Sydney - Tuesday - September 2: (RWE Aust Business News) - Western Areas (ASX:WSA) has a 118 per cent increase in the high grade mineral resource at Spotted Quoll, Western Australia. The revised mineral resource estimate now comprises a total 1,045,900 tonnes at an average grade of 7.2 per cent nickel for 75,140 tonnes of contained nickel to only 300m vertical depth. The majority of the mineral resource, 88pc, is in the high confidence indicated category. This excellent result confirms the potential for a major underground mine below the proposed open pit. Western Areas is already considering early development of an underground mine which could produce ore concurrently with the latter stages of the open pit. In this event, production could significantly exceed the target 8,000 tpa nickel from Spotted Quoll. A mining proposal for the Spotted Quoll open pit has been lodged and, assuming this is approved by the end of 2008, ore production is expected to commence in the September quarter 2009. The revised mineral resource rates Spotted Quoll as one of the world's highest grade and most continuous nickel deposits, less than 12 months since its discovery in October 2007. Importantly, Spotted Quoll remains open at depth and open along strike. The Spotted Quoll resource upgrade has increased the total amount of contained nickel in mineral resources at the Forrestania project to 312,730 tonnes nickel. Western Areas has set a new target to define 400,000 tonnes contained nickel from the Forrestania by the end of 2009.
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