Western Areas NL

Western Areas NL

March 26, 2009 08:00 ET

Western Areas NL: Revised Mineral Resource at Flying Fox T4 Deposit Highlights Potential for Further Extensions

PERTH, AUSTRALIA--(Marketwire - March 26, 2009) -


The Board of Western Areas (TSX:WSA)(ASX:WSA) is pleased to announce that underground diamond drilling has significantly increased the confidence level of the mineral resources in the upper panel of the Flying Fox T4 deposit. A revised ore reserve estimate is now being undertaken ahead of development in this part of the mine. Two cross cuts have already been developed into T4 and have exposed significant zones of high grade massive sulphide ore up to 8m wide. Mining is scheduled to commence at T4 during the June Quarter.

The revised total mineral resource in the upper panel of T4 now comprises 231,400 tonnes at an average grade of 5.8% Nickel, containing 13,490 tonnes nickel. Importantly, the higher confidence Indicated Mineral Resource component comprises 152,900 tonnes at a grade of 6.0% nickel for 9,200 tonnes contained nickel metal.

The focus of underground diamond drilling will now shift to infilling the lower panel of the T4 deposit down to T5. If continuous high grade nickel mineralisation is confirmed throughout this area, the combined T4/T5 deposit will extend approximately 450m in vertical extent and 420m in strike length within Western Areas' tenements.

Recent diamond drill hole intersections in the transition zone between T4 and T5 include:

FFD 196W1/W2/W1/W1 11.6m @ 5.2% nickel from 979.6m depth

FFD 196W1/W2/W1/W1/W3/W1/W2 7.4m @ 5.1% nickel from 1020.9m depth, plus:
5.3m @ 4.7% nickel from 1042.6m depth, plus:
6.3m @ 4.8% nickel from 1059.1m depth, plus:
2.3m @ 6.1% nickel from 1066.4m depth

FFD 196W1/W2/W1/W1/W3/W1/W1 18.4m @ 3.9% nickel from 1019.1m depth, plus:
1.3m @ 7.2% nickel from 1043.1m depth, plus:
1.1m @ 9.5% nickel from 1061.9m depth

Note: Nickel values for FFD196W1/W2/W1/W1/W3/W1/W2 are based on estimates
using Niton portable XRF instrument at 10cm intervals. Formal assay
results are pending.


Recent drilling in the lower panel of T4 plus the revised mineral resource in the upper panel of T4 confirm the potential for further significant extensions to Flying Fox. The Company has a target to define 10 years mine life at Flying Fox which is currently producing approximately 1,000 tonnes nickel per month at an average grade of 4% nickel from T1. The ore grade is expected to increase to 5-6% nickel as the mine accesses the larger T5 deposit in early 2010.

T4 Mineral Resource

The revised mineral resource at T4 increases the confidence of the upper panel of the deposit. A detailed mine design and an updated Ore Reserve estimation are now in progress.

The mineral resource is based on results of both surface and underground diamond drillholes up to March 2009. The mineral resource estimate was prepared by Western Areas' Geology Manager, Mr John Haywood.

Mineral Resource Statement 25 March 2009 - Flying Fox T4 Deposit

- above lower cut-off of 2% Ni
Measured Indicated Inferred
Tonnes Ni Ni Tonnes Ni Ni Tonnes Ni Ni
(%) (tonnes) (%) (tonnes) (%) (tonnes)
TOTAL - - - 152,900 6.0 9,200 78,400 5.5 4,290

Resource Parameters:

Massive and matrix sulphide mineralisation was modelled as 3D solids, and a block model was created using "Datamine Studio" software, filling the solids with cells and sub-cells; with nickel estimated by Ordinary Kriging. The mineralisation at T4 requires higher drilling density than T1 & T5.

Item Details Comments
Cells Size 5m (X) by 10m (Y) by 5m (Z) Sub-celled to match solids
Interpolation Method Ordinary Kriging Validated by ID2 estimate
Search Radii Fixed and dynamic Variable
Nominal Drill hole
spacing 10m by 10m to 40m by 40m

Surface diamond drillhole collar surveys used differential GPS; downhole surveys used a gyroscopic instrument; underground diamond drillholes collar surveys by total station and downhole survey by Maxibor or gyroscopic instrument; a comprehensive density database was utilised; there is high assay confidence with systematic QA/QC procedures; a validated acQuire database. An alternate inverse distance squared estimate was made to validate the ordinary kriged resource. A validation of drillholes against block model grades was made.

QA-QC STATEMENT: 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 mineral resources and mine development activities is based on data compiled by Mr John Haywood and Mr Julian Hanna of Western Areas NL. Mr Haywood and Mr Hanna are members of AusIMM and full time employees of the Company. Mr Haywood is responsible for the calculation, classification and reporting of the Mineral Resources. Mr Haywood and Mr Hanna have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.' Mr Haywood and Mr Hanna consent 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. Examples of forward-looking statements used in this release are: "confirm the potential for further significant extensions to Flying Fox. The Company has a target to define 10 years mine life at Flying Fox," and, "If continuous high grade nickel mineralisation is confirmed throughout this area, the combined T4/T5 deposit will extend approximately 450m in vertical extent and 420m in strike length within Western Areas' tenements." 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 Flying Fox 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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