Sandstone (WSA earning 70% of nickel rights from Troy Resources)

In November 2007, Western Areas announced an agreement to explore a large area of nickel prospective tenements in the Sandstone greenstone belt in a JV with Troy Resources NL. Western Areas can earn a 70% interest in nickel and related metals in a large area (approximately 25km by 15km) of prospective ultramafic sequence which has had minimal previous exploration for nickel.

On 8th March 2010 Western Areas announced the first known occurrence of nickel sulphides in drilling at Sandstone.  WAD002 returned 26.2m @ 0.4% nickel from 60.3m including a narrow interval of semi massive sulphides which analysed 0.2m @ 4.1% Ni from 86.3m down hole depth. Although exploration is still at an early stage these results are considered to be very encouraging. The association of prospective geology with nickel sulphide mineralisation highlights the potential of the Sandstone JV project, 400km north of the Forrestania Nickel Project.

Western Areas is undertaking a systematic exploration program to test large areas of prospective high MgO cumulate ultramafic rocks for nickel sulphides. This includes using geophysical surveys to identify anomalous conductors and aircore drilling to define targets for deeper drilling.

A number of surface geophysical surveys including, induced polarisation (IP) and EM have been completed over interpreted ultramafic units that are considered prospective for nickel sulphides.  Four diamond drill holes have been drilled to date to test the geophysical targets, with all four intersecting non-nickeliferous sulphides. The drill holes were successful in identifying the sources of anomalism, which indicates that the geophysical surveys have been effective in screening the area for nickel deposits. Further drilling and testing of the remaining EM targets will commence during the year.

Further drilling (aircore/RAB) will be undertaken in areas that have received minimal exploration to date to identify further areas that contain high MgO cumulate ultramafic rocks which are prospective for nickel sulphides.

Additionally, Western Areas has been granted government co-funding (up to $150,000) to complete a number of stratigraphic drill holes to test the geological hypotheses that the prospective stratigraphic contact for nickel may be located at depth, below the central zone of the Sandstone Belt.

Location plan showing recent RAB/RC Drilling and locations of EM anomalies over TMI aeromagnetics