announcement, page-12

re: announcement is out. issued through
FIELD PUBLIC RELATIONS PTY LTD ABN 74 008 222 311
231 South Road, MILE END SA 5031
Ph: 08 8234 9555 Fax: 08 8234 9566
[email protected]
N E W S
• R E L E A S E •
Thursday 8 June 2006
MINISTER APPROVES AUSTRALIAN COMPANY’S
80% URANIUM JOINT VENTURE IN AFRICA
Ministerial approval has been granted for Australian explorer, West Australian Metals Limited (WME), to earn a majority stake in a uranium project in the Republic of Namibia.
Directors announced today that Namibia’s Minister of the Ministry of Mines and Energy had granted approval for the joint venture agreement entitling Perth-based WME to earn an 80% equity in the Marinica Uranium Project (EPL 3287), which the Company entered into earlier this year.
Previous drilling by other companies at Marinica has reported uranium mineralisation ranging up to 8.1 metres grading 480g/t U3O8 at an average depth of 4 metres.
The project is located in a rich uranium province which hosts the Rossing mine – supplier of 7% of the world’s uranium production - and the Langer Heinrich palaeochannel soft rock deposit which is currently being developed for mining by Paladin Resources Limited.
Covering 706 square kilometres in an area between the Namibian capital, Windhoek, and the port city of Walvis Bay, the WME project contains the Marinica Uranium Mineralised Palaeochannel. The palaeochannel is similar in size to the Langer Heinrich palaeochannel being 17 kilometres in length and varying from 200 to 800 metres in width.
“Past exploration appears to have been limited,” WME’s Chief Executive Officer, Mr Leon Reisgys, said today.
“Detailed modern exploration is now planned to locate mineralisation that may be concealed beneath clay and other cover both in the Marinica and secondary palaeochannels,” Mr Reisgys said.
“The regional geology also indicates the potential for concealed hard rock uranium targets in the project area, including Rossing-style mineralisation.”
Mr Reisgys said a major exploration program to delineate uranium deposits within the project area would commence as soon as the Marinica Uranium Project was
issued through
FIELD PUBLIC RELATIONS PTY LTD ABN 74 008 222 311
231 South Road, MILE END SA 5031
Ph: 08 8234 9555 Fax: 08 8234 9566
[email protected]
granted an Environmental Contract from the Namibian Ministry of Environment and Tourism.
“This permitting requirement is well advanced and WME executives will travel to Namibia over coming weeks to prepare initial work programs for Marinica,” he said.
“The proposed exploration program will include radiometric surveying, processing and interpretation of satellite imagery, geochemical sampling and drilling to define palaeochannels and to ascertain the nature and distribution of uranium mineralisation within the channel sediments.”
MEDIA CONTACT:
Leon Reisgys Kevin Skinner
West Australian Metals Field Public Relations
(08) 9321 7355 (08) 8234 9555
[email protected] 0414 822 631
8 June 2006
Company Announcements Office
Australian Stock Exchange Limited
Level 4
Exchange Centre
20 Bridge Street
SYDNEY NSW 2000
Dear Sir / Madam
MARINICA URANIUM PROJECT - NAMIBIA
MINISTERIAL APPROVAL RECEIVED FOR JOINT VENTURE AGREEMENT
The directors are pleased to announce that the Company has received the Honourable Minister of the Ministry of Mines and Energy’s (MME) approval for the joint venture agreement to earn an 80% equity in the Marinica Uranium Project in Namibia that was announced to the ASX on 19 April 2006.
The Marinica Project comprises a granted Exclusive Prospecting License (EPL 3287) covering 706 square kilometres which contains the Marinica Uranium Mineralised Palaeochannel, discovered in the 1970’s. The palaeochannel is approximately 17 kilometres in length, 200 to 800 metres in width, and is reported to average 4 metres in depth.
Drilling by others at Marinica reported uranium mineralisation ranging up to 8.1 metres grading 480g/t U3O8. Past exploration appears to have been limited and detailed modern exploration is planned to locate mineralisation that may be concealed beneath clay and other cover both in the Marinica and secondary palaeochannels. The regional geology also indicates the potential for concealed hard rock uranium targets in the project area, including Rossing style mineralisation.
A major exploration programme to delineate uranium deposits within the project area will commence following receipt of the Environmental Contract from the Namibian Ministry of Environment and Tourism. This permitting requirement is well advanced. Exploration will include radiometric surveying, processing and interpretation of satellite imagery, and drilling to define palaeochannels and to ascertain the nature and distribution of uranium mineralisation within the channel sediments.
West Australian Metals Ltd
Mr Leon Reisgys the Company’s Technical Director will be in Namibia over the coming weeks to prepare for the commencement of work programmes and to meet with senior officials from the MME and other government departments. Mr Reisgys brings to the Company extensive experience in the successful exploration for uranium and other deposits. His experience includes 6 years as a uranium geologist with companies owned by the nuclear divisions of the French multinationals Pechiney and Total.
Yours faithfully,
Leon Reisgys
Technical Director and CEO
This report accurately reflects information compiled by Leon Reisgys FAusIMM, a Director and fulltime employee of the company, who has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of “The Australian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves.” Mr Reisgys consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.