Western Areas is an Australian-based nickel sulphide explorer and producer listed on the ASX and TSX (ASX & TSX Code: WSA). The Company's core asset is the 100% owned Forrestania Nickel Project, located 400km east of Perth.
The primary discovery at Forrestania, Flying Fox, is one of the highest grade nickel deposits in the world. Total Mineral Resources at Flying Fox comprise 2.0 million tonnes at an average grade of 6.2% (2.5Mt @ 5.5% for 125kNi including Lounge Lizard) nickel, containing approximately 125,640 tonnes of nickel. Western Areas' produced 8,000 tonnes of nickel in the 1st full year of production at Flying Fox.
The Company is also developing a number of other discoveries at the Forrestania Nickel Project.
Open pit mining has also commenced at Spotted Quoll, 6km south of Flying Fox, Total Ore Reserves at Spotted Quoll comprise 2.1Mt at an average grade of 4.3% nickel containing approx. 90,100t nickel. A feasibility study for an underground mine at Spotted Quoll is expected to be completed in the September Q 2010. Deeper drilling has intersected high grade nickel up to 400m below the ore reserve at Spotted Quoll.
The Cosmic Boy nickel concentrator in the centre of the Forrestania project was officially opened on 24 March 2009 by the Western Australian Minister for Mines and Petroleum. The Stage One plant is fully operational and a Stage Two expansion to double the capacity of the plant to 550,000 tpa ore is expected to be completed in the June Q 2010.
Flying Fox and Spotted Quoll are expected to be two of the lowest cost nickel mines in the world. In addition preliminary surface development work has been completed on the planned Cosmic Boy and Diggers South mines.
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