Paradigm Shift at West Australian MetalsThe promises that I made...

Paradigm Shift at West Australian Metals
The promises that I made to you at the West Australian Metals presentation were not empty.
Like I have been requesting for a long time, the management finally gave up on their
reserved form of communication and also worked on a new company profile. In the future,
you will want to especially address North American investors, then the Sydney Stock Market
and the investors there in light of the over-saturation which mostly consists of worthless
uranium companies that are not suitable. In contrast to what they used to do, the
management allowed people, at least during this presentation in Stuttgart, to get a glimpse
of how much uranium the investors in the Namibian Marenica licensed territory can expect at
a minimum. The amount is much higher than I have estimated up to now. The abundance
of positive information has recently prompted me to make public my current recommendation
to purchase West Australian Metals’ stock. Here is a brief summary of the most important
news up front.
It has been known up to now that the former Gold-Fields core area contains some 15 m.
pounds of uranium oxide with a cut-off at 110 ppm (JORC certified.) Already in the next 14
days, Leon Reisgys, the head geologist at WAM, will release an “official estimate” for the
business’ primary exploration area (C). This area which has already been heavily drilled and
analyzed, will contain at least 50 m. pounds of secondary uranium in my opinion (with an
unchanged cut-off of at least 110 ppm). A primary mine otherwise contained in the C
primary mining site will not be calculated into this estimate. Another JORC calculation for
this area will be put forward in July. Incidentally, I understand the words “at the least” to truly
represent an absolute minimum for my estimation. In light of the lab tests that have already
been obtained for a large section of samples from the C section, 70 m. pounds constitute a
realistic size. Furthermore, the paleacanals, the ones most loaded with uranium that is,
mostly consist of subterranean veins above the hard stone that appear to be just as rich in
uranium as Arevas Trekkopje-canal adjacent to the southern border, where you can correctly
assume that a decrease in the cut-off at the Trekkopje-level (80 ppm) is automatically linked
to a further augmentation of the uranium quantity. The cherry on top, as suggested by
Reisgys in his speech and also later by geologist Dr. Christian Schlag during questioning,
that in light of the magnificent breadth with promising ore quantities in the paleocanals in the
region, it can be assumed that Areva would lower the cut off to 60 ppm. It is then possible,
with the advancement of the so called Heap-Leach method, that this can be applied. You
will experience in the promised separate update, just how simply, inexpensively, and quickly
uranium can be extracted in Namibia using this method. Should Area C be able to be
carried over in a later production with a cut-off of 60 ppm, then my original prognosis of 100
m. pounds of uranium in the Marenica Project will already have been reached. Besides the
increased efforts in area C, every other section of the licensed territory will also be inspected
and drilled in the coming months. Likewise, the WAM management team will be
exhaustively busy with the primary uranium since the first drillings of section C will start
within a few weeks.
Summary: Marenica is possibly one of the licensed territories in Namibia with one of the
highest concentrations of uranium. the current sluggish stock market should be over by time
the new JORC study is make public, which will be July 2008 at the latest. Interest from large
North American investors will be warranted. New measures to raise capital will first be
available when the markets are again clearly trending upwards. Until then, at best 2.3 million
Aus $ in exercised stock options will flow into the company’s treasury. This money will be
able to last around another 6 months to enable the raising of further capital. Even though
WAM’s stock is currently dirt cheap, I still assume that the listing will very quickly rise again.
In light of the available quantities of uranium, I won’t back down from a projection of 1.25
euro per share in sight in the coming years.
Published by Martin Stephan April 2008 “True Wealth”