Barminco signed by Western Areas

Nickel miner Western Areas has awarded an initial three year underground mining contract for its Spotted Quoll project, near Kambalda, to Barminco Mining Contractors.

The company said mine decline development is due to start from 70 metres depth by the end of April, with the first ore scheduled for February 2012.

Western Areas also announced today drilling programs had continued to intersect high grade nickel mineralisation at Spotted Quoll.

The drilling results led Western Areas to increase its exploration target for its stage two extension at the mine to between 40,000 and 60,000 tonnes of contained nickel.

Western Area said the potential was there for a significant extension to both mine life and annual production rate.

The company's previously announced stage one underground feasibility study estimated an eight-year mine life, producing up to 10,000 tonnes per year of nickel in ore.

At 11:33AM (WST) Western Areas shares had gained 2.44 per cent, to trade at $7.15.