Western Areas Announces Nickel Intersected in First Prospect Drilling at Cosmos Complex

PERTH, AUSTRALIA--(Marketwired - Feb. 6, 2017) -

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

Western Areas Ltd. (ASX:WSA) (Company) is very pleased to announce the return of nickel grade intercepts from its first ever phase of RC and RC pre-collar drilling at the Neptune prospect within the Cosmos Nickel Complex (Cosmos). The RC drilling, and subsequent diamond coring programme is planned to confirm the first of a series of electromagnetic anomalies in the Neptune area, identified from a geophysical survey completed in 2016.

Key highlights include:

• 65m interval of ultramafic-hosted, disseminated sulphides containing 0.82% nickel (from 68m), including 17m at 1.33% nickel within drill-hole WCD003;
• A secondary interval within the same drill hole (WCD003) of 13m at 1.11% nickel (from 177m) including an elevated zone of 3m at 2.76% nickel;
• Down-hole electromagnetic (DHEM) survey of WD003 underway in order to define further drilling targets;
• Confirmation that the cumulate ultramafic sequence hosting the Prospero/Tapinos deposit continues south into the Neptune prospect target area; and
• Diamond core tails (on existing RC pre-collars) to commence this quarter, along with a new diamond core hole to twin the WCD003 intersection.

Western Areas Managing Director, Dan Lougher, commented that the results for the first phase of drilling at Neptune are especially encouraging.

"Although drilling is at an early stage, the intersection of nickel sulphides at shallow depth in the first phase of drilling at Neptune is a strong endorsement of targeting this area and clearly confirms our view of the prospectivity of the Cosmos district. The substantial exploration opportunities at Cosmos, including largely untested prospects such as Neptune, were a key part of our acquisition rationale."

"We await the outcome of further geophysical surveying, and the completion of the diamond core tails. We have the drill rigs and budget available to quickly accelerate the rate of drilling at this new target as required," said Mr Lougher.

"Neptune is an area that the prior owners of Cosmos were never able to drill test, and I would like to acknowledge the mutual cooperation and relationships which have been developed between the Tjiwarl traditional owners and Western Areas that have allowed us to access the area," said Mr Lougher.

Assay results (Table 1) have been returned for all holes. Significantly WCD003 returned a number of mineralised intervals, tabulated below, including an upper zone of 17m @ 1.33% Ni from 100m and a lower interval of 13m @ 1.11%Ni from 177m, including 3m @ 2.76%Ni from 184m down-hole depth.

The intersection of nickel sulphides, as well as confirmation that the cumulate ultramafic sequence hosting the Prospero/Tapinos deposit continues south into the Neptune prospect target area, is an extremely positive result. The nature of the drilling (predominantly RC pre-collars) and broad spacing of the holes means further work (particularly completion of the diamond core tails and subsequent DHEM) is required to fully understand the context of the current mineralised intercepts.

The Neptune area lies to the south of the Prospero high grade nickel deposit and is interpreted to contain the highest volume of cumulate ultramafics in the Cosmos nickel belt. A moving loop electromagnetic (MLEM) survey completed by the Company identified a number of high priority anomalies and these, along with nickel sulphides identified in historic drilling, are the focus for the exploration program. The initial drilling commenced in the northern area of the prospect following statutory approvals to access the northern areas of Lake Miranda. The Neptune drilling is the first work completed in this area in modern times and is a testament to the Company's strong commitment to work with the Tjiwarl traditional owners in order to collaboratively access this area.

Table 1: Assay results of 1m composite samples for WCD003

Further Details

A total of eight RC holes and pre-collars for 2,003m were completed just prior to the end of the December 2016, tabulated below. Given the locality's proximity to Lake Miranda, Western Areas planned for water flows to impact the final depths of the RC holes, and accordingly only one hole (WCC002A) effectively tested the interpreted contact. As such, the remaining holes have been pre-collared for diamond core tails that are planned to be completed this quarter.

DISCLAIMER AND QA-QC STATEMENT:

The information within this report as it relates to exploration results is based on information compiled by Mr Charles Wilkinson. Mr Wilkinson is a member of AusIMM and is a consultant to the Company. Mr Wilkinson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a Competent Persons as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.' Mr Wilkinson 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: "Down-hole electromagnetic survey of WD003 underway in order to define further drilling targets" and, "The Neptune area lies to the south of the Prospero high grade nickel deposit and is interpreted to contain the highest volume of cumulate ultramafics in the Cosmos nickel belt". 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 the Cosmos Nickel Complex 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.

Contact

Western Areas Ltd.
Dan Lougher
Managing Director
+61 8 9334 7777
dlougher@westernareas.com.au

Western Areas Ltd.
David Southam
Executive Director
+61 8 9334 7777
dsoutham@westernareas.com.au
www.westernareas.com.au

FTI Consulting
Shane Murphy
+61 8 9485 8888 / 0420 945 291
shane.murphy@fticonsulting.com