MARENICA PROJECT NAMIBIA NEW URANIUM TARGETS MAJOR PAST DRILLING PROGRAMS The Directors of West Australian Metals are pleased to report that a number of uranium occurrences and new targets have been identified as a result of an initial reconnaissance of the Marenica Uranium Project in Namibia. In addition, past exploration activities appear to have been greater and more focused than previously reported (ASX announcement 19 April 2006). Highlights • Approximately 32,000 metres and 2,000 holes drilled in the past; • Significant uranium mineralisation in four major anomalies covering around 7km2 identified by previous exploration; • New areas for palaeochannel mineralisation identified; and • Strong potential for primary uranium occurrences. Introduction The Marenica Uranium Project is located in Namibia and is in the same geological province as the Rossing and Langer Heinrich uranium deposits (Figure 1). 15 ° -25 ° -30 ° 20 ° -20 ° F F 250 kilometres 0 125 ANGOLA SOUTH AFRIICA BOTSWANA ZAMBIIA SSSooouuuttttttttthhh AAAtttttttttlllllllllaaaaaaaaannntttttttttiiiiiiiiiccccccccc OOOccccccccceeeeeeeeeaaaaaaaaannn REPUBLIC OF NAMIBIA EEEPPPLLL 333222888777 WWWIIIIIIIIINNNDDDHHHOOOEEEKKK WWWaaaaaaaaalllllllllvvvvvvvvviiiiiiiiisssssssss BBBaaaaaaaaayyyyyyyyy HHHeeeeeeeeennnnnnnnntttttttttiiiiiiiiieeeeeeeeesssssssss BBBaaaaaaaaayyyyyyyyy SSSwwwaaaaaaaaakkkkkkkkkooooooooopppppppppmmmuuuuuuuuunnnnnnnnnddddddddd Rossing Langer Heinrich RRRuuuuuuuuunnnnnnnnnddddddddduuuuuuuuu TTTTTTTTTsssssssssuuuuuuuuummmeeeeeeeeebbbbbbbbb OOOpppppppppuuuuuuuuuwwwooooooooo LLLLLLLLLüüüüüüüüüdddddddddeeeeeeeeerrrrrrrrriiiiiiiiitttttttttzzzzzzzzz KKKeeeeeeeeeeeeeeeeeetttttttttmmmaaaaaaaaannnnnnnnnssssssssshhhhhhhhhooooooooooooooooooppppppppp KKKaaaaaaaaarrrrrrrrriiiiiiiiibbbbbbbbbiiiiiiiiibbbbbbbbb LOCATION OF MARENICA URANIUM PROJECT EPL3287 NAMIBIA AFRIICA Map Area WEST AUSTRALIAN METALS LTD
FFFFFFFFFiiiiiiiiiggggggggguuuuuuuuurrrrrrrrreeeeeeeee 111111111......... West Australian Metals Ltd The Company recently entered into a joint venture whereby it could earn an 80% interest in the project which consists of a granted 706km2 Exclusive Prospecting Licence No. 3287. The licence covers the uraniferous Marenica Palaeochannel and other secondary uranium occurrences. The licence also covers ground prospective for Rossing style uranium mineralisation. Secondary Mineralisation – Palaeochannel and Pedogenic Past Drilling and Other Work The Geological Survey of Namibia has reported that to the end of 1982, when the area was relinquished, around 32,000 metres had been drilled in more than 2,000 holes on the Marenica Project. The work had focused on the northeastern sector of the project area where airborne radiometrics, supported by wide spaced trenching and pitting (Photo 1) located four major uranium anomalies (Anomalies 1 to 4, Figure 2) covering close to 7km2. Uranium mineralisation was also reported between and adjoining Anomalies1 to 4 within a broader airborne radiometric anomaly covering 18sq km. Photo 1. Trench from previous exploration The four major anomalies were further investigated by detailed radiometric, gravimetric and resistivity surveys, and percussion drilling - in places - to a 40mx40m grid. The closer spaced drilling was undertaken to a depth of 35 metres with holes radiometrically probed to allow log based grades to be calculated. The West Australian Metals Ltd mineralisation present in these anomalies consists of carnotite in surface calcrete and gypcrete and in palaeochannel - fill sediments (Photo 2). Carnotite and phosphoruranylite is also present in weathered granite, pegmatite and schists. Metallurgical studies are also reported to have been carried out on bulk samples including leaching testwork. Exploration work on the project ceased as a result of depressed uranium prices. Photo 2. Secondary uranium mineralisation (carnotite). New Targets Recent prospecting work by the company has shown that outside Anomalies 1 to 4, the licence remains under explored for palaeochannel type mineralisation with little evidence of past exploration activities. Extensive surface uranium mineralisation in calcrete, gypcrete and weathered basement was observed in the central and western sectors of the licence. Published maps do not record these occurrences. Also an apparent constriction in the interpreted position of the Marenica Palaeochannel near the centre of the licence (Figure 2) could serve as a control for the precipitation/formation of uranium mineralisation in this area. Any deposits in this area could be masked by recent sediments with little or no radiometric anomalism being detectable at -22 ° 14.6 ° 14.8 ° -21.8 ° 15 ° 0 5 10 kilometres HHHHeeeeeeeeennnnnnnnntttttttttiiiiiiiiieeeeeeeeesssssssss BBBBBBBBBaaaaaaaaayyyyyyyyy --------- 333333333555555555kkkkkkkkkmmmsssssssss IIIIIIIIInnnnnnnnnttttttttteeeeeeeeerrrrrrrrrppppppppprrrrrrrrreeeeeeeeettttttttteeeeeeeeeddddddddd CCCChhhhhhhhhaaaaaaaaannnnnnnnnnnnnnnnnneeeeeeeeelllllllll CCCCooooooooonnnnnnnnnssssssssstttttttttrrrrrrrrriiiiiiiiiccccccccctttttttttiiiiiiiiiooooooooonnnnnnnnn KKKKKKKKKaaaaaaaaarrrrrrrrriiiiiiiiibbbbbbbbbiiiiiiiiibbbbbbbbb --------- 999999999000000000kkkkkkkkkmmmsssssssss EEEPPPLLL 333222888777 NNNNeeeeeeeeewwww TTTTTTTTTaaaaaaaaarrrrrrrrrgggggggggeeeeeeeeettttttttt AAAAAAAAArrrrrrrrreeeeeeeeeaaaaaaaaasssssssss AAAAAAAAAnnnnnnnnnooooooooommmaaaaaaaaalllllllllyyyyyyyyy 333333333 AAAAAAAAAnnnnnnnnnooooooooommmaaaaaaaaalllllllllyyyyyyyyy 444444444 AAAAAAAAAnnnnnnnnnooooooooommmaaaaaaaaalllllllllyyyyyyyyy 111111111 AAAAAAAAAnnnnnnnnnooooooooommmaaaaaaaaalllllllllyyyyyyyyy 222222222 Date : June 2006 Anomalies 1 to 4 and New Target Areas, with Interpreted Location of Marenica Palaeochannel Scale : 1:250 000 WEST AUSTRALIAN METALS LTD EPL 3287
Legend Existing anomaly area Location of visible uranium outside major anomaly area New target area Interpreted palaeochannel EPL 3287 boundary FFFFFFFFFiiiiiiiiiggggggggguuuuuuuuurrrrrrrrreeeeeeeee 222222222......... West Australian Metals Ltd surface. This area, which extends over a distance of 25km, is of high interest for future exploration. Primary Mineralisation Systematic evaluation of the licence area for primary uranium deposits similar to Rossing, is also a major priority for the Company. The Rossing Deposit is located approximately 60kms to the south of the Marenica project and produces around 7% of the worlds uranium. The basement rocks in the project area belong to the Damara Sequence of Neo Proterozoic age. These rocks have been folded and intruded by pegmatites and granites forming a basin and dome tectonic setting. This geological and structural setting is similar to Rossing where uraninite is the major primary mineral with secondary phosphoruranylite also present. The pedogenic (soil related) mineralisation in the eastern sector of the Marenica licence is reported to follow the outline of dome structures with mineralisation occurring as carnotite and minor phosphoruranylite. The extent to which granitic and pegmatite bodies and Damaran rocks in the project area have been evaluated for Rossing, and vein style, mineralisation is unknown. It is planned to initially reprocess any existing radiometric and magnetic survey data that may be accessed with the objective of locating structural setting and/or lithologies which could host primary uranium deposits. Conclusions Areas of significant uranium mineralisation and radiometric anomalism were drill tested over the northeast sector of the Marenica licence in the 1970’s and early 1980’s. Although exploration information from this period is currently limited, this work has defined targets for future exploration and drilling by West Australia Metals. Detailed exploration data from past programs will be sourced and validated by the company as far as possible. This information, if located, could provide an excellent initial database for a more rapid re-assessment and evaluation of the project including the advancement of drilling programs to allow JORC Code resource estimation to be conducted. Additional to the above, the company plans to conduct geological mapping, radiometric and possible radon surveys over the licence area focusing on new potential targets in the centre and western parts of the tenement. Detailed evaluation of the extensive uranium mineralised areas reported as Anomalies 1 to 4 will also be undertaken. Preliminary drilling may be conducted to gain an understanding of the sedimentary sequence and tenor of the uranium mineralisation in these areas. West Australian Metals Ltd Work on the project ceased in the early 1980’s as a result of depressed uranium prices with exploration focused largely on the upper reaches of the Marenica Palaeochannel system. A large portion of the licence area is blanketed by sediments associated with current day drainage systems. This cover could be concealing uranium deposits in the western half of the licence associated with possible deeper valley – fill sediments and having little or no surface mineralisation or radiometric expression. Yours faithfully, for WEST AUSTRALIAN METALS LTD Leon Reisgys Technical Director and CEO This report accurately reflects information compiled by Leon Reisgys FAusIMM and Technical Director of West Australian Metals Ltd 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 this report of the matters based on the information completed by him in the form and context in which it appears.
WME Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held