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re: ann is here Western Metals Limited
ABN 69 009 150 618
31 Malcolm Street West Perth WA 6005 PO Box 7485 Cloisters Square WA 6850
Tel: +61 8 9481 3003 Fax: +61 8 9481 3015 Em: [email protected]
Web: www.westernmetals.com.au
ASX: WMT
ASX Announcement
28 November 2006
WESTERN METALS RAISES $3.28M TO PROGRESS EXPLORATION PROSPECTS
Western Metals today announced the successful placement of 36.5 million shares at 9.0c per share together with 13.5 million unlisted options exercisable at 15c expiring within 2 years of the date of issue with Tricom Securities raising $3.28 million, giving the company cash reserves exceeding $5.5 million. The funds raised are to primarily progress the company’s exploration plans for its portfolio of highly prospective assets including the Mtonya uranium project in southern Tanzania.
“These funds will enable Western Metals to aggressively pursue the targets identified by our recent very successful exploration program at Mtonya,” Western Metals Managing Director George Bauk said.
The company has recently announced the results of this program which are highly encouraging and provide Western Metals’ exploration team with walk up drill targets.
Western Metals is optimistic that more targets will be found and the company has a field crew on the ground at the moment extending the data set on this area. This field work will cover approximately 50 km2 of the total 2,500 km2 in the Mtonya project area.
“Western Metals is keen to move quickly and capitalise on the work already completed to date. Our current program includes:
• Extending the detailed ground radiometric evaluation of the Henri anomaly area at Mtonya
• Conducting ground radiometric surveys over potential strike extensions particularly to the northeast
• Conducting further trenching and sampling of radiometric anomalies
• Evaluating access for drilling equipment for a program to be conducted in Q2 2007,” Mr Bauk added.
A detailed low level airborne radiometric survey to assist locating further anomalous zones in the project area will be conducted in 2007.
Western Metals has also recently announced acquisition, pending final notification of grant, of additional uranium exploration tenements in Tanzania. The new tenements build Western Metals’ strong position as one of the largest exploration land holders in the Karoo Basin in southern Tanzania. The Karoo Basin hosts known uranium deposits throughout southern Africa including Paladin Resources’ Kayelekera deposit located 250 km to the west of the joint venture area.
In addition to the company’s African interests Western Metals has recently entered into a joint venture agreement with USA group Lynx1 LLC to pursue uranium prospects.
The joint venture will focus on the USA, a country that has a strong history of successful uranium exploration and mining. The Joint Venture intends to secure exclusive exploration access to prospective areas.
ENDS
For further information
George Bauk
Managing Director
Western Metals
08 9481 3003
Willie Rowe
Gryphon Management Australia
0417 931 254
BACKGROUND TO WESTERN METALS
Western Metals is a Perth based exploration company with interests in Australia, Tanzania and USA.
The company has a farm-in agreement with London based Uranium Resources plc (AIM: URA) for the Mtonya, Ruhuhu and Makutapora projects in Tanzania. Under the farm-in agreement Western Metals will earn 40% after spending $2m and can earn 60% by spending a total of $4m.
Exploration results from Tanzania announced on 21 November indicate strong uranium mineralisation in trenches with uranium assay results range from 17 ppm to 7,232ppm with a maximum selective sample of 55,600 ppm. These trenches follow up five radiometric anomalies along a 7 km zone of regional uranium anomalism.
Western Metals has a 42.5% interest and project management of an additional 3,744 of tenements in Tanzania consolidating WML’s existing land position bringing the total area under license to 7,640 km2.
Western Metals have also entered into a USA Uranium Joint Venture with USA group Lynx1 LLC. The joint venture is currently in the process of targeting and acquiring exploration and mining rights over prospective lands.
Western Metals also currently has a 60% interest the Queen Hill tin deposit in Zeehan, Tasmania in joint venture with Gippsland Limited (ASX:GIP).
Western Metals continues to review global opportunities for grassroots to advanced exploration opportunities in base metals, gold and uranium.