ASX / Quarterly Report
29 January 2009
DECEMBER 2008 QUARTERLY ACTIVITIES REPORT
Western Metals (ASX: WMT) is a diversified uranium and base metals resource company with $20.1m in the bank and no debt.
The Company is well funded and well resourced and is focussed on acquiring an advanced gold or base metals project. The primary geographical focus for this project is Africa and Australia.
During the quarter, the Company’s exploration activities focussed on Tanzania where regional reconnaissance investigations continued to centre on generative work and on the follow up of existing prospects and anomalies.
In conjunction with this, a detailed technical review has been conducted on its uranium properties in Tanzania. This will include the finalisation of the work plan for 2009.
In line with its strategy of consolidation and focus Western Metals has completed its withdrawal from the Lukkacha Project in Peru and has made significant progress with respect to the exit of its interest in the Glade Uranium Project in Colorado, USA.
For further information contact:
George Bauk Paul Downie
Managing Director FD Third Person
Western Metals Limited (08) 9386 1233
(08) 6380 3600 0414 947 129
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
UPDATE ON ACTIVITIES DECEMBER QUARTER 2008
Western Metals is pleased to provide an update on activities undertaken during the December quarter 2008. Progress has been made on the majority of projects with details on each project found on the WMT website (www.westernmetals.com.au) and in the relevant announcements made to the ASX.
TANZANIA - SW TANZANIA: URANIUM
Mtonya Corridor Prospects
As reported in the September 2008 Quarterly Report a total of 152 RC holes were drilled for an aggregate of 9,288m into prospects along the Mtonya Corridor during 2008. All the assay results from this drilling have now been received. Previously unreported significant anomalous intercepts from the drilling are included in the Table 1 below.
Table 1: Previously unreported significant assay results
Hole Id
Easting
Northing
Depth from metres
Interval metres
U3O8 ppm
MRC260
229023
8831897
24
2
125
MRC261
228967
8832033
31
1
180
MRC261
228967
8832033
40
1
180
MRC264
228907
8831822
30
1
130
Notes on Table: All drilling vertical. Samples have been collected by riffle splitting dry intervals and representative tube sampling of wet intervals. Samples have been analysed by ICP using laboratory method ME-ICP61s by ALS Chemex laboratory Perth Australia. Certified reference standards and blanks have been included by Western Metals in addition to laboratory control standards. All results are in U3O8 ppm with analysis method accuracy quoted at 10 ppm U3O8. Co-ordinates are WGS84 and have been measured by hand held GPS. All intersection lengths are estimated to be true width of mineralisation based on local geological observation.
Foxy Prospect
As reported in the September Quarterly a total of 19 RC holes were drilled for a total of 1,382m into the Foxy Prospect during 2008. While including a number of anomalous intercepts, the drilling at Foxy did not, in general meet expectations. Holes intersected shallow, low-moderate grade uranium mineralisation with the best results from hole FRC014 which returned 6m at 213ppm U3O8 from 27m.
Anomalous intercepts are included in Table 2 below
Hole Id
Easting
Northing
Depth from Metres
Interval metres
U3O8 ppm
FRC002
261819
8785966
44
1
170
FRC006
261803
8785873
0
1
110
FRC006
261803
8785873
3
1
110
FRC006
261803
8785873
134
1
170
FRC007
261770
8785905
23
1
170
FRC008
261730
8785933
29
1
110
FRC010
261523
8785871
11
1
120
FRC010
261523
8785871
29
1
210
FRC012
261481
8785898
5
1
110
FRC013
261402
8785850
5
1
170
FRC014
261362
8785791
27
6
213
FRC016
261443
8785828
13
1
230
FRC016
261443
8785828
34
1
200
FRC017
261481
8785794
42
2
235
Notes on Table: All drilling vertical. Samples have been collected by riffle splitting dry intervals and representative tube sampling of wet intervals. Samples have been analysed by ICP using laboratory method ME-ICP61s by ALS Chemex laboratory Perth Australia. Certified reference standards and blanks have been included by Western Metals in addition to laboratory control standards. All results are in U3O8 ppm with analysis method accuracy quoted at 10 ppm U3O8. Co-ordinates are WGS84 and have been measured by hand held GPS. All intersection lengths are estimated to be true width of mineralisation based on local geological observation.
Technical Review
The Mtonya Prospect has been the focus of exploration through 2007-2008 with the drilling of 265 holes for an aggregate of 16,271 metres. In addition to this a total of 19 holes for an aggregate of 1,382 metres have been drilled at the Foxy Prospect.
Mineralisation at the Mtonya and Foxy Prospects (sandstone hosted, redox controlled) has been found to be located within a sand-dominated, fluvially derived sequence of very coarse sands to silts. Locally, mineralisation is controlled at the redox front boundaries between pale green coloured sands (reduced) and red, brown or off-white coloured sands (oxidized). Uranium mineralisation predominantly in the form of secondary uranium minerals such as meta-uranocircite and autonite, although primary minerals have tentatively been identified as coffinite or pitchblende and possibly uranium polymerized organics ‘thucolite’. The mineralisation at the Mtonya Prospect itself is confined within a 4.5km wide, NE trending corridor (the Mtonya Trend). The length of the prospective corridor as defined by airborne and surface radiometrics is approximately 7km.
Drilling results have shown that uranium mineralisation is hosted within flat lying lenses, is widespread and in places is of economic grade and thicknesses. The best zones of mineralisation drilled to date are located at the Henri and Grandfather Prospects, where at least three mineralised levels have been identified between 760mRL and 810mRL.
While current drilling has not yet defined a mineral resource at the Mtonya or Foxy prospects there are still a large number of anomalies and prospects that remain to be tested. In addition to these a number of conceptual targets have been generated and remain to be evaluated.
It is also still believed that there is potential to find new mineralisation to the south-west of the Mtonya Trend under cover of unmineralised sediments of similar age and composition. This view is supported by a re-emergence of surface mineralisation some 25km further south along trend at Madfish.
A number of other sandstone hosted anomalies have been defined and are currently the subject of investigation including Pedro and Carlos in the Ruhuhu Project area.
Uranium associated with nepheline syenite gneiss was discovered at Eland in the southernmost part of the Njuga Tenement Ruvuma Project area. The mineralisation is associated with pyrochlore and appears to be contained wholly within the syenite intrusion and may have a secondary control within the metamorphic banding. The prospect has potential to be a large tonnage, moderate to low grade deposit with niobium and tantalum credits.
AUSTRALIA - WEST GEORGETOWN: SILVER-ZINC-LEAD-COPPER-GOLD
The West Georgetown project comprises the northern Fog Creek Tenement and the southern Norman River Tenement. Under the Company’s agreement with BHP Billiton, the top seven targets for priority drill testing have been identified on the southern Norman River tenement. During the quarter community and stakeholder consultations have been undertaken and site specific heritage surveys completed on the three western FalconTM targets on the southern Norman River Tenement.
CANADA - SNOWBIRD: NICKEL-BASE METALS-GOLD
During the quarter work has focused on logistical and permitting issues associated with drilling in the North West Territories, Canada. An application for a Land Use Permit has been made to the McKenzie Land and Water Board and negotiations have begun with stakeholders including First Nation Groups.
UNITED STATES OF AMERICA - MID CONTINENT: NICKEL
No field work was conducted during the quarter.
DIVESTMENTS
Western Metals’ withdrawal from the Lukkacha Project in Peru is complete.
Work on the withdrawal of Western Metals’ interest in the Glade Uranium Project in Colorado, USA has progressed but has not yet been finalised.
PROPOSED MARCH ‘09 QUARTER PROGRAMME
During the March quarter, the focus of work will be:
a)
to conduct a detailed and critical review of all current projects in lights of recent exploration results and in the context of the current economic climate; and
b)
continued project generation and business development activities aimed at acquiring an advanced base metals or gold project.
CORPORATE
During the December Quarter, a number of key changes have occurred within the organisation.
•
Chris Greig (Non-Executive Chairman) and Marc Cardaci (Non Executive Director) have stepped down from the board effective from the AGM, held on the 28th November 2008.
•
Effective 30 January 2009, Peter Smith will step down as an Executive Director of the Company and take up the position of Non-Executive Director.
The Board Composition from the 30th January 2009 will be:
George Bauk Managing Director
Geoff Chapman Technical Director
Peter Smith Non Executive Director
Morgan Ball Company Secretary / CFO
The AGM was held on the 28th November 2008 at which time all resolutions were passed on a show of hands.
Western Metals has a cash position of $20.1m with no debt.
Western Metals also holds 5.56m shares (7.14%) of Stellar Resources shares valued at $0.36m. These shares were acquired through the divestment of the Zeehan Tin Project in Tasmania, Australia.
BACKGROUND TO WESTERN METALS
An emerging resource company developing a portfolio of world class Uranium and Base Metals Projects. The company has immediate plans, and the capability, to underpin value and accelerate growth through acquisition and exploration success.
COMPANY PROJECTS
URANIUM
A joint venture with Uranium Resources plc to explore in Tanzania. Western Metals has a 60% interest in the Mtonya JV, a 42.5% interest in an additional 10,413 km2 of tenements and a further 211 km2 under a 45% JV. The total licence area under Western Metals’ management is 14,062 km2.
BASE METALS
An agreement with BHP Billiton Limited (“BHPB”) to explore for base metals in the West Georgetown region of northern Queensland. The agreement provides for Western Metals to achieve 100% ownership with BHPB retaining a claw back provision over the southern tenement (EL14722).
An option to purchase 100% interest in the Snowbird Nickel-Base Metals project in the Northwest Territories of Canada by drilling one exploration drill hole and making a US$1,250,000 cash payment before 31 December 2009. BHP Billiton Limited retains a 60% back-in right.
WMT has purchased from BHP Billiton Limited a 100% interest in all exploration data relating to the Mid-Continent Nickel project in Minnesota including all regional geophysical, drill hole and analytical data.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled and/or assessed by Glen Edwards who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Edwards is employed by Western Metals Ltd. Mr. Edwards 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 ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Edwards consents to the inclusion in the report of the matters based on his assessment of the available information in the form and context in which it appears.
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
WMT
western metals limited
