...As evident on the daily chart, West Australian Metals has posted further gains over the past week, trading as high as 24.5 cents. With prices having doubled in just a short space of time, we now anticipate a period of consolidation as some participants take profits. We would expect previous resistance at 18.5 cents to provide support if retested. From a broader perspective, the significant increase in daily trading volumes since April suggests growing investor support for the stock. In our opinion, the gains during the first half of half of 2009 signal the beginning of a more sustained upward trend, which will unfold over the coming months....
...The company’s Marenica project is by no means there yet, but the indications are encouraging. So far the company has identified a large, bulk-tonnage uranium deposit that hosts a JORC-compliant Inferred Resource of 111 million tonnes averaging 140ppm U3O8 for 34 million pounds of contained U3O8. From the data that we have reviewed we have every confidence in the company’s capacity to generate an interim resource target of around 100 million pounds of contained U3O8 grading ~400ppm. The company has recently completed a preliminary drilling program primarily for geotechnical, mineralogical and metallurgical test-work to be incorporated into a Scoping Study, which is planned for completion in the second half of 2009. The key here will be the continued discovery of wider, higher-grade zones targeting deeper ‘hard-rock’ uranium mineralization in addition to the existing near-surface sedimentary resource. This is where the real excitement and upside will lie...
Especially the confirmation for a potential of 100 Mlbs at 400 ppm is a stunning fact ! So I think the path for the shareprice is a climb upwards.
WME Price at posting:
24.5¢ Sentiment: ST Buy Disclosure: Held
