Shares in Western Areas were higher after it announced a new nickel discovery at its Forrestania project east of Hyden.
The company announced this morning it had encountered high grade nickel sulphides under its existing New Morning deposit
Preliminary estimates showed a 2.7 metre interval with an average grade of 5.5 per cent nickel, including 2.1 metres at 6.9 per cent nickel.
"Assay results are being expedited from the drill core to confirm nickel grades," the company said.
Managing director Dan Lougher said inspection of the drill core indicated remarkable similarity to the positioning and style of the company's Flying Fox T5 high-grade orebody nearby.
"We will await the outcome of the down hole electro-magnetic survey over the weekend, and if the next few drill holes return additional high grade intercepts, we have the drill rigs and funds already available to quickly accelerate the rate of drilling at this new target," he said.
New Morning is located midway between Western Areas' Flying Fox and Spotted Quoll mines.Shares in the company were up 14 cents, or 3.24 per cent, to $4.46 at 8.50am.
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