Western Areas NL
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Western Areas NL

March 22, 2011 06:27 ET

Western Areas NL Update

Mustang Minerals New Platinum and Palladium Discovery

PERTH, AUSTRALIA--(Marketwire - March 22, 2011) - Western Areas NL (TSX:WSA) (ASX:WSA) -

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

Mustang Minerals Corp ("Mustang") has today announced a potentially significant platinum and palladium discovery at Mustang's 100% owned Mayville Project in southeast Manitoba. Western Areas owns 19.9% of Mustang. A sketch cross section and geophysical plan from Mustang's website and a copy of Mustang's announcement are included with this release. 

A wide zone of platinum and palladium mineralisation associated with disseminated sulphides and chromitite has been intersected in two diamond core drill holes at shallow depth. 

Drill hole MAY-11-07 (see Figure 1) intersected:

75.8m at an average grade of 1.7 g/t platinum + palladium, from 34.1m depth, including:
41.2m at an average grade of 2.9 g/t platinum + palladium, from 34.1m depth, including:
9.1m at an average grade of 9.5 g/t platinum + palladium, from 55.5m depth

The highest grade in MAY-11-07 is 1.5m at 8.9g/t platinum, 22.6g/t palladium and 0.7g/t rhodium (PGM). Assay results have been confirmed independently by two laboratories. 

Mustang is drilling a previously untested, IP-EM-magnetic trend within the Bird River Intrusive Complex. The PGM mineralisation appears to be associated with disseminated sulphides within a host ultramafic unit which has a potential strike length up to 2 km, based on geophysics (Figures 1 & 2). The host unit is located 1 km southeast of Mustang's gabbro hosted Mayville copper/nickel sulphide deposit and 250 meters north of a separate, recent discovery of copper/nickel sulphides, announced by Mustang on March 3rd, 2011. 

To view Figure 1: Sketch section of two 'discovery drill holes' showing platinum and palladium mineralisation, please visit the following link:

http://media3.marketwire.com/docs/683661FIG1.jpg

The PGM mineralisation remains completely open along strike and at depth. Drilling is planned to resume soon, to test the width and potential strike length of the new discovery.

To view Figure 2: Image of VTEM data covering part of Mustang's extensive holdings in the Mayville Project area, please visit the following link:

http://media3.marketwire.com/docs/683661FIG2.jpg

Western Areas' Interest in Mustang Minerals

In December 2010, Western Areas increased its holding in Mustang to approximately 30.76 million shares equivalent to 19.9% equity. Western Areas is represented on the Mustang Board by Managing Director Mr Julian Hanna and Operations Director Mr Dan Lougher.

Western Areas is currently providing Mustang with technical support to assist bringing the Makwa openpit nickel/copper/PGM deposit in SE Manitoba into production. The Makwa deposit is located 35km south of the Mayville deposit and the new PGM discovery. 

Western Areas also has an agreement with Mustang to earn 70% joint venture interest in the East Bull Lake Intrusive Complex, 80km west of Sudbury in Ontario. A strong conductor has been identified for drilling in 2011, in an area of known nickel/copper/PGM mineralisation.

Discussion

Managing Director Mr Julian Hanna said: "Mustang's results are very encouraging with a wide zone of platinum/palladium mineralisation intersected at shallow depth in a large, previously untested geophysical anomaly. The results highlight potential for further nickel/copper/PGM discoveries in what appears to be a strongly mineralised intrusive complex". 

"With strong cash flows being generated from Western Areas' nickel mining operations at Forrestania, we are now stepping up exploration activities in all areas. In addition to the Australian and Canadian projects, drilling is planned to resume on our substantial Finland assets at the end of March. Drilling will test a number of priority targets for Talvivaara Type nickel/zinc/copper deposits and for high grade Outokumpu Type copper deposits in Finland". "We are very excited by the quality of the targets selected by our geologists for drilling over the next few months in Australia, Canada and Finland", Mr Hanna added.

To view the Mustang Minerals press release, please visit the following link:

http://media3.marketwire.com/docs/683611.pdf

DISCLAIMER AND COMPETENT PERSONS STATEMENT:

The information within this report as it relates to exploration results or mineral resources is based on information provided by Mustang Minerals Corp and 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 they are undertaking to qualify as a Competent Persons 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 context in which it appears. 

FORWARD LOOKING STATEMENT:  

This release contains certain forward-looking statements. Examples of forward-looking statements used in this release include: "The PGM mineralisation appears to be associated with disseminated sulphides within a host ultramafic unit which has a potential strike length up to 2 km, based on geophysics", and, "The PGM mineralisation remains completely open along strike and at depth", and, "The results highlight potential for further nickel/copper/PGM discoveries in what appears to be a strongly mineralised intrusive complex", and, "We are very excited by the quality of the targets selected by our geologists for drilling over the next few months in Australia, Canada and Finland".

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 Mustang Minerals Corp. or Western Areas NL, or the Makwa and Mayville deposits 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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