ASX / Media Release
23 July 2008
WESTERN METALS CONTINUES TO DRILL HIGH GRADE URANIUM MINERALISATION IN TANZANIA
Western Metals Limited (ASX:WMT) is pleased to announce that RC drilling along the Mtonya Corridor in Southern Tanzania continues to return significant high grade uranium mineralisation. Results from the first 4 holes drilled into the Grandfather Prospect have returned substantial intersections. WMT continues to deliver on its stated exploration objectives and is completing its work programmes both on budget and on schedule.
As of 14th July a total of 74 RC holes for 4,516m had been completed during the 2008 drilling programme into numerous prospects along the Mtonya Corridor. Infill and extension drilling at known prospects such as Moysten and Henri have confirmed tenor and also extended mineralisation. Assay results of the first batch of samples from drilling completed at the Grandfather Prospect, located some 5 kilometres northeast of the Henri prospect, returned a number of significant intersections. Significant intercepts from results received to date 2008 RC drilling include:
•
MRC143 - 12 metres at 676 ppm U3O8 from 22 metres
•
MRC143 - 3 metres at 690 ppm U3O8 from 12 metres
•
MRC139 - 2 metres at 1,525 ppm U3O8 from 11 metres
•
MRC116 - 7 metres at 263 ppm U3O8 from 44 metres
•
MRC136 - 5 metres at 222 ppm U3O8 from 18 metres
•
MRC127 - 3 metres at 250 ppm U3O8 from 4 metres
Results from the high resolution airborne radiometric surveys flown in June have been received and processed. Interpretation of data has resulted in further definition of existing anomalies and identification of a number of new anomalies considered worthy of follow up.
RC drilling, ground based geological, geophysical and geochemical surveys continue. Drilling will evaluate prospects along the Mtonya Corridor but will also provide a preliminary assessment of prospects such as Foxy and Pedro in the Ruvuma and Ruhuhu project areas.
For further information, please see below or contact:
George Bauk
Managing Director
Western Metals
(08) 6380 3600
Paul Downie
Porter Novelli (Perth)
(08) 9386 1233
0414 947 129
TANZANIA – Uranium
The current RC drilling programme has been designed to continue to evaluate the Mtonya Corridor and then to move onto to evaluation of the regional prospects in the Ruhuhu and Ruvuma Project areas. Western Metals tenure and major prospects are shown below with simplified Karoo geology in Figure 1.
Figure 1: Western Metals tenure in SW Tanzania showing location of major prospects.
Mtonya Project Area
The focus of the current phase of exploration during 2008 has and will continue to be RC drilling evaluation of prospects along the Mtonya Corridor and in particular the Grandfather, Rufus, Henri, Para Extended and Mad Fish prospects.
RC drilling has initially been aimed at evaluating the Grandfather prospect where previous trenching of airborne ground radiometric surveys and surface grab sampling (4.64% U3O8, 0.02% U3O8) returned significant results from a series of 5 trenches excavated over a strike of 1.4 kilometres. Visual uranium mineralisation was identified in several trenches with:
•
T25 giving a peak interval of 1.2 metres at 7,723ppm U3O8, including 0.4 metres at 2.13% U3O8;
•
T27 giving a peak interval of 1.2 metres 4,773 ppm U3O8 and 1.2 metres at 2,393ppm U3O8; and
•
T28 giving a peak interval of 1.2 metres at 746ppm U3O8.
Figure 2: Secondary uranium mineralisation from sample taken from the T25 trench at Grandfather.
As of 14th July a total of 74 RC holes for 4,516m had been completed during the 2008 drilling program into numerous prospects along the Mtonya Corridor. Infill and extension drilling at known prospects such as Moysten and Henri have confirmed tenor and extended mineralisation. Assay results of the first batch of samples from drilling completed at the Grandfather Prospect, located some 5 kilometres northeast of the Henri prospect, returned a number of significant intersections. Significant intercepts from results received to date 2008 RC drilling include:
•
MRC143 - 12 metres at 676 ppm U3O8 from 22 metres
•
MRC143 – 3 metres at 690 ppm U3O8 from 12 metres
•
MRC139 - 2 metres at 1,525 ppm U3O8 from 11 metres
•
MRC116 - 7 metres at 263 ppm U3O8 from 44 metres
•
MRC136 - 5 metres at 222 ppm U3O8 from 18 metres
•
MRC127 - 3 metres at 250 ppm U3O8 from 4 metres
•
MRC138 - 2 metres at 300 ppm U3O8 from 22 metres
Results are presented in Table 1 below. Only a small proportion of assay results from drilling carried out to date have been received. Drill status as of 14th July is shown in Figure 3 – holes have been thematically mapped on maximum downhole U3O8 and presented on a uranium channel radiometric image. White points represent drilled holes for which assays are pending.
Figure 3: Mtonya Corridor drilling status map as at 14th July 2008.
Future Program
An aggressive and ambitious work programme supported by a substantial exploration budget has been planned for SW Tanzanian uranium exploration for 2008. The budget for the second half of 2008 is in the order of AUD$2 million.
The Tanzanian team has been 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 based team.
Further 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 continue to 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.
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 and Eland prospects.
Regional reconnaissance exploration of the Mtonya, Ruhuhu and Ruvuma project areas will continue. Work has involved a high resolution airborne radiometric survey and will include, 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.
Figure 4: RC Drilling at Grandfather Prospect July 2008.
Table 1: Drill Results Significant Intersections >100ppm U3O8
HOLE ID
Prospect
Northing
(metres)
Easting
(metres)
FROM
(metres)
WIDTH
(metres)
Intersection U3O8 ppm
MRC116
Moysten
230392
8835932
44
7
263
MRC126
Henri
230370
8833794
26
1
110
MRC127
Henri
228940
8832660
4
3
250
MRC127
Henri
228940
8832660
18
1
130
MRC127
Henri
228940
8832660
23
1
480
MRC129
Henri
228995
8832432
50
1
140
MRC129
Henri
228995
8832432
57
1
110
MRC129
Henri
228995
8832432
72
2
205
MRC135
Para
228948
8831603
7
8
128
MRC135
Para
228948
8831603
41
4
123
MRC136
Grandfather
231907
8837464
11
3
250
MRC136
Grandfather
231907
8837464
18
5
222
MRC138
Grandfather
232037
8837456
22
2
300
MRC139
Grandfather
232114
8837502
11
2
1525
MRC139
Grandfather
232114
8837502
16
1
130
MRC139
Grandfather
232114
8837502
27
1
770
MRC143
Grandfather
231826
8837410
12
3
690
MRC143
Grandfather
231826
8837410
22
12
676
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. Samples greater that 10,000 ppm U3O8 have been analysed by XRF using method ME-XRF10s. 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 UTM Zone 36S, 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.
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 Project, a 42.5% interest in an additional 10,413 km2 of tenements and a further 211 km2 under a 45% joint venture. The total licence area under Western Metals’ management is 14,062 km2.
A joint venture with Lynx1 LLC of the United States. The JV holds exploration and mining rights over prospective land in Colorado. Western Metals currently holds a 68% interest, with an ability to earn up to 85% by spending US$1.65 million.
BASE METALS
An option to acquire 100% of the advanced Parys Mountain copper-zinc project on the island of Anglesey in North Wales from Anglesey Mining plc (LSE:AYM), a UK based mining company listed on the London Stock Exchange (http://www.angleseymining.co.uk ). The project is currently in a final due diligence stage. On signing of a formal sale agreement, Western Metals will commence a feasibility study at a estimated cost of A$12 - $15m.
An agreement with BHP Billiton to explore for base metals in the West Georgetown region of northern Queensland. Western Metals has 100% ownership with BHPB retaining a claw back provision over one of the tenements (EL14722).
An option to purchase 100% interest in the Snowbird Nickel Project in the Northwest Territories of Canada by paying a non-refundable US$250,000 cash payment following a due diligence period before 31 July 2008, drilling one exploration drill hole, and paying a further US$1,250,000 cash payment before 31 July 2009. BHP Billiton retains a 60% back-in right.
WMT has purchased from BHP Billiton a 100% interest in all exploration data relating to the Mid-Continent Nickel Project in Minnesota including all regional geophysical data, drill hole and analytical data.
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 earn up to 100% through payments of US$2.5 million over a four year period.
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.
WMT
western metals limited
