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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