Western Areas strikes deal with Reed Resources

06 March 2007 | 03:59 Code : 13072 Geoscience events
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Western Areas has executed a Heads of Agreement with Reed Resources to....

  Western Areas has executed a Heads of Agreement with Reed Resources to explore three target areas at Mt Finnerty, located 150km northeast of Forrestania in Western Australia.

Under the terms of the agreement, Western Areas can earn up to 65 percent interest in the nickel rights by funding two stages of exploration on the Mt Finnerty tenements, which are granted and available for immediate work. According to Western Areas, exploration at Mt Finnerty will focus on three clearly defined nickel sulphide target areas. These defined target areas demonstrate anomalous geochemical signatures (up to 1% nickel and 400ppm copper), a 4km long soil nickel anomaly and a coincident 2km long copper anomaly and, basal contacts of high MgO ultramafic sequences with potential channel embayments.Western Areas' Managing Director, Julian Hanna said the agreement was consistent with the company's strategy to conduct exploration for high-grade nickel sulphide deposits in highly prospective, yet under-explored areas in the Forrestania region. “We currently have substantial land holdings in the region,” Mr Hanna said. “This agreement with Reed enables us to cast an even wider net for exploration opportunities within this highly mineralised region.” “Western Areas is actively exploring the region to supplement our production from the Flying Fox mine and anticipated production from a second mine at Diggers South,” he said. Western Areas intends to commence an exploration program at Mt Finnerty as soon as possible.

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