japan's appetite for uranium is growing, page-3

namibian u mkt caps pdn / ext / wme PDN $2.42b s/p $5.11
EXT $126m s/p $0.14
WME $53m s/p $0.18

All fully diluted basis.

All 3 companies have similar sized Uranium prospects in Namibia although obviously PDN are much further advanced in their project .

Should also be noted that PDN hold 100% of their prospect , EXT 50% and WME 80%.

WME comment: Now that the stoplosses have been cleaned out and traders moved on , I would expect a steady climb back to previous highs then a stronger move after the next announcement.

WME should be capped at the same level as EXT at this stage ... imo. Comments welcome.

SALTY

Dear Sir / Madam
WEST AUSTRALIAN METALS (WME)
ENTERS JOINT VENTURE ON NAMIBIAN
URANIUM PROJECT
The directors are pleased to announce that the Company has entered a joint
venture agreement to earn 80% equity in the Marinica Uranium Project in
Namibia.
The 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.
Exploration at that time located a number of other significant uranium bearing
palaeochannels, in this important province, including the Langer Heinrich
Deposit, which is now being developed for mining.
The Marinica palaeochannel is similar in size to Langer Heinrich being 17
kilometres in length and varying from 200 to 800 metres in width.
Previous drilling by others at Marinica reported uranium mineralisation ranging
up to 8.1 metres grading 480g/t U3O8. At an average thickness of 4 metres this
would equate to 49,000,000 tonnes, which again is a similar order of magnitude
to Langer Heinrich and others in the same province, but with a yet unknown
average grade.
Recent detailed exploration at Langer Heinrich has resulted in the identified
mineralisation being almost double the grade of the 1976 estimate, from 35.3
million tonnes averaging 360 g/t U3O8 to 32.3 million tonnes averaging 700 g/t
U3O8 (Paladin Resources Limited,2005).
Based on the published information and the identification of widespread uranium
mineralisation in the general area, WME believes that similarly significant
tonnages and grades can be found at Marinica, following use of more detailed
modern exploration techniques.
West Australian Metals Ltd
Details of the Marinica Palaeochannel Uranium Project, EPL 3287
Introduction
Exclusive Prospecting License 3287 is located between Windhoek, the capital city
of Namibia, and the port city of Walvis Bay. Significantly the project is located
in the same uranium bearing province as the Rossing Uranium Mine (hard
rock) supplying 7% of world production, and the Langer Heinrich
Palaeochannel deposit (soft rock deposit under development). Numerous
other uranium deposits and occurrences in the province are shown on the attached
diagram.
The license area contains the substantial Marinica palaeochannel system containing
secondary sedimentary-hosted uranium mineralisation. Other occurrences are known
in the licence area, for example at a locality to the north of Marinica where an estimate
of mineralisation totalling 4,500,000 tonnes grading 100 g/t U3O8 is previously reported
on the Namibian Ministry of Mines and Energy (MME) website (Ransom,
Falconbridge,1980).
Marinica Palaeochannel Deposit
The Marinica palaeochannel is of similar dimensions to the Langer Heinrich
Palaeochannel Deposit, located 120 kilometres to the south. The main
palaeochannel has a known length of approximately 17 kilometres and varies
in width between 200 to 800 metres (averaging 360 metres). The total amount
of uraniferous material is estimated as 49,000,000 tonnes based on an average
thickness of 4 metres, and a specific gravity of 2. Previous exploration appears to
have been limited and detailed modern exploration is planned in an attempt to locate
mineralisation that may be concealed beneath the clay cover.
Previous exploration (1970’s)
Reconnaissance drilling in several areas returned thicknesses of mineralisation
of between 3 to 5 metres and intersections of up to 8.1 metres averaging 480g/t
U3O8 (General Mining and Finance,1978).
The Namibian Ministry of Mines and Energy reports that “uranium anomalies are
associated with the domal structures and this indicates that these structures
have extended a considerable influence over deposition of secondary uranium
minerals.” And further; “On a regional scale the mineralisation tends to follow
the outline of three marble dome structures” (Bertram, 1975). This may indicate a
possible hard rock source, similar to the Rossing style of mineralisation, beneath the
palaeochannel.
The drilling found two distinctly different types of secondary uranium mineralisation. In
the northwestern portion of the area the mineralisation is present in weathered schist,
granite and pegmatites, filling joints, cleavage planes, fracture surfaces and the schist
planes in association with calcite and gypsum. The second type of mineralisation
occurs in calcrete deposits filling a palaeodrainage channel. Here the calcrete is
largely sand covered and is only exposed in a limited number of shallow excavations.
The mineralisation noted in these excavations is also associated with gypsum. The
carnotite tends to concentrate in nodular and tube-like structures in the host rock.
Some finely disseminated uranium minerals occurred in other excavations.
Further exploration is planned to fully evaluate the palaeochannel uranium
mineralisation for economically viable development and locate high-grade sections
suitable for mining. This will include radiometric surveying using modern techniques
West Australian Metals Ltd
and extensive drilling to detail the generally sporadic distribution of uranium
mineralisation. Exploration beneath the palaeochannel may locate hard rock
mineralisation related to the underlying domes similar to the Rossing deposit.
Other uranium targets in EPL 3287
Previous work within the granted EPL area has consisted of an aeroradiometric/
magnetic survey together with limited ground exploration. An occurrence
located 5 kilometres to the north of Marinica reportedly contains disseminated uranium
mineralisation in an eroded palaeochannel totalling 4,500,000 tonnes grading 100g/t
U3O8 (Geluk) ((Ransom, Falconbridge,1980, Namibian Ministry of Mines and Energy).
In the extreme southeast of this occurrence deposit, an area covering the western
extension of the Marinica palaeochannel contains carnotite distributed within calcrete
impregnated gritty sediments. Mineralisation occurs as blebs within the carbonate-rich
portion of the matrix. It is either finely disseminated or occurs as coatings around
quartz, schist or clay fragments.
In addition to the known surficial deposits a search will be carried out for hard rock
sources concealed beneath the alluvial cover that may have contributed to the uranium
mineralisation in the palaeochannels. The tributaries to the main palaeochannel have
not yet been explored. It is possible that these may contain high-grade zones of
uranium mineralisation.
Uranium Mining and Mineralisation in Namibia
WME has been attracted to Namibia as one of Africa’s more stable countries
and a principal uranium producer with the hard rock Rossing Mine
accounting for 7% of world production. This world class deposit is a low grade
(300g/t U3O8) open cut operation based on “hard rock” alaskite (a variety of
granite). Namibia’s second mine being developed is the Langer Heinrich
uranium deposit, a secondary transported and enrichment style of uranium
mineralisation. Deposited in fossil river sediments, this style of mineralisation is
defined as “Palaeochannel”.
The introduction of the Marinica Project presents WME with the opportunity to
identify resources in an area of significant, widespread uranium mineralisation
and to evaluate and secure other exploration and mining properties in a country
which supports the development of its uranium assets.
Regional Paleochannel Mineralisation in Namibia
Near-surface uranium deposits in Namibia occur on the coastal plain of the Namib
Desert, mainly between the Great Escarpment in the east and the “western cut-off line”
See attached figure). Here the deposits are associated with fluviatile environments
within paleovalleys of ancient rivers that flowed westwards from the Great Escarpment
during Upper Cretaceous and Lower Tertiary times (88 to 25 million years ago).
Climatically the Namib Desert is extremely dry, with all the major surficial uranium
deposits being found within the 100 mm isohyet and as a result the uranium deposits
were preserved.
The palaeochannel deposits are widespread occurring in preserved sections of fossil
river deposits that are generally not associated with hard rock deposits. Furthermore
during the 1970’s when active exploration was taking place, investigation beneath the
palaeochannels was largely ignored. It is believed that the potential still exists for the
discovery of further large hard rock deposits concealed beneath the thin surface cover.
West Australian Metals Ltd
Uranium mineralisation in the Namib Desert occurs chiefly in the form of the mineral
carnotite (vanadate of uranium and potassium). Carnotite is deposited interstitially
along grain boundaries, filling cavities and having maximum development in zones of
high porosity.
Regional Hard Rock Uranium Deposits in Namibia
The hard rock sequences of Namibia’s uranium province are the primary
source of the uranium contained in the palaeochannels. They vary from small
vein style occurrences to massive metasomatic replacement bodies of alaskite
(highly alkaline granite) intruding along major shears and structural domes (the
Rossing Uranium Mine).
The Rossing Mine (owned by Rio Tinto) commenced production in 1976 and
continues to this day. To date the Rossing Mine has produced about 70,000
tonnes of uranium (equivalent to US$5.8 billion at the current price of
US$40.50/lb). Two similar deposits, Valencia and Goanikontes, as yet
unmined are located northeast and southwest respectively within a similar
geological environment.
The Joint Venture Agreement on EPL 3287
WME may earn an 80% interest in the project by spending N$1,500,000 (A$335,000)
on exploration. The remaining 20% will remain free carried until a decision to mine
has been made. If WME earns the 80% interest in the licence it will apply to transfer
registration of its earned interest. WME will reimburse expenditure to date, to the
Namibian joint venture partner, Jaco Floris Smith. WME may elect to withdraw after
spending N$600,000 (A$134,000) on exploration. An Environmental Contract from the
Namibian Ministry of Environment and Tourism is awaited to begin the work
programme. A copy of the agreement has been submitted to the MME and all
necessary approvals in respect to the same will be sought.
In obtaining this opportunity the company has also entered into an agreement with
Mallee Minerals Pty Ltd for an initial cash payment of A$10,000, with a further payment
of $140,000 and the issue of three million fully paid shares and three million options
upon receipt of the consent of the Minister for the Company to be entitled to hold or
acquire an interest in the project.
New CEO, Leon Reisgys Appointed
On 28 March 2006, WME announced the appointment of Mr Leon Reisgys as
Company’s Technical Director and Acting Chief Executive Officer. He will commence
working with the Company and assume his board position as of 22 May 2006.
Mr Reisgys brings to WME extensive experience in the successful exploration for
and/or the development of uranium, base metal, precious metal and mineral sand
deposits in Australia and internationally. His experience includes 6 years as a uranium
geologist with Pechiney Australia Pty Ltd and Minatome Pty Ltd, a joint venture
company owned by the nuclear divisions of the French multinationals Pechiney and
Total.
During this period Mr Reisgys explored for and evaluated Australian uranium deposits
of all types, including unconformity, roll front, volcanic, granite hosted/Rossing type
and calcrete style deposits. He was a member of the teams credited with the discovery
of the Manyingee (WA) uranium deposit (8.08mt @ 0.1% U3O8 indicated, 6.663mt @
West Australian Metals Ltd
0.06% U3O8 inferred) and the Ben Lomond (QLD) uranium deposit (2.98mt @ 0.228%
U3O8).
Independent Expert
The report is provided by John D. Wyatt, Principal of Geological Investigations Pty Ltd,
who is qualified as a Competent Person, as defined by the JORC/VALMIN codes of
The Australasian Institute of Mining and Metallurgy. Mr Wyatt is a qualified geologist
and Fellow of the Australasian Institute of Mining and Metallurgy, having, in excess of
50 years experience in the assessment and evaluation of mineral assets both within
Australia and overseas.
This independent opinion is based on information provided by West Australian Metals
Limited, together with independently researched open file data from the Namibian
Ministry of Mines and Energy and other sources.
Yours faithfully,
for WEST AUSTRALIAN METALS LTD
D A Hamlyn
Executive Director
This report accurately reflects information compiled by Mr John Wyatt FAusIMM 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 Wyatt consents to the inclusion in the report of the matters
based on his information in the form and context in which it appears.