Western Areas is a mineral exploration and development company.  Its principal asset is a 100% interest in the Forrestania Nickel Project ("Forrestania") located 400 km east of Perth, Western Australia. The Company is developing a high grade nickel deposit at Forrestania (Flying Fox), conducting a feasibility study for a major expansion of the project and is spending approximately A$12 million per annum on exploration aimed at building resources and discovering new deposits.

Western Areas is on track to become a significant, low cost nickel producer operating long life underground mines at Forrestania with production starting in the second half of  2006.  For the coming year the companies priorities and targets are :

Priorities:

1. Stage One ore production from the T1 orebody - > 6,000 tpa Ni

2. Bankable Feasibility Study for Stage Two expansion

3. Commence Stage Two mine development to access Flying Fox T5

4. Commence construction of 250,000 tpa concentrate plant

 

Goals:

1. 50% increase in Flying Fox resource to ~ 100,000 t of contained Ni

2. 50% increase in Diggers South resource to ~ 45,000 t of contained Ni

3. 50% increase in New Morning/Daybreak resource to ~ 20,000 t of cont. Ni

4. Build Ore Reserves to support a min 10 year mine life at ~10,000 tpa Ni

5. Discover a new massive sulphide deposit at Forrestania