ASX / Announcement22 May 2008WESTERN METALS RECOMMENCES RC...

ASX / Announcement
22 May 2008
WESTERN METALS RECOMMENCES RC DRILLING AT ITS URANIUM PROJECTS IN SOUTHERN TANZANIA

Western Metals (ASX:WMT) is please to announce that RC drilling has re-commenced at its Uranium Projects in Southern Tanzania. We are also please to announce the commencement of a high-resolution airborne radiometric survey over parts of the Ruvuma Project area.
An aggressive regional and prospect specific exploration effort consisting of airborne and ground geophysics, geological mapping, geochemical sampling, costeaning and RC drilling is planned for 2008. The 2008 programme will continue to build on the successes of the 2007 exploration effort, focusing on evaluation of existing targets and will also aim to generate new targets that will feed the project “pipeline” and will deliver drill targets for 2009. The diagram below shows Western Metals’ tenure over interpreted Karoo age rocks in Southern Tanzania with the location of major prospects are also shown.
Mtonya Project Area - The focus of exploration during 2008 will be RC evaluation of prospects along the Mtonya corridor and in particular the Grandfather, Rufus, Para extensions and Mad Fish. Initial estimates are for approximately 8,500metres of RC drilling.
RC drilling will initially be aimed at evaluating the Grandfather prospect where previous trenching of airborne ground radiometric surveys and surface grab sampling (4.64% U3O8, 0.02% U3O8) returned significant results from a series of 5 trenches excavated over a strike of 1.4 kilometres. Visual uranium mineralisation was identified in several trenches with:
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T25 giving a peak interval of 1.2 metres at 7,723ppm U3O8, including 0.4 metres at 2.13% U3O8;
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T27 giving a peak interval of 4,773 ppm U3O8 and 1.2 metres at 2,393ppm U3O8; and
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T28 giving a peak interval of 1.2 metres at 746ppm U3O8.
RC Drilling will also continue to extend, infill and test areas of known Uranium mineralisation at the Henri, Para, Rufus and Moysten Prospects.
Ruhuhu Project Area – The focus of exploration during 2008 will be evaluation of regional potential and RC drilling of existing prospects in particular the Pedro and Ngaka anomalies. This will include 1,000metres of RC drilling to drill test the Pedro and Ngaka anomalies. Work will include helicopter supported reconnaissance, geological mapping, costeaning, ground geochemical, geophysical surveys, RC drilling and rehabilitation.
Ruvumu Project Area – The focus of exploration during 2008 will be regional reconnaissance with a view to defining targets for follow-up in 2009 as well as a ground geophysical work, sampling and RC drilling campaigns to evaluate the recently defined Foxy and Eland prospects. This will include 3,000metres of drilling. Work will include a helicopter supported reconnaissance, an airborne radiometric survey, geological mapping, costeaning, ground geochemical, geophysical surveys, RC drilling and rehabilitation.
For further information contact:
George Bauk Paul Downie
Managing Director Porter Novelli (Perth)
Western Metals Limited (08) 9386 1233
(08) 6380 3600 0414 947 129
Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web: www.westernmetals.com.au
ASX: WMT/WMTO
Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web: www.westernmetals.com.au
ASX: WMT/WMTO
BACKGROUND TO WESTERN METALS
An emerging resource company developing a portfolio of world class Uranium and Base Metals Projects. The company has immediate plans, and the capability, to underpin value and accelerate growth through acquisition and exploration success.
COMPANY PROJECTS
URANIUM
An agreement with Uranium Resources plc including the Mtonya Project in Tanzania wherein Western Metals has a 40% interest with the ability to earn 60% by spending up to $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.
A uranium Project joint venture with Lynx1 LLC from the United States. The JV holds exploration and mining rights over prospective lands in Colorado and is currently undertaking exploration activities. Western Metals currently holds a 68% interest, with an ability to earn up to 85% by spending up to US$1.6 million.
BASE METALS
An option to acquire 100% of the advanced Parys Mountain copper-zinc Project on the island of Anglesey in North Wales from Anglesey Mining plc (LSE:AYM), a UK based mining company listed on the London Stock Exchange (http://www.angleseymining.co.uk ). The total consideration for the project is AUD$29m including a 120 day due diligence. On signing the formal sale agreement, Western Metals will commence a full feasibility study estimated for completion in 2 years at a cost of $12 - $15m.
An agreement with BHP Billiton to explore for base metals in the West Georgetown region of northern Queensland. The agreement provides for Western Metals to achieve 100% ownership at the completion of an airborne geophysical survey whilst our partner has a claw back provision (on EL14722 only).
An option to purchase 100% interest in the Snowbird Nickel Project in the Northwest Territories of Canada by paying a non-refundable US$250,000 cash payment following a due diligence period, drilling one exploration drill hole, and paying a further US$1,250,000 cash payment in 2009. BHP Billiton retains a 60% back-in right.
WMT has purchased a 100% interest in all exploration data relating to the Mid-Continent Nickel Project in Minnesota including all regional geophysical data, drill hole and analytical data owned by BHP Billiton by payment of US$300,000.
A joint venture in Peru with 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 US$2.5 million over a four year period.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled and/or assessed by Glen Edwards who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Edwards is employed by Western Metals Ltd. Mr. Edwards has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Edwards consents to the inclusion in the report of the matters based on his assessment of the available information in the form and context in which it appears. Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web: www.westernmetals.com.au
ASX: WMT/WMTO