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 ASX / Announcement 2 July 2008 Western Metals earns 60% interest in joint venture with Uranium Resources plc in Tanzanian uranium projects. Western Metals (ASX:WMT) is pleased to announce that effective 30 June 2008, it has earned its 60% interest in its Tanzanian joint venture with Uranium Resources plc by completing A$4m expenditure since May 2006. Drilling recommenced at the Mtonya Prospect on 22nd May with approximately 3,500 metres of drilling completed as at the end of June. The first two batches of samples have been despatched from site to the assay laboratory and the first of the results are expected to be released in late July 2008. Other activities completed during the June Quarter include: • Completion of a high-resolution airborne radiometric survey – Ruvuma Project Area • Commencement of ground based reconnaissance work in the Ruvuma Project Area – including detailed mapping, ground geophysical and geochemical surveys of the recently discovered Eland prospect 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 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. A joint venture with Lynx1 LLC of the United States. The JV holds exploration and mining rights over prospective land in Colorado. Western Metals currently holds a 68% interest, with an ability to earn up to 85% by spending US$1.65 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 project is currently in a final due diligence stage. On signing the formal sale agreement, Western Metals will commence a feasibility study estimated for completion within 2 years at a cost of A$12 - $15m. An agreement with BHP Billiton to explore for base metals in the West Georgetown region of northern Queensland. Western Metals has 100% ownership with BHPB retaining a claw back provision over the southern tenement (EL14722). 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. The project is currently in the due diligence phase with an outcome expected by the end of July 2008. 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. 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 earn up to 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
WMT Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
