part 2
Junior explorer fast-tracks revival - part two
Tuesday, 26 June 2007
"With Queen Hill, we are committed to modernising all the old Aberfoyle data from 1982 to 1985," Bauk said.
"We are going to complete the desktop economics in the coming months and then develop a strategy around that study."
The vision of the reborn Western Metals goes beyond Tanzania and Tasmania to the expansion of the company through a strategy that includes the acquisition of high value and quality prospects covering the resources spectrum from greenfield exploration to advanced development projects.
In January, the company signed an agreement with BHP Billiton for the West Georgetown silver/lead/zinc project in Queensland, a project that also has gold and uranium potential.
A Falcon airborne geophysical survey, funded by Western Metals, was completed by BHP Billiton's Orion Operations Group, which is interpreting the data and will produce the initial targeting. Western Metals will take 100% ownership of the tenements on payment and successful processing and interpretation of the survey results.
"It's in a fantastic area that is believed to be an excellent Broken Hill-style silver/lead/zinc target," Bauk said.
"We see some interesting gold and uranium prospects in the region which have also attracted a number of other companies in the area looking for those commodities."
Western Metals has also entered into a joint venture agreement with US group Lynx1 LLC to pursue uranium prospects on the Glade Project in Colorado in the United States, where 425 claims have been staked.
The company is currently organising drilling permits and is starting a ground-based mapping and sampling program in April.
Mapping and sampling is also planned for the company's recently acquired Lukkacha porphyry copper project in the highly productive Copper Belt of Peru, where it is finalising the process of due diligence.
After a recent successful capital raising, Western Metals has the funds available to conduct an aggressive Tanzanian drill program and to accelerate all of its exciting portfolio of exploration projects.
"The capital raising was a significant step forward for Western Metals as we continue the implementation of an aggressive exploration program," Bauk said.
"The $25 million capital raising demonstrates the market's confidence in our people, our projects and our business plan.
"Tricom Securities, the same company that put the $3.3 million together in December last year at 9c, were the broker behind the deal. For them to come back at 24c is a show of confidence in the fact that we definitely have something here on the upside of things.
"A fundamental aspect of any company that underpins projects and funds is the people. We have recently added some key individuals to our team. We are pleased to have secured the services of Mr Glen Edwards, a highly experienced international explorationist, as exploration manager, while Dr Ben Grguric has joined our team to add a new level of technical excellence as principal geologist. Mr Livinus Komba has been appointed as Tanzanian country manager in Dar es Salaam.
"Mr Komba was previously with Barrick, Resolute and the Tanzanian Government in various senior roles. He now has the immediate responsibility of establishing our Tanzanian office that will consist of four to five people, including local geologists, who will drive exploration programs for 2007 and beyond. With our global exposure and level of activity we have also added Mr Morgan Ball as our chief financial officer."
Western Metals' near-death experience has given it a new lease on life and an optimistic view of its prospects for success and longevity. With a clear strategy the company has acquired excellent assets and put in place the people, funds and plans to develop them. This puts the company in a fantastic position to be a serious player with an exciting future.
* This report, first published in the May 2007 edition of RESOURCESTOCKS magazine, was commissioned by Western Metals
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WMT
western metals limited
