Nickel Company:Western Area WSA.TO
Preface:
(1)I know next to nothing in terms of evaluating the resources
of mining companies. So I cannot evaluate what follows:
Below is information about WSA.to that
(a) I stumbled accross on google and
(b) went to their Web Site to get more info
Their most recent News release is the LAST THING in this
post.
(1) From their March 2006 financial thingie:
1. Mine production will extend over a six and a half year mine life, assuming production only from the current T1 and T5 Ore Reserves.
2. During 2010, annual production at Flying Fox will reach a maximum of approximately 13,500 tonnes of nickel in concentrate.
3. Estimated cash costs at Flying Fox will be approximately US$1.85 per pound of payable nickel over the life of the mine.
4. Assuming a price of US$5.50 per pound for nickel and a flat exchange rate of 0.75 (A$/US$), the net project cash flow from T1 and T5 is estimated to exceed A$250 million.
5. Assuming the current price of US$8.00 per pound for nickel and a flat exchange rate of 0.75 (A$/US$), the net project cash flow from T1 and T5 is estimated to exceed A$500 million.
westernareas.com.au
(2) Link to their Web Site
westernareas.com.au
(3) Stock price is CN2.30 and sym is WSA.TO
(4) Current News Release
WSA announces excellent results continue at Flying Fox T5 and first resource estimate for T Zero deposit
www.westernareas.com.au
ASX & TSX Symbol: WSA
/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES/
WEST PERTH, Western Australia, July 28 /CNW/ - The Board of Western Areas is pleased to announce further encouraging results from different areas of the 100% owned Flying Fox nickel mine.
Flying Fox - T5 deposit
The recent drilling program designed to test for potential extensions south of the current T5 ore reserve (849,000 tonnes at 5.9% nickel containing 49,500 tonnes nickel) has been very successful with several drill holes
completed to date intersecting significant widths of massive sulphides.
In particular, drill hole FFD 163 W10/W2 intersected a 15.7m zone of massive sulphides overlain by 19.0m of disseminated sulphides approximately 100m south and above the T5 ore reserve.
The true width of the massive sulphide zone in FFD 163 W10/W2 is estimated to be approximately 7m. Although assay results are awaited to confirm nickel grades from the recent drill
holes, it is considered that potential exists to significantly increase the size of the high grade T5 deposit.
Assay results from these drill holes will be reported when available and drilling is continuing at T5. The recent intersections are shown on the longitudinal section included with this release.
Flying Fox - T Zero (North) deposit
An Indicated Mineral Resource of 8,600 tonnes at an average grade of 7.0% nickel containing approximately 600 tonnes nickel has been estimated for part of the T Zero deposit, north of the dolerite dyke. Mine design work has been
completed which has resulted in an estimate of the recoverable mining inventory of 12,700 tonnes at a grade of 4.4% nickel. The mining inventory does not comprise a JORC compliant ore reserve but is sufficiently delineated
for mining.
T Zero (North) is small in comparison to other deposits at Flying Fox but is significant as it is located adjacent to the path of the current decline and will enable early ore production before T1. Mining at T Zero is expected
to commence in the December quarter.
In addition, assay results have been received for the first drill hole testing for extensions to T Zero, south of the dolerite dyke. Drill hole FFD 177 intersected 6.7m @ 4.0% nickel (including 2.0m @ 6.3% nickel) hosted in granite. The result confirms the potential for an extension to T Zero in this area. Drilling is in progress to test a strong down hole EM conductor south of the dolerite dyke.
Discussion
Ongoing drilling results at T Zero, T4 and T5 provide encouragement that the Company will reach the previously announced target of 100,000 tonnes of contained nickel at Flying Fox.
Flying Fox is a strongly mineralised system with significant widths of high grade massive sulphides occurring in all the major rock units (ultramafics, sediments, pegmatite dykes and granite intrusions). Drilling is
focussed within the 'target zone' (shown in yellow in the longitudinal section available on the web site) however potential at Flying Fox also exists outside
this area.
Other Developments
A third surface diamond drill rig is scheduled to commence drilling at Forrestania in early August. This will be used to test for depth extensions to the Diggers South resource (for the pre feasibility study) and to test some of
the backlog of regional exploration targets. Further progress has been made in gaining environmental approvals for the two priority nickel targets located 1km north of Flying Fox. Drilling in this area is expected to commence in
early September.
TABLE RESULTS
cnw.ca
Please note:
If someone determines that they have decent grades of
nickel - and its cost effective - please YELL back.
You do NOT have to justify your opinion
Per their Web page they are supposed to start PRODUCTION
in March 2007
I do not know how many shares are outstanding.
regards,
John |
