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Western Areas Ltd.
Summary
| Project: | Forrestania | |
|---|---|---|
| Deposit: | Forrestania | |
| Location: | Australia | |
| Commodities: | Nickel | |
| Date: | 7/17/2019 | |
| Report Code: | JORC | |
| Report Type: | Resource Estimation | |
| Project Stage: | Active Mining & Production | |
| Report details: | 17-7-2019: Western Areas Ltd. announces a Resource Estimation report for its Forrestania deposit at the Forrestania project. Resource and reserve update plus drill results incl. 5m @ 1.06g/t Au. Western Areas (“WSA” or the “Company”) (ASX: WSA) is pleased | |
| Resources: | (Reserve, Prob.): 4.308Mt @ 2.7% Ni at Forrestania total | |
| CP/QP: | [Resources]: Andre Wulfse, Marco Orunesu Preiata, Graeme Gribbin (Internal) | |
| ABSTRACT: | Western Areas (“WSA” or the “Company”) (ASX: WSA) is pleased to report a strong quarter of cashflow generation, while also meeting all production and cost guidance metrics for FY19. The early works programme at the Odysseus project was completed during the quarter, demonstrating the Company’s commitment to this long-life project that is expected to underpin Western Areas’ long term nickel production. The Forrestania operation continued to operate in line with plan, producing 21.7ktn of nickel in concentrate for the full year. June quarter sales of 5,890 nickel tonnes in concentrate were the highest for the year, benefiting from the drawdown of nickel concentrate awaiting shipment at the end of the previous quarter. Strong free cashflow of $27.6m for the period was achieved due to increased quarter-on-quarter nickel tonnes delivered to customers, a less volatile commodity price and a A$10.3m cash receipt on 1 April related to a concentrate shipment at the end of the March quarter. Importantly, cash plus nickel sales receivables continued to build during the quarter, increasing to A$157.1m (March quarter A$149.9m), confirming the robustness of the underlying business. The cash position is expected to be further enhanced, should a proposed change of control transaction for Kidman Resources Ltd complete during the coming quarter, with Western Areas anticipating it will receive A$33.1m for its 17.4m shares in Kidman. The Odysseus Project early works package was completed on time and on budget. This included the rehabilitation of the decline down to the 10,000m RL pump station (500m below surface), with pump station mechanical and electrical designs complete. Further, the dismantling of the shaft headgear and winder in South Africa has commenced, with an expected delivery into Perth during the third quarter of FY2020. The Company also successfully recruited experienced project construction personnel. Work continued on mining studies for the AM5/6 deposits, with the potential to mine these deposits providing both upside and optionality within the mining production sequence at Odysseus. | |
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