Southern Cross Goldfields Joint Venture (WSA 70% interest in nickel rights)

Western Areas announced in September 2011 that an agreement had been reached with Southern Cross Goldfields Limited (SXG) to acquire 70% of SXG’s nickel rights across much of its 3,300km2 tenement holding in the Marda and Southern Cross regions of Western Australia. The SXG tenement package covers a large part of the north western portion of the ‘Central Yilgarn Nickel Province’.

Initial work was undertaken within the Bullfinch North area where previous exploration resulted in the identification of multiple nickel sulphide targets including Trough Well, Lady Agnes and Sirius. At Trough Well previous drilling intersected multiple zones of nickel sulphides over a strike length of 800m within a classic Kambalda-style setting. Drilling includes historic shallow intersections of 14m @ 2.7% Ni and 5m @ 2.4% Ni and a deeper hole intersected 20m @ 0.62% Ni including 4m @ 1.41% Ni. The latest interpretation indicates a similar structural setting and geometry to the Forrestania type nickel deposits.

The initial exploration activities in the Bullfinch area have included a moving loop electromagnetic (MLEM) survey and diamond drilling around Trough Well. The initial results were encouraging with a number of anomalies associated with known nickel sulphide mineralisation and others where there is no previous work.