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Western Areas jumps on nickel hits

STUART McKINNON, The West Australian
October 5, 2011, 9:48 am

UPDATE 1pm: Western Areas shares leapt after the nickel miner said it was confident of extending the lives of its Flying Fox and Spotted Quoll mines to 10 years based on encouraging drill results from below the two ore bodies.

Western Areas said at Flying Fox, recent drilling had intersected high grade massive sulphide in the T6 deposit, about 100m below the T5 deposit where mine development was already in progress.

Initial results had returned an intersection of 34.7 metres of massive sulphide with an estimated average grade of 7 per cent nickel.

Western Areas said at Spotted Quoll, recent drilling below the stage one ore reserve returned an intersection of 3.3 metres at 8.3 per cent nickel near the southern boundary of the stage two deposit.

Managing director Julian Hanna said the results provided encouragement on the potential for Western Areas to reach its short term goal of extending mine life at Flying Fox and Spotted Quoll.

"The aim of this drilling is to achieve a significant upgrade in mineral resources at both mines within the next few months," he said.

Western Areas shares were up 47 cents, or 11.19 per cent, to $4.69 shortly before the close of trade after hitting an intraday peak of $4.81.

http://au.news.yahoo.com/thewest/business/a/-/wa/10403061/western-areas-jumps-on-nickel-hits/