rm research report

RM RESEARCH PTY LTD IS A CORPORATE AUTHORISED REPRESENTATIVE OF RM CAPITAL PTY LTD (AFSL 221938)


 




Maiden resource statement for Marenica Uranium Project 14th January 2008
Recommendation: SPECULATIVE BUY
GICS Industry: Materials
Capital Structure:
Share Price A$0.30
Fully paid ordinary Shares 269.1m
Listed Opt (ex 5c, exp 24/08/08) 51.4m
Unlisted Opt (ex15–18.8c, exp 11/07-11/099 5.6m
Market Capitalisation - undiluted A$80.7m
Approx Cash Position (31/12/07) A$1.5m
Share Price Year High-Low A$0.44 -0.145
Directors:
Non-Executive Chairman Rodger Johnston
Technical Director/CEO Leon Reisgys
Executive Director Terence Shanahan
Major Shareholders:
Shareholder Shares %
ANZ Nominees Limited 66.9m 24.9
Nefco Nominees Pty Ltd 22m 8.2
Malacca Capital Limited 15m 5.6
Accord Investment Corporation P/L 8.5m 3.2
Eurobond Trading Limited 7.7m 2.9
Share Price History:
INVESTMENT HIGHLIGHTS

West Australian Metals Ltd (“WA Metals” or “the Company”) has an 80%
interest in the prospective Marenica Uranium Project in Western Namibia;

The Company has announced an initial JORC-compliant Inferred Resource
containing 32Mt @ 213ppm U3O8 for 15m pounds of contained U3O8;

The reported resource areas occupy a very small portion (around 11 km2) of
the Marenica Palaeo-drainage system;

Broad spaced sampling suggests the presence of additional mineralisation
within the Resource area. WA Metals believes this area has the potential for
a further 8-12 million tonnes at an average grade of 140-180ppm U3O8 (2-5
million pounds U3O8);

Further potential to delineate additional uranium resources have been
outlined through down hole logging of old holes and reconnaissance RC
drilling within the Marenica Palaeo-channel. An area of elevated radon gas
defining a potential new mineralised palaeochannel measuring 10km in
apparent strike length has also been identified in the SE corner of the project;

The mineralisation defined to date is very similar to the nearby Trekkopje and
Langer Heinrich deposits. The Project is also prospective for “Rossing” style
mineralisation;

Notably, Areva has recently completed a US$2.5 billion friendly takeover bid
for UraMin Inc whose Trekkopje Project (located immediately south of
Marenica) contains a resource of 560Mt @ 135ppm U3O8. Mineralisation at
Trekkopje displays similarities to that found at Marenica;

Further drilling has commenced in and adjacent to the resource area with the
objective of adding further resources;

Political hurdles to production and export should be low as Namibia as a
leading member nation of the International Atomic Energy Agency and
currently an exporter of uranium products.
OUTLOOK

WA Metals continues to advance the Marenica Uranium Project with a multifaceted
exploration programme;

The Company has announced a maiden Inferred Resource within a small
area of the project – the grade of the Resource is comparable to other
economically viable Projects in Namibia;

WA Metals management believe that there is excellent potential to
substantially increase the Resource at the Marenica Project – both from
extensions within and adjacent to the current Resource as well as within
other areas along the extensive Marenica Palaeo-channel system;

The Company is trading at a modest A$7.80/pound of U3O8 (compared to a
market average for junior explores of A$9.50), however this does not reflect
the enormous exploration upside and recent takeover premium attached to
UraMin by Areva.
lots more to read on the website