13 August 2008Western Metals to focus on high value...

13 August 2008

Western Metals to focus on high value projects

Western Metals (“WMT”) advises that following a detailed review of its project portfolio, it has decided to divest its interest in the Glade Uranium project in Colorado, USA and will not exercise its option over the Lukkacha Copper project in Peru. This allows WMT to focus on the quality projects within its portfolio whilst actively pursuing additional exploration opportunities as well as the acquisition of more advanced projects.
This divestment of non-core assets reflects the Company’s strategy of continually monitoring its asset portfolio to ensure it generates the best possible return from resources committed to exploration and development.
All WMT projects are assessed according to strict technical and economic criteria with identified milestones in order to optimise the use of the Company’s resources including cash and people. This also ensures that the Company has the capacity to evaluate and pursue other opportunities which may arise.
The Company currently has cash reserves of approximately $24 million and is undertaking an aggressive exploration strategy at its existing projects whilst actively pursuing the acquisition of more advanced projects offering rapid development opportunities as well as additional exploration prospects.
WMT’s flagship exploration asset is the Mtonya Uranium project in Tanzania, where drilling has confirmed the presence of high grade uranium mineralisation over a strike length of at least 7km. WMT’s other key exploration assets include the high grade Snowbird Polymetallic project in Canada and the West Georgetown Base Metals project in North Queensland.
Glade Uranium Project
WMT has received expressions of interest for its majority interest in the Glade Uranium project in Colorado, USA in which it currently holds a 72% interest with the ability to earn up to 85%.
Work carried out to date at Glade has included geochemical surveys and reconnaissance RC drilling with initial drilling encountering anomalous U3O8. Whilst results to date have been encouraging, WMT has determined that the Glade project no longer meets the Company’s investment criteria and may be of greater value to other parties with interests in the area.
WMT anticipates finalising its exit from this project prior to the end of 2008.
Lukkacha Copper Project
WMT has elected not to exercise its option over the Lukkacha Copper project in Peru effective 1 August 2008. In keeping with its joint venture agreement, WMT’s interest will subsequently revert to its Peruvian JV partner.
Work completed to date by WMT has included acquisition and interpretation of Aster hyperspectral satellite imagery, stream sediment sampling, geological mapping and detailed litho-geochemical sampling.
Based on the results of these activities, the Company has determined that it is no longer appropriate to continue its involvement in the next stages of exploration in this project.
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
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
A joint venture with Uranium Resources plc to explore in Tanzania. Western Metals has a 60% interest in the Mtonya Project, a 42.5% interest in an additional 10,413 km2 of tenements and a further 211 km2 under a 45% joint venture. The total licence area under Western Metals’ management is 14,062 km2.
BASE METALS
An agreement with BHP Billiton to explore for base metals in the West Georgetown region of northern Queensland. Western Metals has 100% ownership with BHP Billiton retaining a claw back provision over one of the tenements (EL14722).
An option from BHP Billiton to purchase 100% interest in the Snowbird Nickel Project in the Northwest Territories of Canada by drilling one exploration drill hole and making a US$1,250,000 cash payment before 31 December 2009. BHP Billiton retains a 60% back-in right.
WMT has purchased from BHP Billiton 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.
WMT has entered into an exclusive due diligence period until 30 September 2008 with Anglesey Mining plc (LSE:AYM) to assess the advanced Parys Mountain copper-zinc project on the island of Anglesey in North Wales.
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