had a bash at 8.04: trade only atm

Western Areas clarifies access to Flying Fox decline
12:13, Thursday, 17 July 2008

Sydney - Thursday - July 17: (RWE Australian Business News) -
Following a release by Kagara Ltd (ASX:KZL) on July 8, Western Areas NL
(ASX:WSA) today sought to clarify statements included in the release
which related to Western Areas's Flying Fox mine decline.
Directors said, "Western Areas considers that certain statements
in Kagara's release could imply that Kagara may have access to the
Flying Fox mine decline in December 2009 and that Kagara's right to
access the decline is subject only to the decline having sufficient
haulage capacity and Kagara reimbursing a component of the decline
capital cost.
"The issues Western Areas wishes to clarify are concepts that
are intended to form the basis of an Access Agreement, the terms of
which are yet to be negotiated between Western Areas and Kagara.
"An Access Agreement will be required in the event that Kagara
intends to mine nickel ore on the Lounge Lizard tenement (M77/545) and
use Western Area's Flying Fox decline to bring that ore to the surface.
"Flying Fox is located on an adjacent mining tenement."

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The directors continued, "Western Areas rarely comments on other
company releases. However, we have received many enquiries on the impact
that Kagara's implied timing of access to the Flying Fox decline could
have on Western Areas's production.
"Western Areas has announced target production of 8000t nickel
from Flying Fox in 2008 ramping up to 14,000t (and potentially 20,000t)
by 2011.
"Based on Western Areas's feasibility studies, the decline is
expected to be fully committed to mine development and production at the
Flying Fox T1, T4 and T5 deposits (excluding potential extensions) at
least until 2014.
"The decline may also be extended to the T6 and T7 deposits
where drilling is in progress to define mineral resources in this area
of the mine.
"An existing Deed of Covenant describes Kagara's rights to
access the Flying Fox decline and defines the concepts that are intended
to form the basis of an Access Agreement."