| PERTH, AUSTRALIA--(Marketwire - March 4, 2012) - |
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The Board of Western Areas is pleased to announce the Company has reached agreement with Kagara Limited ("KZL") to purchase 100% of Kagara Nickel Pty Ltd ("Kagara Nickel") including the high grade Lounge Lizard nickel deposit for A$68 million. The Lounge Lizard deposit is located adjacent to Western Areas' 100% owned Flying Fox nickel mine at the Forrestania Nickel Project.
As per KZL's mineral resource statement announced on 20 September 2011, the Lounge Lizard deposit contains a high grade Indicated Mineral Resource of 743,000 tonnes at a grade of 5.8% nickel for a total of 43,000 tonnes contained nickel. In addition there is a published lower grade disseminated Indicated Mineral Resource of 4,428,000 tonnes at a grade of 0.8% nickel for 36,000 tonnes contained nickel. Kagara Nickel's other assets include over 300km2 of tenement ground in the surrounding Forrestania project region, with many holdings situated immediately adjacent to existing Western Areas' Forrestania tenements.