RM RESEARCH PTY LTD IS A CORPORATE AUTHORISED REPRESENTATIVE OF RM CAPITAL PTY LTD (AFSL 221938)
Maiden resource statement for Marenica Uranium Project 14th January 2008
Recommendation: SPECULATIVE BUY
GICS Industry: Materials
Capital Structure:
Share Price A$0.30
Fully paid ordinary Shares 269.1m
Listed Opt (ex 5c, exp 24/08/08) 51.4m
Unlisted Opt (ex15–18.8c, exp 11/07-11/099 5.6m
Market Capitalisation - undiluted A$80.7m
Approx Cash Position (31/12/07) A$1.5m
Share Price Year High-Low A$0.44 -0.145
Directors:
Non-Executive Chairman Rodger Johnston
Technical Director/CEO Leon Reisgys
Executive Director Terence Shanahan
Major Shareholders:
Shareholder Shares %
ANZ Nominees Limited 66.9m 24.9
Nefco Nominees Pty Ltd 22m 8.2
Malacca Capital Limited 15m 5.6
Accord Investment Corporation P/L 8.5m 3.2
Eurobond Trading Limited 7.7m 2.9
Share Price History:
INVESTMENT HIGHLIGHTS
West Australian Metals Ltd (“WA Metals” or “the Company”) has an 80%
interest in the prospective Marenica Uranium Project in Western Namibia;
The Company has announced an initial JORC-compliant Inferred Resource
containing 32Mt @ 213ppm U3O8 for 15m pounds of contained U3O8;
The reported resource areas occupy a very small portion (around 11 km2) of
the Marenica Palaeo-drainage system;
Broad spaced sampling suggests the presence of additional mineralisation
within the Resource area. WA Metals believes this area has the potential for
a further 8-12 million tonnes at an average grade of 140-180ppm U3O8 (2-5
million pounds U3O8);
Further potential to delineate additional uranium resources have been
outlined through down hole logging of old holes and reconnaissance RC
drilling within the Marenica Palaeo-channel. An area of elevated radon gas
defining a potential new mineralised palaeochannel measuring 10km in
apparent strike length has also been identified in the SE corner of the project;
The mineralisation defined to date is very similar to the nearby Trekkopje and
Langer Heinrich deposits. The Project is also prospective for “Rossing” style
mineralisation;
Notably, Areva has recently completed a US$2.5 billion friendly takeover bid
for UraMin Inc whose Trekkopje Project (located immediately south of
Marenica) contains a resource of 560Mt @ 135ppm U3O8. Mineralisation at
Trekkopje displays similarities to that found at Marenica;
Further drilling has commenced in and adjacent to the resource area with the
objective of adding further resources;
Political hurdles to production and export should be low as Namibia as a
leading member nation of the International Atomic Energy Agency and
currently an exporter of uranium products.
OUTLOOK
WA Metals continues to advance the Marenica Uranium Project with a multifaceted
exploration programme;
The Company has announced a maiden Inferred Resource within a small
area of the project – the grade of the Resource is comparable to other
economically viable Projects in Namibia;
WA Metals management believe that there is excellent potential to
substantially increase the Resource at the Marenica Project – both from
extensions within and adjacent to the current Resource as well as within
other areas along the extensive Marenica Palaeo-channel system;
The Company is trading at a modest A$7.80/pound of U3O8 (compared to a
market average for junior explores of A$9.50), however this does not reflect
the enormous exploration upside and recent takeover premium attached to
UraMin by Areva.
lots more to read on the website
- Forums
- ASX - By Stock
- WME
- rm research report
rm research report
-
- There are more pages in this discussion • 5 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add WME (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
LU7
LITHIUM UNIVERSE LIMITED
Alex Hanly, CEO
Alex Hanly
CEO
SPONSORED BY The Market Online