28/10/2009 - 09:13

Great Western, WSA in $2.5m JV deal

28/10/2009 - 09:13

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West Perth-based Great Western Exploration will team up nickel miner Western Areas to jointly explore the Forrestania project in a $2.5 milion deal.

West Perth-based Great Western Exploration will team up nickel miner Western Areas to jointly explore the Forrestania project in a $2.5 milion deal.

 

The announcement is below:

 

Great Western Exploration Limited (ASX Code: GTE) is pleased to announce that it has entered a Joint Venture Agreement with Western Areas NL (ASX Code: WSA) to explore the company's Forrestania Project.

Under the agreed terms, WSA can earn up to 70% interest in the Project in two stages by spending $2.5 million.

Stage 1 - WSA to earn 51% by spending $1.0 million in two years;

Stage 2 - WSA to earn a further 19% by spending $1.5 million within five years;

There is a minimum commitment of $200,000 before WSA can withdraw from the JV.

The Forrestania Project comprises a total of 303km2 of area in the Forrestania region. The company believes that the Forrestania greenstone belt extends a further 12km south than previously thought, obscured by the remnants of a thin granite sill overlying the sequence. Within this sequence the company has intersected komatiite and sulphidic BIF units at least 6km further south and along strike of the last known ultramafic in outcrop or drill hole.

Western Areas NL owns and operates the Flying Fox nickel mine and other significant infrastructure in the region which includes nickel concentrator, grid power and plant & equipment. In addition to its operations, Western Areas also has an impressive discovery record since they commenced nickel exploration in the region, which includes the recent Spotted Quoll deposit.

Great Western believes this to be an excellent opportunity to progress the project further by leveraging off the considerable infrastructure, resources & expertise that Western Areas bring to the JV.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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