Hello everybody,Mikromosmos and i visited WMEs presentation in...

Hello everybody,

Mikromosmos and i visited WMEs presentation in Munich yesterday.
Here is what we could find out:
(Mr Woolford and CEO Young were present)


WMEs managment doesnt know,why there was so many shares were sold over the last weeks.Obviously beside the Polo directors, Batavia was selling.
WME is currently checking the share registry to have a better understanding of the sharestructure.

A fact is that we are short of buyers at the moment.

For the above reasons WME would like to substitute Polo and Batavia with a "strategic investor" and is currently talking with a possible candidate.


Furthermore we were told, that after the renewal of the license WME was contacted by several parties that are interested in the Marenica project.
Among them are several Chinese,Japanese,Russian and one European company and of course Areva.

WME is also considering other uranium projects,in which they may want to invest.

The Scaddan project shall be enlarged.They are exploring there at the moment.
WME is trying to acquire a license which is situated between the two existing WME licenses in order to have whole connected resource.
There are thoughts about then selling or starting a JV with this project.

The final resource upgrade will most likely not be published before christmas,maybe we have to wait in the beginning of january.
But of course we will have a lot of further drilling results in the meantime.Up to date there are still missing the results of another 750 drill holes for the paleochannels.

Mr.Young said the target for the the final resource (without the domes) will be around 40-45 Mlbs.

On the other hand he is pretty sure WME will be able to increase the average grades to the 200-220 ppm-area.
With an aftertreatment of the ore which mainly means the removal of the dirt and grinding of the stones it would be possible to reach material with grades of 400-500 ppm.
This would make Marenica economical concerning the grades.



Primary Uranium:

The drillings at Phillipus were stopped because they are not likely to be economical.
There is uranium there,but as Mr.Young said rather 5 than 50 Mlbs. (grades about 150 ppm)
The drillings at the second target Springbok seem to be more promising but the managment is still waiting for the results.
Beginning in the spring of 2010 (March/April) WME wants to start the exploration of the third most southerly dome,which is the one directly north of Arevas Trekkoppje.
Managment assumes that Trekkoppjes uranium could have been washed out from this dome,which makes it the most thrilling one to explore.

License renewal:

WME expects that other companies in Namibia will run accross the same difficulties if it comes to the renewal of the license.
After new standards explorers are expected to contribute to the welfare of the local people and environment.

The 5 % stake which WME has to give to Millenium will not be for free but has to be paid for!
Managment is currently negotiating the price.

The costs for the scoping study,which is expected to be released in Q1 next year will be around 1 Mio AUD.

The costs of the BFS would be around 12 Mio AUD,meaning WME would need to raise more cash for that.

Overall Woolford and Young are very pleased with the progress the company has done so far since the beginning of the drilling's program earlier this year.
WME was able to drill more than they expected.
In most cases it is not WMEs fault,that press releases (drilling results) are later than announced.
This is often due to delays of the labaratory.

Mr.Woolford was very annoyed with Batavias and Polos directors selling and sees this as the reason for the weak shareprice.
The entry of the above mentioned "strategic investor" could mean a relief for the shareprice.


We had a good impression from the explanations from our managment and believe WME to be on the right track.
Even though the estimate for the resource upgrade is a bit dissapointing concerning the amount,we are looking forward for the drill results of the two as yet-unexplored domes.

So long from Germany

Mikrokosmos and Wantedman