WMT western metals limited

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    The Board of Western Metals is pleased to provide an update on uranium exploration activities in
    Tanzania
    Drilling Commences
    Following the end of the wet season and construction of 12 kilometres of drill access tracks,
    reverse circulation (RC) drilling has commenced on the Mtonya project in southern Tanzania. A
    total of 4,000 metres of drilling is planned for June on several areas of uranium anomalism
    including the Henri prospect which has yielded high uranium grades from surface trenching.
    Results from the assay of the drilling samples are expected to be received in early August
    dependent on transportation of samples and laboratory schedules.
    Helicopter Radiometric Survey Completed
    A high resolution helicopter radiometric survey has been completed over the most prospective
    areas of the Mtonya project. The survey comprised 5,150 line kilometres of data collection on 250
    metre spaced flight lines.
    Preliminary interpretation of raw data is considered encouraging with identification of more than
    15 anomalies of interest that warrant further detailed exploration. Field parties will commence
    accessing the anomalies from June onward to conduct geological data collection and sampling.
    Helicopter Supported Reconnaissance Completed
    A field party was deployed via helicopter during April and May to conduct preliminary
    reconnaissance on anomalies identified from historic broad spaced airborne radiometric surveys.
    The work involved ground checking of selected anomalies, ground radiometric surveys, geological
    observation and sampling.
    The results of the reconnaissance are considered encouraging. Several anomalous areas
    identified will require further detailed exploration during the second half of 2007 including drilling
    and detailed airborne radiometric surveys. Assay results of samples and details of sites visited will
    be released when the assays are received.
    Prospecting Licences Granted
    Two Prospecting Licences, previously announced as applications, have been granted as
    PLR4432/2007 and PLR4476/2007. These two licences cover 6,498 square kilometres in
    southern Tanzania mostly over areas of uranium prospective Karoo Basin.
    Preliminary reconnaissance work will be conducted on these areas during the remainder of 2007.

    Diagram 1: Southern Tanzania Exploration Areas
    General
    Western Metals is entering a very exciting phase of exploration in Tanzania.
    The Tanzanian office has been established with the Country Manager, Senior Exploration
    Geologist, two Junior Geologists, Field Supervisor and Administration Manager in place. The
    Tanzanian team will be supported by the Australian based geology team.
    Exploration equipment has been purchased including downhole geophysical survey tools, surface
    geophysical survey instruments and safety and communications equipment. The company has
    developed and is implementing operating procedures to ensure work practices are conducted with
    the highest regard for safety and environmental management.
    Western Metals is now positioned to progress its exploration activities aggressively over the
    remainder of 2007 and beyond.
    George Bauk


    BACKGROUND TO WESTERN METALS
    Western Metals is a Perth based exploration company with interests in Australia, Tanzania, the
    USA and Peru.
    STRATEGY
    The corporate strategy comprises a focus on generating a portfolio of high-quality, high value
    assets supported by a base of people, knowledge and networks. Projects in the Western Metals
    portfolio are selected for their prospectivity, low sovereign risk and high value commodity
    exposure.
    PROJECTS
    • The company has an agreement with Uranium Resources plc including the Mtonya Project
    in Tanzania wherein Western Metals can earn 60% by spending $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. Exploration
    results indicate strong uranium mineralisation at surface up to 6.6% U3O8 at the Henri
    anomaly to be tested by drilling in June 2007.
    • Western Metals has a USA uranium JV with USA group Lynx1 LLC. 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 52% interest, with an
    ability to earn up to 80% by spending USD$1.4 million.
    • The company has entered into a JV in Peru with SMRL Rustica Claudia 5, 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 USD$2.5 million
    over a four year period.
    • Western Metals has 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 the FalconTM survey whilst BHP Billiton has a
    claw back provision. The tenement area also hosts gold and uranium potential.
    • Also in the portfolio is a 60% interest in the Queen Hill tin deposit in Zeehan, Tasmania in a
    JV with Gippsland Limited. This includes a resource of 7.3 Mt at 0.69% Sn.
    GROWTH
    Western Metals continues to review global opportunities for grassroots to advanced exploration
    opportunities in base metals, gold and uranium. Since the current management team was put in
    place in June 2006 this has yielded four new projects in the US, Peru, Australia and Tanzania
    which are now fundamental to the company’s aggressive exploration strategy.
    Managing Director
    Western Metals
    08 9481 3003
    Willie Rowe
    Gryphon Management Australia
    0417 931 254
 
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