Western Areas Announces Significant Increase in Odysseus High Grade Nickel Resources and Upgraded Disseminated Indicated Mineral Resources

PERTH, AUSTRALIA--(Marketwired - June 15, 2017) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Western Areas Ltd. (ASX:WSA) "Western Areas" or the "Company") is pleased to announce that the Company has trebled the defined high grade Massive Sulphide Mineral Resource at the Cosmos Odysseus Project ("Project" or "Odysseus"). A significant percentage of the Disseminated Inferred Mineral Resource at the Project has also been upgraded to the Indicated category providing increased confidence and flexibility in the Definitive Feasibility Study that is currently underway.

Key highlights from the Mineral Resource update include:

• A 311% increase in the Total Massive Sulphide Resource to 22,838 nickel tonnes grading 8.4% Ni which now includes 8,836 nickel tonnes grading 6.1% Ni in the Indicated category;
• A 78% increase in the Odysseus North disseminated Indicated Resource to 81,156 nickel tonnes grading 2.6% Ni (previously 45,519 nickel tonnes grading 2.8% Ni);
• An overall increase in the Indicated to Inferred disseminated resource ratio from 77% to 94%, which includes a ratio increase of 56% to 93% in Odysseus North disseminated;
• The increase in Indicated Resource provides greater flexibility to the proposed mine design and schedule of the Definitive Feasibility Study; and
• The Total Odysseus Mineral Resource Estimate now stands at 7.9Mt @ 2.5% Ni for 199,174 nickel tonnes at a cut-off of 1.5% Ni.

Comparison of previous Xstrata (XST) and current WSA Resource

Western Areas Managing Director, Dan Lougher, said that it was pleasing to tick off another milestone for the Odysseus Project at Cosmos.

"The increase in the confidence level of the resources at Odysseus was one of the critical path items for the timely completion of the project DFS, and will support the definition of an Ore Reserve for the project. The amount of massive sulphides included from limited drilling and the increase in total nickel tonnes was above our expectation when we completed due diligence on this acquisition," Mr Lougher said.

"We are also pleased to advise that Piran Mining has been appointed as Project Manager for the DFS and has already commenced work. Piran Mining was Project Manager for the Spotted Quoll feasibility study which has turned into one of the great success stories for underground mining in Western Australia. Piran is well versed in the quality controls and high technical expectations driven by the Western Areas team, which was an important factor in making this appointment," Mr Lougher said.

CP STATEMENT:

The information within this report as it relates to Mineral Resources is based on information compiled by Mr Andre Wulfse. Mr Wulfse is a Fellow of AusIMM and a full time employee of Western Areas. Mr Wulfse has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.' Mr Wulfse consents to the inclusion in the report of the matters based on the information in the context in which it appears. 

FORWARD-LOOKING STATEMENT: 

This release contains certain forward-looking statements including nickel production targets. Often, but not always, forward looking statements can generally be identified by the use of forward-looking words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "continue", and "guidance", or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production and expected costs. 

Examples of forward-looking statements used in this release include: "the Disseminated Inferred Mineral Resource at the Project has also been upgraded to the Indicated category providing increased confidence and flexibility in the Definitive Feasibility Study". 

These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements.

This announcement does not include reference to all available information on the Company or the Cosmos Nickel Complex and should not be used in isolation as a basis to invest in Western Areas. Any potential investors should refer to Western Area's other public releases and statutory reports and consult their professional advisers before considering investing in the Company.

For Purposes of Clause 3.4 (e) in Canadian instrument 43-101, the Company warrants that Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

Contact

Western Areas Ltd.
Dan Lougher
Managing Director
+61 8 9334 7777
dlougher@westernareas.com.au

Western Areas Ltd.
David Southam
Executive Director
+61 8 9334 7777
dsoutham@westernareas.com.au
www.westernareas.com.au

FTI Consulting
Shane Murphy
+61 8 9485 8888 / 0420 945 291
shane.murphy@fticonsulting.com