Fowlers Bay Nickel Project

• Fowlers Bay comprises a 700 square kilometre exploration licence located about 150 kilometres west of Ceduna (Figure 1).  A review of the project in 2012 by a nickel sulphide exploration consultant concluded that it is a world class, greenfield exploration target area, and it is being promoted as such by the South Australian government geological survey.
• A gravity geophysical survey was completed in November 2013 over a rectangular target area approximately 9 km long by 3.5 km wide, elongated in a northerly direction. The results showed good correlation between a north-south trending magnetic zone, defined by an earlier aeromagnetic survey. The new gravity data suggests that the magnetic zone is comprised of mafic and possibly ultramafic rocks that may contain nickel sulphides. Evidence for this comes from widely scattered drill holes completed by previous explorers which penetrated to basement through the Eucla Basin cover.
• Exploration activities for the project are being funded by joint venture partner Western Areas Limited (ASX: WSA) (Western Areas), which is a key part of Western Areas’ aggressive exploration push in the Western Gawler region of South Australia.
• Western Areas earned a 90% interest in the Strand-line Farm-in and Joint Venture Project after meeting the Stage 2 earn-in and expenditure requirement of $1,200,000. Exploration activities during the quarter focused on the interpretation of EM datasets and drilling results received.