results to be supplied to both companies. The lease boundary assumed by Western Areas for conducting the drilling program was based on Manitoba Geological Survey plans. Until the lease boundary is resolved, Western Areas has provided Independent Nickel with access to the drill core and all assay results from the four drill holes. This includes assay results from LL016 which were received on 24 April.

LL016 intersected: 14m @ 1.4% nickel, 0.7% copper and 0.03% cobalt from 72m down hole depth including 5m @ 2.0% nickel, 0.7% copper 0.05% cobalt from 80m down hole depth.

Significance of Results and Discussion of the Lease Boundary

The recent drilling results from Melville, although based on a very limited number of drill holes to date, appear to be significant. Melville has the potential to be the first new nickel/copper discovery in the Lynn Lake nickel camp since Sherritt Gordon ceased mining in 1976.

In the event that the independent survey confirms Independent Nickel's interpretation of the historic lease boundary:

1. The two high grade nickel/copper intersections in drill holes LL015 and LL016 are located only 10m and 15m respectively from Western Areas option claims boundary.

2. Further drilling is required to determine the strike direction and dip of the mineralisation intersected in LL015 and LL016. The mineralisation remains open along strike and at depth.

3. The 500m wide zone of coincident magnetic/VTEM anomalies directly north of the Melville mineralisation is clearly located within Western Areas option claims.

Western Areas Managing Director, Mr Julian Hanna, said "The Lynn Lake nickel/copper ore bodies mined by Sherritt Gordon were typically large, multi million tonne deposits. It is possible that Western Areas has intersected the edge of one of these deposits which has not been recognized previously and is effectively untested. One of our priorities is to test the magnetic/VTEM anomalies located immediately north of the recent intersections." Mr Hanna added, "Western Areas enjoys a very positive working relationship with Independent Nickel and we look forward to this continuing."

Western Areas plans to resume drilling in mid May. This program is designed to test:

- the continuity of the recently intersected Melville mineralisation on the option claims

- the source of the large, coincident magnetic and VTEM anomalies north of Melville

Drill hole collar coordinates:

LL015 MELVILLE 153.01 340 -65 376489.00 6302211.00
LL016 MELVILLE 140.82 0 -65 376489.50 6302211.00
LL017 MELVILLE 128.63 320 -65 376488.50 6302211.00
LL018 MELVILLE 223.11 340 -71 376489.00 6302211.00

This entire release including diagrams can be viewed at www.westernareas.com.au.

QA QC STATEMENT: Mr Robert Barwick from Western Areas is responsible for the verification and quality assurance of the Company's exploration data and analytical results from the Lynn Lake Nickel Project. Surface diamond drill hole collar surveys used a Garmin GPS with an error of +/- 5m. Samples of half core from the drill holes described in this release are prepared and analysed by ALS Chemex in Vancouver 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 ME-OG62 method. The information within this report as it relates to exploration results is based on information compiled by Mr Julian Hanna from information supplied by Western Areas Exploration Manager, Mr Barwick. 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 in this release is: 'It is possible that Western Areas has intersected the edge of one of these deposits which has not been recognized previously and is effectively untested'. 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 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.

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