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ASX Announcement
29 January 2008
WESTERN METALS PLOTS AGGRESSIVE GROWTH FOR 2008
DECEMBER 2007 QUARTERLY ACTIVITIES REPORT
Western Metals Limited (ASX:WMT) is pleased to report significant progress during the December quarter which has left it well placed to execute an aggressive growth strategy in 2008.
Western Metals is a diversified uranium, base metals and gold explorer with a portfolio of potential world-class projects in Africa, Australia and the America’s.
Managing Director, Mr George Bauk, said the company was determined for 2008 to be the year to transition Western Metals to become a notable resource business.
“With a highly experienced management team and cash reserves of more than $30 million, Western Metals has the resources to maintain both an aggressive exploration strategy and actively pursue corporate opportunities, particularly in light of the current uncertainty affecting international equities markets,” Mr Bauk said.
During the December quarter, the company made significant progress on all fronts in pursuit of its business strategy.
In Tanzania, where it has interests in uranium tenements covering more than 14,000 square km, drilling extended the known strike of high grade mineralisation at its Mtonya project, while trenching at the Grandfather prospect also returned significant high grade results.
The Company has also made two potentially major uranium discoveries from the first reconnaissance programme in the Ruvuma project, south of Mtonya.
In North America, Western Metals has substantially enhanced its asset portfolio by securing an option to acquire the highly prospective Snowbird Nickel Project in Canada’s Northwest Territories from BHP Billiton, while approvals were granted to commence drilling at the Glade uranium project in Southern Colorado.
In Australia, the Company completed a geological interpretation of the West Georgetown project in Queensland to identify targets in anticipation of securing access approvals needed to commence ground geophysical surveys and drilling in the second quarter.
Mr Bauk said the path to the Company’s growth outcome would require a balance of world class exploration programs complimented with targeted corporate activities.
“This is a complex process requiring dedicated resources and capital – to which we have already invested well in both and intend to utilise this unique position to our advantage,” he said.
“We have a highly skilled and balanced team with a cross section of capabilities required to run a dynamic growth business in our sector. We have also built a portfolio of world class exploration assets in base metals, uranium and gold, all of which individually have the potential to substantially grow the business.”
Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web:
www.westernmetals.com.au
ASX: WMT/WMTO
Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web:
www.westernmetals.com.au
ASX: WMT/WMTO
In 2007 Western Metals raised $32m in capital which has provided the opening balance for 2008 of $30m, as announced above.
“This secure position means that we can manage the work programs on current assets in an aggressive but responsible manner for some time to come.”
Mr Bauk said that while successful greenfields exploration will ultimately lead to the greatest multiples on investment, the Board was committed to complimenting this process through a program of acquisitions of advanced projects and, or, cash producing assets.
On the corporate front, Western Metals engaged Azure Capital as a corporate adviser to assist in identifying growth opportunities. The Company is currently evaluating a number of potential project opportunities that may come to fruition in the coming months.
Significant progress was made during the quarter to identify likely corporate and project opportunities. These investigations will progress through a rigorous but efficient assessment process in coming months.
The Company has also prepared an aggressive and fully funded corporate growth strategy for 2008 expected to cost in the order of $10 million. Exploration activities will be focused on its Tanzanian uranium projects where drilling is planned at a number of prospects in the Mtonya Corridor and accelerated reconnaissance work across its entire suite of projects.
Western Metals is also planning a rapid ramp-up of work at West Georgetown once all access approvals have been received.
Please refer to the attached December Quarter Report for details of the Companies activities during the period.
For further information contact:
George Bauk
Managing Director
Western Metals
(08) 6380 3600
Paul Downie
Porter Novelli (Perth)
(08) 9386 1233
0414 948 127
UPDATE ON EXPLORATION ACTIVITIES DECEMBER QUARTER 2007
Western Metals is please to provide an update on activities undertaken during the December Quarter 2007. Excellent progress has been made on all projects with delivery of activities consistent with company plans. Specific details on each project may be found on the WMT website (www.westernmetals.com.au) and as announcements to the Australian Securities Exchange.
TANZANIA
NEW URANIUM DISCOVERIES IN SW TANZANIA
Results from the regional helicopter supported field reconnaissance carried out in November 2007 are considered very exciting. Assay results have confirmed anomalous results of earlier airborne and ground geophysical survey. This work has resulted in the discovery of two new significant mineralized systems, Foxy and Eland in the Ruvuma project area (Figure 1).
Figure 1. Western Metals tenure in SW Tanzania showing location of major prospects.
Foxy Prospect - mineralisation at Foxy is related to a hematitic sandstone bed that outcrops around the edge of a low hill. Local GF spectrometer counts up to 20,000 cps were found in association with an abundant yellow secondary uranium mineral - uranophane
(CaUO2)2(SiO3OH)2.5H2O). A grab sample taken at the eastern edge of the anomaly returned an assay value of 13,400ppm U3O8. Outcropping uranium mineralisation was traced over an area of approximately 0.5km2. The sandstones appear to be correlates of the same sequence of
Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web:
www.westernmetals.com.au
ASX: WMT/WMTO
braided stream blanket sands that host the Mkuju River (Mantra Resources) and Mtonya prospects. This find requires further assessment including trenching and additional sampling with a view to defining drill targets.
Figure 2. Hand specimen of weathered sandstone from the Foxy prospect showing yellow secondary uranium mineral uranophane on joint planes and disseminated through matrix (field of view is 6cm).
Eland Prospect – mineralisation is associated with a banded biotite-quartz-feldspar leuco gneiss. The gneiss displays a strong airborne radiometric background that is uranium dominant.
Work by WMT geologists during this reconnaissance investigation located an area of anomalism of approximately 0.6km2 (125-250 cps) with hotspots up of up to 4,000 cps using the GF spectrometer. Grab samples collected from the area returned assay results of 1080 ppm U3O8,, 440ppm U3O8 and 141 ppm U3O8. SEM and EDAX analysis has confirmed the bulk of the uranium in the gneiss is associated with a uranium-rich pyrochlore (Na,Ca,U)2(Nb,Ta)2O6(OH,F). The pyrochlore is closely associated with biotite and zircon and averages 16wt% U.
The presence of uranium-rich pyrochlore in a single sample of fresh rock at the Eland prospect is a highly compelling find, worthy of more detailed geological evaluation and drilling.
The discovery of a new style of uranium mineralisation in basement rocks in SW Tanzania is considered very significant. The concept of this type of mineralisation opens up a number of possibilities and warrants the reassessment of a number of highly significant airborne radiometric anomalies that were previously downgraded and dismissed as being only due to anomalous basement.
Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web:
www.westernmetals.com.au
ASX: WMT/WMTO
Figure 3. Hand specimen of leuco gneiss from the newly discovered Eland prospect showing coarse brown crystals of uranium-rich pyrochlore (field of view 8cm).
DRILLING EXTENDS URANIUM MINERALISATION AT MTONYA PROJECT
Final assay results from the 40 hole 2,545 metre Phase 2 RC drilling programme completed during August 2007 were received and reported to the ASX on 26th November 2007.
Drilling during Phase 2 focused on further testing of the Henri, Para, Tahbilk and Moysten Prospects. Results of the Phase 2 drilling programme were considered very encouraging and further supported and extended the areas of uranium mineralisation defined during Phase 1 completed in June 2007. Broad spaced drilling has now partially tested the Para, Henri, Tahbilk and Moysten anomalies with the latest results continued to identify widespread sub-surface uranium mineralisation for all the prospects tested to date.
Drilling of a single traverse of wide spaced holes across the Moysten radiometric anomaly resulted in seven of the nine holes returning U3O8 values in excess of 100 ppm with three containing intervals greater than 300ppm U3O8.
Significant intercepts for this round of drilling include:
o
3 metres at 863 ppm U3O8 from 46 metres
o
3 metres at 750 ppm U3O8 from 47 metres
o
2 metres at 355 ppm U3O8 from 32 metres
o
1 metre at 960 ppm U3O8 from 10 metres
o
6 metres at 287 ppm U3O8 from 39 metres.
o
3 metres at 447 ppm U3O8 from 16 metres
o
6 metres at 178 ppm U3O8 from 37m.
Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web:
www.westernmetals.com.au
ASX: WMT/WMTO
Figure 4. RC Drilling at Moysten Prospect - Mtonya Project Area October 2007.
The majority of assay from the RC drilling programme completed during October 2007 have been received and were reported to the ASX on the 18th of January 2008. A small number of assays are still outstanding from the shoulders of gamma anomalies. Drilling focused on further evaluation of the prospects within the Mtonya Corridor. Seventeen holes were drilled at Moysten, 6 holes at Tahbilk, 10 holes at Henri and 3 holes at Para. A further 3 relatively deep stratigraphic holes were drilled to the east and west of the main Mtonya Corridor.
Results of this third phase of RC drilling were once again considered encouraging and again continued to support and further extend areas of known subsurface uranium mineralisation defined during phases 1 and 2 completed in June and August 2007 respectively.
Of particular significance is that there is some indication of a relatively deep, zone at Moysten that strikes north from hole MRC51 (3m at 750ppm U3O8 from 47m, through hole MRC44 (3m at 863ppm U3O8 from 44m) to hole MRC75 (4m at 737ppm U3O8 from 44m) at about 40m depth. Significant intercepts included:
o
4 metres at 737ppm U3O8 from 44 metres
o
1 metre at 1140 ppm U3O8 from 25 metres
o
2 metres at 970 ppm U3O8 from 20 metres
o
3 metres at 216 ppm U3O8 from 61 metres
In addition to this a new zone of anomalous mineralisation was intersected in regional stratigraphic drill hole MRC113 (3m at 216ppm U3O8), located midway between the Henri and Moysten prospects in an area of relatively low airborne radiometric anomalism. The implication
Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web:
www.westernmetals.com.au
ASX: WMT/WMTO
Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web:
www.westernmetals.com.au
ASX: WMT/WMTO
of this intersection is that uranium mineralisation is permissive in areas of low surface radiometric response at Mtonya.
Detailed mineralogical work carried out using in-house expertise provided important technical information that will be used to further refine the genetic model and to direct future exploration in the search for primary uranium mineralisation. The report concluded that surface secondary uranium mineralogy at Mtonya appears to be dominated by meta-uranocircite which is followed by autunite at depth. Holes deeper than 40m have been observed to carry very fine-grained, poorly-characterised uranium minerals which may be primary in origin. The grainsize of secondary autunite decreases with depth, and may reflect dissolution / re-precipitation cycles associated with wet/dry season water table depth variation.
Drilling to date has been of a broad spaced reconnaissance nature and designed to achieve enough data coverage for identification of high grade zones and controls on mineralisation. Drilling to depths have been limited to approximately 50 metres ensure maximum coverage in each campaign. There is still further potential below 50 metres depth for mineralisation.
Figure 5 (below) shows the drill collar locations for all of the drilling carried out in the area to date. The hole collars are thematically mapped on maximum down hole U3O8 and presented on the uranium channel radiometric image.
Collation and interpretation of data is ongoing. Detailed analysis of data is currently being undertaken with a view to understanding mode, distribution and genesis of uranium mineralisation and will ultimately be used to develop a predictive model that will assist in targeting economic uranium mineralisation.
Figure 5. Drill hole collar locations Mtonya Corridor end October 2007.
Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web:
www.westernmetals.com.au
ASX: WMT/WMTO
HIGH GRADE URANIUM RESULTS FROM TRENCHING AT ITS GRANDFATHER PROSPECT - MTONYA PROJECT
Assay results from five trenches excavated at the Grandfather Prospect during the August 2007 field programme to evaluate high surface scintillometer readings and anomalous surface grab samples (4.64% U3O8, 0.20% U3O8) were received and released to the ASX 26th November 2007. The trench locations ranged from Trench 23 (T23) in the north east to Trench 28 (T28), 1.4 kilometres to the south east along the strike of the Grandfather anomaly. Results are viewed as very encouraging.
The results show high grade uranium mineralisation in all trenches with T25 giving a peak interval of 1.2 metres at 7,723 ppm U3O8 including 0.4 metres at 2.13% U3O8; T27 giving intervals of 1.2 metres at 4,773ppm U3O8 and 1.2 metres at 2,393 ppm U3O8 and T 28 giving a peak interval of 1.2 metres at 746ppm U3O8. Visual uranium mineralisation was identified in several of the trenches.
Figure 6. Grandfather prospect Uranium minerals (green) under UV light.
AUSTRALIA – WEST GEORGETOWN
DETAILED STRUCTURAL / MAGNETIC INTERPRETATION AND CU – AU TARGETING ON NORTHERN BLOCK.
An external consultant completed a detailed structural / magnetic interpretation and targeting exercise on the Northern of the two West Georgetown Blocks. The interpretation is quite different in some aspects from the previous interpretations/solid geology maps and has resulted in the identification of a number of additional targets considered worthy of follow up. Figure 7 shows interpretation with structural / magnetic targets.
During the quarter progress was made in negotiations with Traditional Owners with respect to moving the Southern Tenement towards grant.
Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web:
www.westernmetals.com.au
ASX: WMT/WMTO
Figure 7. North West Georgetown block - structural / magnetic interpretation and potential Cu-Au targets.
CANADA - SNOWBIRD
ACQUIRED OPTION FOR 100% OF CANADIAN NICKEL / BASE METALS PROJECT
The project consists of claims comprising 261.3 km2 within the Snowbird Tectonic Zone, located 625 km NW of the city of Thompson (Figure 8). The Snowbird Tectonic Zone is on the margin of an ancient continent that hosts the Thompson, Raglan and Voisey’s Bay nickel deposits.
Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web:
www.westernmetals.com.au
ASX: WMT/WMTO
Figure 8 – Location of Snowbird Project in the Northwest Territories, Canada
Encouraging results from various exploration programs in the Snowbird area conducted by Phelps Dodge from the late 1950s through to 2000 were reviewed by BHP Billiton in 2005 and led to a helicopter supported reconnaissance geological mapping, geochemical sampling and a VTEM airborne electromagnetic survey of the Snowbird area.
Interpretation of the VTEM data resulted in the identification of a number of EM bedrock anomalies and confirmed the presence of elevated Cu-Ni sulphides in boulders (pictured below). These anomalies represent drill-ready targets, and will be explored by the highly experienced Western Metals team of nickel experts.
Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web:
www.westernmetals.com.au
ASX: WMT/WMTO
Surface sampling has been reported from previous work that yielded assay values up to 2.92% Cu and 2.29% Ni 1 from surface grab samples. Trench sampling was reported to include assays of 22.2% Zn, 4.7% Pb, 2.85 g/t Au and 976 g/t Ag 2.
Western Metals will have the right to purchase 100% interest in the Snowbird tenements by paying a non-refundable $US250,000 cash payment following a due diligence period (to end June 2008), drilling one hole to test anomaly KB-1, and paying a further cash payment of $US1,250,000 by 31 July 2009.
USA – GLADE
DRILLING AT GLADE URANIUM PROJECT IN COLORADO
Permitting was undertaken and approvals granted for RC drilling at the Glade project area located in Southern Colorado. Diversified Drilling was contracted to conduct the 4,000 to 6,000 metre drilling programme.
The drill programme has been designed to evaluate the northwest portion of the claim block for uranium mineralisation within the Salt Wash member of the Jurassic Morrison Formation. The Salt Wash member (which contains a number of historic uranium mines) is exposed in the sides
Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web:
www.westernmetals.com.au
ASX: WMT/WMTO
of the Dolores Rivers canyon some 800m west of the claim block. Favourable stratigraphy and conceptual targets relating to preferential paleo-channel development and supporting radon and multi-element geochemical data will be targeted during this round of drilling.
Drilling commenced at the Glade Uranium Project on Friday 16th November but was unfortunately suspended on Friday 7th of December due to unseasonal wet conditions compromising safety and productivity of the drilling operations. A total of 3 holes were drilled during this time.
The 3 holes were completed using RC drilling methods for a total of 2870 feet (875 metres).
A decision was made to postpone drilling operation on the 16th December until conditions improved.
PERU – LUKKACHA
DETAILED GEOLOGICAL MAPPING AND LITHOGEOCHEMICAL SAMPLING PROGRAMME
A detailed mapping program and litho-geochemical sampling programmes of the northern and southern alteration / geochemical anomalies was carried out in November 2007. Experienced Peruvian contractor GeoAndina were contracted to provide logistical support for the programs and to conduct detailed litho-geochemical sampling of the areas being mapped.
During November GeoAndina collected a total of 390 rock chip samples on a pre-determined 200m x 200m grid over the southern and northern alteration / geochemical anomalies. Data is currently being assessed.
EXPLORATION PROGRAMME FOR 2008
A fully funded comprehensive work programme has been proposed for Western Metals projects for 2008. A dualistic approach to exploration will be adopted. The 2008 programme will continue to build on the successes of the 2007 exploration effort, focusing on evaluation of existing targets but will also aim to generate new targets that will feed the project “pipeline” and will deliver drill targets for 2009.
TANZANIA
The Tanzanian team will be strengthened with the addition of a second senior geologist, dedicated field technicians, drivers and a logistics officer. Technical support will continue to be provided by Western Metals Perth Team.
RC drilling of prospects in the Mtonya Corridor will be aimed at continued evaluation of areas of known surface and subsurface uranium mineralisation discovered during 2006 and 2007. RC drilling will test the Moysten, Para, Rufus, Grandfather and Mad Fish prospects as well as evaluating strike continuity to the south west of Para and testing a number of conceptual targets. The drilling programme will also include a number of holes designed to provide stratigraphic information and further explore the concept of blind uranium mineralisation at depth in the Mtonya corridor.
Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web:
www.westernmetals.com.au
ASX: WMT/WMTO
Evaluation of properties and prosects outside the Mtonya Corridor with be accelerated and RC drilling will follow ground based geological mapping, ground geophysical and geochemical surveys at the Pedro, Foxy and Eland prospects.
Regional reconnaissance exploration of the Mtonya, Ruhuhu and Ruvuma project areas will continue. Work will include high resolution airborne radiometric surveys, helicopter and ground supported mapping, trenching, geochemical and geophysical surveys. It is expected that regional work will deliver new targets for drill testing in 2009.
WEST GEORGETOWN
Native title clearance, access and site preparation will be undertaken to prepare the ground for ground geophysical surveys of the 4 high priority gravity/magnetic targets on the Northern block (Fog Creek). These targets will then be evaluated by RC/DDH drilling.
A similar campaign of native title clearance, access and site preparation, ground geophysical surveys of the 6 highest priority targets on the Southern Block (Norman River) will be carried out once licences have been granted and title transferred. Targets will then be evaluated by RC/DDH drilling.
Work will be undertaken as soon as weather, permitting and heritage issues allow. Current indications are that it will be possible to access the ground after the wet season ends in May and be on site drilling in late May or early June 2008.
BUSINESS DEVELOPMENT
Western Metals is a company with growth aspirations to be a notable resource business. The path to this outcome will require a balance of world class exploration programs complimented with targeted corporate activities. This is a complex process requiring dedicated resources and capital – we have invested well in both and intend to utilise this unique position to our advantage.
To that end, we have a highly skilled and balanced team with a cross section of capabilities across the spectrum of competencies required to run a dynamic growth business. We have also built a portfolio of world class exploration assets in base metals, uranium and gold, all of which individually have the potential to substantially grow the business.
In 2007 we took the opportunity to raise $32m in capital which provides an opening balance for 2008 of $30m. This secure position means that we can manage the work programs on current assets in an aggressive but responsible manner for some time to come.
Whilst successful greenfields exploration will ultimately lead to the greatest multiples on investment, the Board is committed to complimenting this process through a program of acquisitions of advanced projects and, or, cash producing assets.
In support of these business development activities we have secured the ongoing support of Azure Capital to assist in the identification and evaluation of project and corporate opportunities. Azure has an industry leading team of corporate advisory specialists who have committed to assisting Western Metals through this important growth phase of our development.
Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web:
www.westernmetals.com.au
ASX: WMT/WMTO
Significant progress has been made during the quarter in identifying likely corporate and project opportunities. These investigations will progress through a rigorous but efficient assessment process in coming months.
CORPORATE
Western Metals held its Annual General Meeting on Friday, 23 November. Twelve Resolutions were put to the meeting and passed by the requisite majority of shareholders on a show of hands.
Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web:
www.westernmetals.com.au
ASX: WMT/WMTO
BACKGROUND TO WESTERN METALS
An explorer developing a portfolio of world class Uranium and Base Metals/Gold projects. We have immediate plans, and the capability, to underpin value and accelerate growth through acquisition.
STRATEGY
The corporate strategy is to underpin value and accelerate growth through:
•
Continued aggressive exploration of current world class projects through to resource
•
Addition of new greenfields exploration targets in high value commodities
•
Acquisition of substantial advanced development projects and / or cash producing assets.
COMPANY PROJECTS
•
An agreement with Uranium Resources plc including the Mtonya Project in Tanzania wherein Western Metals has a 40% interest with the ability to earn 60% by spending up to $4m. Western Metals also has a 42.5% interest in an additional 10,413 km2 of tenements in Tanzania bringing the license area to 13,851 km2 with a further 211 km2 under a 45% joint venture. June 2007 drilling results have identified sub surface uranium mineralisation including 7m @ 1,233ppm U3O8.
•
A uranium project joint venture with Lynx1 LLC from the United States. The JV holds exploration and mining rights over prospective lands in Colorado and will be undertaking exploration activities during 2007. Western Metals currently holds a 68% interest, with an ability to earn up to 85% by spending up to US$1.6 million.
•
A Joint Venture in Peru with a private Peruvian entity, to target a large tonnage Cu-Mo-Au porphyry deposit similar to other giant deposits in the region. Western Metals can own 100% through payments of US$2.5 million over a four year period.
•
An agreement with BHP Billiton to explore for base metals in the West Georgetown area in Northern Queensland. The agreement provides for Western Metals to achieve 100% ownership at the completion of an airborne geophysical survey whilst our JV partner has a claw back provision. The tenement area also hosts gold and uranium potential.
•
An option to purchase 100% interest in the Snowbird project in the Northwest Territories of Canada by paying a non-refundable US$250,000 cash payment following a due diligence period, drilling one exploration drill hole, and paying a further US$1,250,000 cash payment in 2009. BHP Billiton retains a 60% back-in right which, if declined, will leave WMT holding a 100% interest in the property, with BHP Billiton retaining a 2% NSR and off-take rights.
•
A 60% interest in the Queen Hill tin deposit in Zeehan, Tasmania in a JV with Gippsland Limited. Prime Corporate Finance has been appointed to manage the sale of this asset.