Western Areas (WSA) Update

Submitted by Craig Strzelecki on 18 May, 2007 - 10:57

Western Areas (WSA) is a dual-listed ASX/TSX nickel explorer that has recently made the leap to producer and has been a stand-out performer for the calendar year to date, with its shares up over 40 percent. Recently, sharemarket analysts' Macquarie Research Equities have initiated coverage and said that WSA is an "emerging nickel producer with multiple projects, a strong production growth profile and compelling exploration potential". The company's flagship asset, the Forrestania nickel project, is located around 400km east of Perth, Western Australia. Western Areas have effectively reinvented Forrestania through the rapid discovery of significant new high-grade deposits. The project now has an aggregate resource base of over 200kt contained nickel and a clearly defined growth pipeline to +18ktpa nickel-in-concentrate by 2011. Flying Fox is WSA's first producing mine at Forrestania. The mine has been designed to access a number of high-grade massive sulphide orebodies, with the T1 and T5 deposits composing the majority of current mining inventory. Progressive underground development is expected to deliver production growth from 0.5kt nickel-in-concentrate in FY07 to 9.2kt in FY09, and over 12kt in FY11. Western Areas (WSA) has progressively delineated a second potential mine, Diggers South, which is located around 40km south of Flying Fox. This lower grade project is currently the subject of a pre-feasibility study, expected to be completed later this quarter. Exploration upside: The company also has an enviable pipeline of further development opportunities and advanced exploration targets. WSA is set to aggressively explore the broader Forrestania region and its prospective properties in Manitoba, Canada. They believe the likelihood of further exploration success around Forrestania is high. WSA is an emerging nickel producer with multiple projects, a strong production growth profile and compelling exploration potential. Asset location is geopolitically attractive relative to other emerging players. An aggressive exploration program targeted into a proven nickel province increases the likelihood of further significant exploration success over the next few years.

Western Areas N.L. is listed on the Australian Stock Exchange (ASX) under stock code WSA. You can view their investor website here. WSA was listed on the ASX on 28 July, 2000. David Cooper is the chairman and Julian Hanna is the Managing Director for Western Areas. WSA is a nickel mining and exploration 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 mining and developing a high grade nickel mine at Forrestania (Flying Fox) and is spending approximately A$12 million per annum on exploration aimed at building resources and discovering new deposits. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade WSA. Check your charts and good luck with your share trading!