Mining of the Agnew nickel deposit commenced in 1970 using a variety of underground mining methods, though with mixed success due to the difficult ground conditions. WMC Resources Ltd acquired the operation in 1989, and commenced nickel production with an open pit. In 1995 all production reverted to the rejuvenated underground mine, using exclusively SLC (sublevel caving) methods. Currently the mine produces 1.4 Mt per annum, at an average grade of 1.74 per cent Ni. Underground mining of the Perseverance orebody has always presented significant challenges due to the difficult ground conditions in the weak and altered ultramafic rocks. The range of problems include areas of swelling minerals, intense and extremely weak shear zones, relatively high in situ stress, and in other areas very brittle rocks. Under these conditions rock mechanics input has been and remains a critical element of the mining strategy. Severe ground behaviour difficulties down to a depth of 500 m below surface prompted a review of the mining strategy for the large disseminated nickel orebody, including evaluation of alternative mining methods. However, sublevel caving was ultimately selected as the preferred method, and a re-design of the SLC cross-cut layout followed. A selection of rock mechanics investigations of interest are described, including complex virgin stress measurements, detailed ground behaviour monitoring, and the use of non-linear stress analyses to re-design the mine layout. Subsequent ground behaviour, support design and production scheduling are also described.