Western Areas declares Spotted Quoll results outstanding

Australian miner, Western Areas, has reported that results from a scoping study for an open pit mine at its mineral resource at Spotted Quoll are outstanding.

The results have been estimated for an optimised pit which would extend to approximately 160 metres in depth.

The scoping study indicates an annualised production rate of approximately 8,000 tpa nickel, compared with the previously announced estimate of 5,000 tpa nickel.

Spotted Quoll, which forms part of the Forrestania nickel project, was discovered in October 2007 and Western Areas has plans to bring the pit into production in 2009.

The company has already announced an initial bonanza grade mineral resource containing 35,000t nickel and the scoping study demonstrates potential cash flow of around A$300 million from an open pit mine alone.

An updated mineral resource is expected to be announced within the next three months; three drill rigs are currently on site drilling between 200 metres and 400 metres depth.

Spotted Quoll will probably be developed in two stages: as a low cost open pit mine which will extend to approximately 160 metres depth and as underground mine. In the case of the latter, the mine depth and life are as yet unknown.