24/06/2009 - 14:27

Kagara boosted by Western Areas drilling

24/06/2009 - 14:27

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Shares in Kagara have closed higher after drilling at Western Areas' adjacent Flying Fox mine intercepted a good nickel result within the former's Lounge Lizard project.

Shares in Kagara have closed higher after drilling at Western Areas' adjacent Flying Fox mine intercepted a good nickel result within the former's Lounge Lizard project.

Kagara's share price closed up 3.5 cents to 68.5c today.

In a brief statement, Kagara drew attention to one particular drill result, 12.4 metres grading 8.3 per cent nickel, which it said was four metres within its Lounge Lizard tenements.

"This intersection has further confirmed continuity between Flying Fox and Lounge Lizard," Kagara said.

Other drill results within Flying Fox include 13.2m grading 10 per cent nickel and 5.3m grading at 10.2 per cent nickel.

Kagara is paying an initial $20 million to Western Areas, which will develop a 300m long decline from Flying Fox to Lounge Lizard in order for Kagara to conduct further drilling and potentially mine the resource.

Lounge Lizard currently has an initial resource of 1.15 million tonners grading 4.6 per cent nickel.

Meantime, as a result of the positive nickel drilling results, Western Areas said it will accelerate a range of its drill programs.

It said the priority is to test for further extensions to Flying Fox and nearby Spotted Quoll and to find another high grade deposit along the Western Nickel Belt at Forrestania.

Shares in Western Areas closed down four cents to $5.16 after reaching a high of $5.34.

 

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