Location:
Australia, Western Australia
Nearest Landmark:
KALGOORLIE
Distance from Landmark:
180 km
Direction from Landmark:
East
Latitude:
30 Degrees 39 Minutes (South)
Longitude:
123 Degrees 15 Minutes (East)
Western Areas announced a significant increase in the Probable Ore Reserve within the T4 and T5 deposits at the Flying Fox Mine, located 180km east of Kalgoorlie in Western Australia. Total Probable Ore Reserves at Flying Fox are now approximately 1.38 million tonnes at an average grade of 5.2% nickel containing 71,860 tonnes nickel. The combined T4 and T5 ore reserves now extend continuously over 450m vertical extent.
Western Areas NL report Major progress was made at the Forrestania Nickel Project during the September quarter. Western Areas reported record nickel sales, there was an 11% increase in mineral resources at Flying Fox and mine development commenced at Spotted Quoll. Additionally site works commenced for the expansion of the nickel concentrator and further high grade nickel was discovered below the current mineral resource at Spotted Quoll. Western Areas announced an option to acquire the BioHeap leaching technology to treat lower grade ores and new projects in Finland. The Board believes the Company is in a strong position to benefit from strengthening nickel prices and to generate significant cash flow from the Flying Fox and Spotted
Quoll mines. Western Areas had A$90.5M cash (an increase of A$10.3M from the 30 June) at the end of the quarter. In addition, receivables increased to A$21.6M and ore and concentrate stockpiles at cost were valued at A$23.3M at end of the quarter.
Western Areas today announced revised mineral resource estimates for the Flying Fox T4 and T5 deposits as well as initial mineral resource estimates for the T6 and T7 nickel deposits. Based on the revised mineral resources, ore reserves for T4 and T5 are being upgraded which is expected to have a positive impact on mine production and grade from early 2010 onwards. High grade mineral resources at Flying Fox now comprise 1,584,500 tonnes at an average grade of 6.0% Nickel, containing 95,370 tonnes nickel. This is an 11% increase in contained nickel from the published mineral resources for Flying Fox as at 30 June 2009, after mining depletion.
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