windarra update

Unit 8, Level 1, Churchill Court
331-335 Hay Street
Subiaco WA 6008
PO Box 190
West Perth WA 6872
Tel: +61 8 9382 8799
Fax: +61 8 9382 4760
ABN 60 060 525 206
ASX Announcement 16 March 2007
WNP Update
The Company is pleased to update shareholders on the progress of drilling
and work programs at the Windarra Nickel Project – WNP.
Drilling has continued to intersect massive nickel sulphide mineralization at
Denny Bore with NMD0004A intersecting two zones of massive sulphide
mineralisation which are currently being logged and core cut for assay.
Results will be released as soon as they become available.
Drilling is currently proceeding on NMD0005 which is located approximately
100 metres north-west of NMD0004 and is positioned to gain a further
understanding of the geological setting which hosts the high grade nickel
sulphide mineralization at Denny Bore. Progress has been slow due to poor
rig performance and break-downs though this should now improve with the
refurbishment of the main drilling engine completed. It is expected the target
zone will be intersected in the coming week.
The arrival of a second higher capacity diamond drill rig is scheduled for the
June quarter and is currently being prepared for transport by float from
Queensland to Kalgoorlie where it will undergo final hydraulic fit-out . It is
intended that this second rig will be utilized to complete the NMD0001F
DHTEM platform hole at Mt Windarra and to further define the high grade
massive nickel sulphide mineralisation located beneath the historic workings
at Mt Windarra.
The Company is pleased to advise that Mr Steve Eggart has been appointed
the initial mine manager. Steve comes to Niagara from the Norseman
operations of Croesus Mining and will guide the mine development during the
recommencement of operations. A little further down the track Steve will take
on the permanent responsibility as underground manager.
Mobilisation of the initial underground mining contract workforce is underway
with the arrival this week of key underground mining personnel, equipment
and stores. Erection of the heavy duty workshop is taking place and
installation of the electrical workshop is complete. Niagara’s electrical
supervisor, Arthur Anderson commenced duties at Windarra on Monday 12th
March.
The occupational, safety and health officer has been appointed and he will
commence duties at Windarra on 2nd April. A fully equipped ambulance has
been purchased and placed at Mt Windarra and, subject to our own

Unit 8, Level 1, Churchill Court
331-335 Hay Street
Subiaco WA 6008
PO Box 190
West Perth WA 6872
Tel: +61 8 9382 8799
Fax: +61 8 9382 4760
ABN 60 060 525 206
operational requirements, will be available for emergencies in the district if
required.
The portal haulage road at Mt Windarra has been re-established and
application for approval for re-entry to the mine decline to begin mine
refurbishment is progressing.
Independent resource calculations for the “G Shoot” at Mt Windarra, initially
down to the 10200RL (approximately 200 metres below surface), are
expected to be delivered late next week to assist in the mine planning now
underway. Resource calculations for the entire Mt Windarra mine area are
ongoing with digitization of historic exploration and mine records essentially
completed.
It is expected that G shoot will provide the first nickel ore from the WNP and
the Company is currently in discussions with a number of parties interested in
taking the product. First ore is scheduled to reach the surface in the
September quarter.
Installation of an extended power plant is underway. This is required for the
expansion of on-site services and for the commencement of de-watering of
the Mt Windarra mine and its refurbishment. Dewatering pumps have arrived
on-site this week with installation down the historic Mt Windarra mine shaft
scheduled to be completed by the month's end, subject to works approvals.
Piping for discharging the mine water is ready to be laid to the northern
tailings storage facility (NTSF) with welding due to commence shortly. It is
expected de-watering will begin by the end of the current quarter and continue
until the end of the calendar year or completion, whichever comes first. At this
point the mine will be completely dewatered allowing for mining operations to
proceed including decline development towards the high grade massive nickel
sulphide zone identified below the historic Mt Windarra mine workings.
Submission of the South Windarra Nickel Heap Leach proposal to relevant
government departments has occurred and the Company awaits the outcome.
As announced previously, our initial work will focus on the small (150,000
tonnes) low-grade nickel sulphide stockpile situated on the northern side of
the South Windarra pit. Test pits recently excavated from the surface of the
adjacent dump has confirmed the presence of an even larger tonnage of
nickeliferous material. Samples have been submitted for analysis and, whilst
technically we must wait for the results, visual examination leads us to a
confidence that the South Windarra Heap Leach project (SWHL) will expand
to include the much larger tonnages of material available in the adjacent
dump, as expected. At current nickel prices the cashflow projections are
robust.
Examination of other known nickel oxide resources is under way and we
expect that this work will result in a substantial extension to the life of this
operation at South Windarra.

Unit 8, Level 1, Churchill Court
331-335 Hay Street
Subiaco WA 6008
PO Box 190
West Perth WA 6872
Tel: +61 8 9382 8799
Fax: +61 8 9382 4760
ABN 60 060 525 206
The Company looks forward to updating shareholders on the progress of its
activities at the WNP over the coming weeks.
Douglas C. Daws
EXECUTIVE CHAIRMAN
Note: The information in this report that relates to exploration results is based on information compiled by Mr
Mick Elias, consulting geologist, who is a Fellow of the Australian Institute of Mining and Metallurgy. He has
sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to
the activity undertaken. He is qualified as a competent person as defined in the 2004 Edition of the “Australian Code
for Reporting Exploration Results, Mineral Resources and Ore Reserves”. He has consented to the inclusion of this
information in the form and context in which it appears. The Australian Stock Exchange has not received and does
not accept responsibility for the accuracy or adequacy of this release.