Western Areas is on track to ramp up production later this year at the Flying Fox prospect, part of its Forrestania Nickel Project in Western Australia.

The company aims to lift production at the T1 ore body to 20,000 tonnes per month at an average grade of more than 4% nickel. This will enable Western Areas to meet the target of about 8000 tonnes of nickel concentrate in 2008.

The increase in production is expected to begin early in the June quarter and will come from two large stope blocks which contain than 180,000 tonnes of ore at 5.1% nickel.

Stoping operations are ongoing in the T Zero ore body and in the top level of T1. Approximately 70,000 tonnes of ore has been mined from the T Zero and T1 ore bodies and 65,000 tonnes have been milled at Norilsk's Lake Johnson concentrator.

Western Areas also aims to increase ore haulage capacity from deeper deposits in the Flying Fox mine with the initial study for a raise bored shaft from the T4 ore body due for completion in the March quarter. The mine decline is at 470m depth and should access T4 in December 2008.

Positive T4 drilling results are continuing at with one hole intersecting matrix sulphides 40m north of previous drilling, increasing the width of the ore body.

A revised interpretation of Flying Fox highlights the continuity of high grade massive plus disseminated sulphide over a wider area. Below T1, mineralization now extends more than 700m in a zone up to 600m wide from the top of T4.

Meanwhile surface earthworks for the Stage One concentrator at Cosmic Boy are complete and construction is due to start at the end of March.

www.westernareas.com.au