Western Areas NL

Western Areas NL

April 28, 2008 08:15 ET

Western Areas Announces Record Drill Hole Intersections at Spotted Quoll and T4 Deposits

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


Spotted Quoll

Western Areas (TSX:WSA)(ASX:WSA) has received formal assay results from drill hole WBD 64 confirming a record nickel intersection at the Spotted Quoll deposit. WBD 64 intersected 18.3m at an average grade of 10.4% nickel from 231.4m depth. The intersection in WBD 64 has an estimated true width ("ETW") of 10m and the grade compares favourably with previously announced grade of 9.8% nickel estimated using a Niton portable XRF analyser.

In addition, four new drill holes completed along a 160m strike length on either side of WBD 64 all intersected significant widths of sulphides. These intersections are from south to north:

- WBD 59 : 4.5m matrix sulphide from 223.5m down hole depth (ETW 2.6m)

- WBD 66 : 5.9m matrix sulphide from 205.0m down hole depth (ETW 3.4m)

- WBD 65 : 8.3m matrix sulphide from 236.2m down hole depth (ETW 4.7m)

- WBD 70 : 11.3m - zones of massive sulphide from 192.8m depth (ETW 6.4m)

These five intersections are located below the first mineral resource which contains 34,500 tonnes nickel at an average grade of 6.3% nickel, announced on 18 April. The recent results support the Company's opinion that Spotted Quoll has the potential to rival Flying Fox as a large, continuously mineralised, high grade nickel deposit.

Western Areas has received environmental approval for another 18 drill sites at Spotted Quoll which will enable drilling to extend to at least 600m depth. In addition, Western Areas consultants Newexco are planning a surface EM survey along the prospective contact extending 10km south of Spotted Quoll. This survey is scheduled to commence in early May and will use the same techniques that resulted in the discovery of Spotted Quoll in October 2007.

Flying Fox T4 deposit

Western Areas has received assay results from drill hole FFD 193 W4/W2 confirming a record high grade nickel intersection at the Flying Fox T4 deposit. FFD 193 W4/W2 intersected 13.3m at an average grade of 8.4% nickel from 832.5m depth. Two new drill holes in this area support the intersection in FFD 193 W4/W2. These drill holes are:

- FFD 193 W4/W1/W1 : 3.7m @ 5.5% nickel from 864.9m down hole depth

- FFD 193 W4/W1/W2 : 6.8m of matrix/stringer sulphide from 835.9m down hole depth

The locations of these recent intersections are shown on the updated longitudinal projection that can be seen at the Companies website. Drilling is now focussing on the southern part of the T4 deposit which is still untested for 150m down to the underlying T5 ore body.

A summary of ore production from the Flying Fox T1 ore body will be included in the March 2008 quarter activities report due to be released on 30 April.

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


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. Mr Bill Amann from geological consultants Newexco Services Pty Ltd ("Newexco") is responsible for the verification and quality assurance of the geophysical data used in this release. Surface diamond drill hole collar surveys used differential GPS, down hole 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 or mineral resources 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.


This release contains certain forward-looking statements. An example of a forward looking statement used in this release is: 'recent results support the Company's opinion that Spotted Quoll has the potential to rival Flying Fox as a large, continuously mineralised, high grade nickel deposit'. 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.

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