24 july 2008 ms elizabeth harris senior adviser, …2008/07/24 · 24 july 2008 ms elizabeth harris...
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24 July 2008 Ms Elizabeth Harris Senior Adviser, Issuers (Perth) Australian Stock Exchange 2 The Esplanade PERTH WA 6000 Dear Elizabeth Australian Uranium Conference – Updated Presentation As discussed, please find attached Western Metals’ updated presentation from the Australian Uranium Conference to include our Competent Person Statement. For and on behalf of Western Metals Ltd,
Morgan Ball Company Secretary and Chief Financial Officer
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
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TanzaniaAn Emerging Uranium Province
Uranium Conference – Fremantle July 08
ASX: WMT Presented by George Bauk Managing Director 1
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Where this presentation contains “forward-looking statements”, these statements are based on information and assumptions and involve expectations or beliefs as to future events or results as understood at the date of this presentation. All forward-looking statements are represented in good faith and have a reasonable basis at the time that they are made. However, such statements are subject to various risks and uncertainties, many of which are beyond the control of the Company, which could cause actual results to differ materially from those represented by the forward- looking statements. Any representation in this presentation should not be relied upon as to its accuracy or completeness nor as a recommendation or forecast by the Company. The Company advises that independent financial advice be sought before concluding any binding decision made in connection with this presentation. The representations made within this presentation should not be construed as either an offer to buy or sell any securities of the Company in any jurisdiction.
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DisclaimerF
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Western Metals is
An emerging resource company developing a portfolio of world class projects
A quality team with expertise in strategy, acquisitions, exploration and operations
Well funded with A$25m cash
Investigating numerous acquisitionsFor
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Achieved substantial growth in 2 years
JUNE 2006Market Cap A$6m
A$3m
SnU
JULY 2008Market Cap A$46m
A$25m
U
Cu
NiZn
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Introducing the Board and Management
Mr. Peter Smith, Executive DirectorLeadership, Mining EngineeringWMC, Ensham, Rio Tinto
Mr. George Bauk, Managing DirectorLeadership, CommercialWMC, Outokumpu, Arafura
Mr. Geoff Chapman, Executive DirectorManagement, GeologistWMC, KCGM
Mr. Marc Cardaci, Non-Executive DirectorBusiness Leader, EconomistCEO – CFC Group
Dr. Chris Greig, Non-Executive ChairmanBusiness leader, Chemical EngineerExtensive International Project Experience
Mr. Morgan Ball, Chief Financial OfficerChartered Accountant, Commercial, Finance, M&AErnst & Young, WMC, P&O, Brambles
Mr. Glen Edwards, Exploration ManagerExploration experience in Africa, Australia and Asia, GeochemistIAMGOLD, Newmont, Normandy, Goldfields S.A.
Dr. Ben Grguric, Principal GeologistGeologist, specialist mineralogy & ore deposit studiesWMC, BHPB
Mr. Howard Golden, EGM - Global DevelopmentGlobal experience, GeophysicistBHPB, WMC
Mr. Livinus Komba, Country Manager - TanzaniaExploration geologist (uranium, gold and diamonds)Resolute Mining, Barrick Gold, Tanzania government
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Shares on Issue (ASX Listed WMT) 622m
Listed Options (ASX Listed WMTO) 85m
Unlisted Options (WAEP 24c) 85m
Market Capitalisation ( @ 7.4c) $46m
Cash $25m
Top 20 Shareholders ~20%
CorporateF
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“Western Metals Continues to Drill High Grade
Uranium Mineralisation in Tanzania”
MRC143 - 12 metres at 676 ppm U3 O8 from 22 metres
MRC143 - 3 metres at 690 ppm U3 O8 from 12 metres
MRC139 - 2 metres at 1,525 ppm U3 O8 from 11 metres
MRC116 - 7 metres at 263 ppm U3 O8 from 44 metres
MRC136 - 5 metres at 222 ppm U3 O8 from 18 metres
MRC127 - 3 metres at 250 ppm U3 O8 from 4 metres
ASX Announcement – 23 July 2008F
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Uranium – Supply v DemandF
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Reactors
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Nuclear Power Reactors – Existing and Planned
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TanzaniaF
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Kayelekera
Rossing
Langer Heinrich
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. Occurrence/DepositUnder Development.
Uranium
Southern Africa Uranium Deposits
Major Producer.Southern Africa rich in uranium
Significant contributor to world supply
Under explored region
Range of deposit styles
Karoo Basins significant opportunity
• High grade near surface
• Major project – Kayelekera
• Emerging project – Mkuju River
• Potential for low cost extraction
• Significant coal production
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Major Players in Southern TanzaniaF
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Emerging Uranium Province - Tanzania
Frontier Exploration / First Mover
Area Identified 1970s1km spaced airborne radiometrics 1978Re-entry of uranium explorers 2006First Drilling 2007First Forecast Production (Mantra) 2010
Remarkable success in a short timeframe
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Stable democracy keen for investment
Tanzania has a stable multi party democracy
Significant economic reform and liberalisation
Government support for resources industry
12th lowest country mining investment risk – Chubb 07
3rd largest gold producer in Africa
Excellent prospective geological terrain
Limited historical exploration for Uranium
Uranium provinces are now emerging
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Project AreaF
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Name and Position Skills
Mr. Livinus KombaCountry Manager Tanzania
Geologist, operations and Government experience
Mr. Chaz MihiyoSenior Geologist
Senior Geologist
Mr. Alphonce MichaelSenior Geologist
Senior Geologist
Mr. Peter SifiJunior Geologist
Graduate Geologist
Mr. Adam SajiroJunior Geologist
Graduate Geologist
Mr. Henry PolepoleLogistics Coordinator
Logistical Support
Ms. Devotha James Data Administrator
Admin/Database Geologist
Mr Sandy MapundaTechnician
Technician
Mr Luckson KatarihyaAccountant
Accountant
Mr. Richard KulungeField Supervisor
Field logistics, camp management
PeopleF
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SafetySafety Management Policy ProceduresSpecific Radiation Safety PolicyTraining CoursesReporting and AuditingTEAC ComplianceExcellent Safety Record
EnvironmentEnvironmental Management ProceduresSupervisionTraining Courses Base Line Studies and MonitoringReporting and AuditsCompany OHS&E Officer
Safety & EnvironmentF
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Community
Local Employment
Community consultation
Access agreements with land users
Community based programs
Supporting events
Supporting local orphanage
Commitment to school building
Student employment & training
Chamber of Minerals member
Buy local goods and services
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Exploration Statistics
October 2006 - July 2008
High resolution airborne geophysical surveys
188 RC holes for 11,518 metres
Extensive surface trenching
Geological mapping
Ground geophysical surveys
Hydrogeochem sampling
Surface sampling
Petrology
Helicopter supported reconnaissance
Total expenditure AUD$4.5 Million
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Project Area F
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Mtonya Corridor
May 2006 - Identified and sampled anomaly from
regional radiometrics – 980ppm U
August 2006 – Surface geophysics
August 2006 – Trenching including initial
results of 22,950 ppm (2.29%)U
May 2007 to current – Drilling and Detailed
Airborne Radiometric Surveys
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Mtonya Corridor Drilling
High resolution airborne radiometric survey identified 7km by 2km trend
4 phases of RC drilling to evaluate prospects
Drilling identified multiple stacked zones of sub- surface mineralisation
Drilling to date has been of a broad spaced reconnaissance nature
Zones of significant Uranium mineralisation identified at
HenriParaTahbilkMoystenDalwoodGalwayRufusGrandfather
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Henri Prospect
Identification of multiple, stacked, sub surface uranium mineralisation
7 m at 1,233 ppm U3O8 (incl. 3 m at 2,607 ppm)
7 m at 549 ppm U3O8 (incl. 4 m at 843 ppm)
6 m at 507 ppm U3O8 (incl. 2 m at 1,145 ppm)
7 m at 400 ppm U3O8 (incl. 3 m at 770 ppm)
4 m at 515 ppm U3O8 (incl. 2 m at 855 ppm)
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Grandfather Prospect
Nov 07 Trenching results included
1.2 m at 7,723 ppm U3 O8
1.2 m at 4,773 ppm U3 O8
Initial RC Drilling Results
12 m at 676 ppm U3 O8 from 22 m
3 m at 250 ppm U3 O8 from 4 m
2 m at 1,525 ppm U3 O8 from 11 m
5 m at 222 ppm U3 O8 from 18 m
2 m at 300 ppm U3 O8 from 22 m
3 m at 690 ppm U3 O8 from 12 m
Assay results first 4 holes only
Drilling continues
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Regional Targets F
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Regional Prospects
Foxy Prospect
Mineralisation similar to Mtonya
Grab samples – 13,400 ppm U3 O8
Radiometric anomaly >400 m strike length
Eland Prospect –Nepheline syenite
Foxy Prospect – Secondary Uranium
Eland Prospect
Nepheline syenite hosted mineralisation
Grab samples (maximum values)
1,080 ppm U3 O8 , 644 ppm Ta and 4,540 ppm Nb
Radiometric anomaly >400 m strike length
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MTONYA PROJECT AREAProspects: Grandfather, Henri, Rufus, Ben Ean, Moysten, Galway, Tahbilk, Madfish, Regional / Conceptual
Jul Aug Sep Oct Nov Dec
Drilling
Ground Geophysics
Hydrogeochemistry
Reconnaissance
Trenching
RUVUMA PROJECT AREAProspects: Eland, Foxy, Regional / Conceptual
Drilling
Ground Geophysics
Reconnaissance / Helicopter
Hydrogeochemistry
Trenching
RUHUHU PROJECT AREAProspects: Pedro, Ngaka, Regional / Conceptual, Coal
Drilling
Ground Geophysics
Reconnaissance / Helicopter
Hydrogeochemistry
Trenching
Programme 2nd Half 2008F
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Exploring in a “emerging uranium province”
Capability to take projects through to production
Deliver on promises made
Well funded for future programs – AUD$25m
In SummaryF
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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.
Competent Person StatementF
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