high-grade operation”, as described by the company’s Managing
Director, Dan Lougher.
The company increased Flying Fox’s expected mine life to
eight years, following its first material acquisition since listing
–
the purchase of Kagara’s nickel assets for A$68 million. The
assets included the high-grade Lounge Lizard deposit and nearly
300
square kilometres of exploration tenements at Forrestania,
immediately next to the Flying Fox mine.
In addition to these three key deposits, Forrestania’s further
resources include Diggers South, New Morning/Daybreak and the
Cosmic Boy concentrator plant, whilst away from Forrestania the
company has base metals development projects across Australia,
Canada and Finland.
The successful discovery of the two high-grade nickel ore
bodies at Forrestania is the basis for the company’s ongoing
growth strategy. It is committed to an exploration budget of $25
million this year, two-thirds of which is directed to the Forrestania
belt and being led by the proven team responsible for discovering
the original two ore bodies. The company believes that significant
potential exists for further discoveries, with the possibility for a
third mine. Success in this program will spell the added advantage
of natural leveraging of existing infrastructure.
“
Our priorities lie at Forrestania. We have an established
operation. We have 900 square kilometres of potential drilling
areas, so that is more than enough to keep us occupied,” said
Mr Lougher.
With Western Areas exporting 60% of its concentrates
through the port of Esperance to China, after the Magellan Metals
experience the company sensed the possibility for community
negativity, even though there are no toxicity issues with nickel.
So Western Areas delivered their nickel in lidded, closed-in half
height containers, which helped to cement their local reputation
as a good corporate citizen. “We spend a lot of time down at the
port and they really appreciate it,” said Mr Lougher.
Acknowledgement of the company’s exporting prowess
has come two years running, commencing in 2011 when the
company was announced as that year’s winner of the WA Industry
and Export Awards for the ‘Emerging Exporter’ category for
achievement by an enterprise in any industry sector that has been
exporting goods or services for three years or less. Then in the
2012
Awards, Western Areas took out double honours, winning
the Minerals and Energy Export Award, and the highly prestigious
Premier’s Award for Excellence. The awards were developed to
recognise business success, hard work and the entrepreneurial
spirit needed for businesses to grow and access new markets,
and Mr Lougher was delighted with the company’s achievement,
commenting “We are thrilled to be recognised for our hard work
and success”.
In the meantime, the company’s priority is to maintain its
margins by keeping its costs low, and ride the cycle of current
negativity due to the turmoil in global markets. “I think we’ve seen
the worst of things now,” said Mr Lougher. “We have an excellent
team of people that delivers what we say we deliver.”
Western Areas makes the health and safety of its people,
Above: Western Areas supports
research into the ecology of
the Carnaby’s Black Cockatoo
Left: Western Areas’
Environmental Officer,
Ashleigh Harris,
at Forrestania
Below: ‘Henrietta’ –
a Western Quoll living at
the core yard at Forrestania
MINESITE 2012
•
11