Odysseus will have a 10-year life and produce about 164,000 tonnes of contained nickel concentrate.

Western Areas declared first ore from the Odysseus south orebody this month.

The company will stockpile ore on the run of mine pad while it builds its concentrator complex, which is due to be completed in the 2022 December quarter.

Western Areas may look to third party tolling arrangements in the shorter term.

"We now look forward to continuing ore production and construction activities, while also advancing offtake tenders for new nickel sulphide supply into the class one nickel market," Western Areas managing director Dan Lougher said.

Odysseus will be one of the rare WA underground mines to have shaft haulage.

Operations are continuing with the raise bore back reaming through 630 metres of development at a diameter of 5.7 metres.

This has completed Leg 1 of the shaft hoisting and intake air system.

"The raise bore breakthrough is also a key achievement that further de-risks project delivery and allows completion of the shaft sub-brace concrete works, as well as all remaining surface civil works, associated with the shaft," Lougher said.

"Importantly, the work was completed without a safety incident, for which credit must be given to the site management team and the raise bore contractor."

Civil works are expected to begin imminently to construct the sub-brace walls. That will be followed by the installation of services ducts.

Pilot hole drilling of Leg 2 will begin in the coming weeks, which will allow for development of the lower shaft.

Once the concentrator is online, the Odysseus mine will produce an average of 14,500 tonnes of nickel concentrate a year.

Western Areas had begun initial tenders for the offtake of concentrate.