WESTERN METALS LIMITED
Exploring in a Emerging Uranium Province
WMT - Diggers and Dealers Presentation - Mr George Bauk, Managing Director
Tue, 5 Aug 2008 01:45PM
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Mr George Bauk
Tue, 5 Aug 2008
01:45PM Australia/NSW
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WESTERN METALS LIMITED (WMT)
ASX code: WMT
Website: http://www.westernmetals.com.au
Industry: Materials
Principal Activities:
Mineral exploration
Address:
100 Railway Road, Spectrum Building, Unit 7
SUBIACO
WA
Phone: 08 6380 3600
Fax: 08 9382 8022
Executives & Directors
Dr Chris Greig , Non Exec. Chairman
Mr George Bauk , Managing Director
Mr Marco Cardaci , Director
Mr Geoff Chapman , Executive Director
Mr Peter Smith , Executive Director
Mr Morgan Ball , CFO
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Company ASX Announcements
Company ASX announcements can be viewed on the ASX website.
Announcements from the preceding six months are shown below.
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WESTERN METALS LIMITED (WMT) Events
Australia/NSW
WESTERN METALS LIMITED (WMT)
| Western Metals earns 60% interest in Tanzanian uranium JV | Wed, 2 Jul 2008 |
| Western Metals Recommences Drilling in Tanzania | Thu, 22 May 2008 |
| Parys Mountain Historic Mineral Resource | Mon, 12 May 2008 |
| Investor Update - May 2008 | Mon, 12 May 2008 |
| Quarterly Cashflow Report | Wed, 30 Apr 2008 |
| Quarterly Activities Report | Wed, 30 Apr 2008 |
| Appendix 3B | Tue, 29 Apr 2008 |
| Becoming a substantial holder for SRZ | Thu, 24 Apr 2008 |
| Western Metals to acquire advanced UK Copper-Zinc Project | Thu, 10 Apr 2008 |
| Trading Halt | Tue, 8 Apr 2008 |
Please note: This company appears on this website as a result of its listing on the Australian Securities Exchange. Boardroom Radio does not claim any association with any company listed on this site.
PRESENTATION BY GEORGE BAUK, MANAGING DIRECTOR OF WESTERN METALS LIMITED (WMT)
“Exploring in a Emerging Uranium Province”
http://www.brr.com.au/event/49104
TUESDAY, AUGUST 5, 2008, 1:45 PM.
WMT Thank you, ladies and gentlemen. Today, I want to take you through the story of Western Metals. I will give you a brief overview of the corporate aspects,
10 followed by Tanzania, an emerging uranium province, a little brief update on Parys Mountain, and then finally the company’s strategy.
Western Metals is an emerging resource company and quality team, which I will take you through shortly, which I think is one of our real key assets. A
15 team that not only has experience and expertise in exploration but has the capacity to run operations. We are extremely well funded, and with today’s credit crisis, I think you will all agree that having $24 million in the bank puts us in a fantastic position. As a company, we are investing numerous acquisitions which include the Parys Mountain Project.
20
To give you a brief history about the company, Peter Smith, Geoff Chapman and myself took control of the company back in June 2006. A company at that time that had $3 million in the bank. We had a uranium prospect in Tanzania that was unexplored and our team resource in Tasmania are Australian. Over
25 the last three years, what we have done there has built an impressive company with a market capitalization of $42 million. As I said before, we have $24 million in the bank. We have grown the team to some 24 people including 10 people in Tanzania, and inside those 24 people are 14 geoscientists. We now have a portfolio of base metals and uranium. The Tanzania uranium
30 project has grown from 3800 square kilometres to nearly 14,000 square kilometres. We have completed nearly $4.5 million worth of exploration expenditure and had some outstanding results in the area. We have also built a number of other exciting opportunities around the world in base metals in Canada, the US, Peru, and Australia.
35
As I mentioned at the beginning, our team is one of our core assets. On your left is a member of Board of Directors including myself and the other gentlemen, and on the right hand side is our executive team. As far as you can, quite clearly, there is one common trait amongst us and that is we are all
40 male and we have also worked for Western Mining. This team has a broad experience base, a lot of time spent in operations as well as corporate activities with large organizations. Many of us spent a lot of time with Western Mining. We have 14 geoscientists in the company which is critical and important to take and advance an exploration company.
45
Just a corporate snapshot. Six-hundred and twenty-two million shares on issue. Market capitalization is $42 million and a substantial amount of that value is in our cash of $24 million.
Just to take you briefly through Tanzania, an emerging uranium province. If we just take a step back and have a look at Southern Africa, you can see here that in the dark brown, you have the Karoo Basin, which is a key area where we are focusing activities in Tanzania. You can see there is a
5 substantial amount of uranium occurrences in Southern Africa as well as a number of projects under development including (inaudible) (0:03:10) Kayelekera which is owned by Paladin in Malawi. Then, there are a number of major producers including Rio Tinto at the Rossing mine in Namibia. It has a range of deposit styles, and for us, we are focusing on the same sandstone
10 mineralisation.
Now, if we just have a look at the area which we have highlighted on this map, I will take you through in more detail. Our areas are shown here in the shaded areas. If you like, these three players play quite a predominant role in
15 tying up the Karoo and Southern Tanzania. That includes ourselves, Mantra resources, and Uranex. The focus is looking for sandstone-hosted roll-fronts in the Karoo sequence. We think it is an emerging uranium province. In 2008, you have seen a lot of success that Mantra Resources have put out.
20 I will just take you through the quick history of the area. In the 1970s, the area was identified. A 1-kilometre spaced airborne radiometrics flown in 1978. In the early 1980s, with the decline of the uranium price, a lot of people left including Uranex. We saw the re-entry of uranium explorers in 2006. The first drilling in the area was last year. Mantra recently put out a statement saying
25 they would be into production in 2010. That is a remarkable success story in such a short period of time.
Tanzania as a country. A couple of key points here. Twelfth lowest country mining investment risk as presented by Chubb in their 2007 risk survey. It has
30 got a very strong mining culture. It is the third largest gold producer in Africa with AngloGold Ashanti as well as Resolute and Barrick.
Next, you will see our people. We have developed an office in Tanzania to progress this project. Without people, projects usually move nowhere. We
35 spent $4.5 million in the area, and under the leadership of Livinus Komba, our Country Manager in Tanzania, the project has progressed according to plan.
From a licence to operate perspective, you can see that it is important to understand and implement good, safe procedures. Radiation, critical aspect
40 is associated with exploring for uranium. Environment, same thing. We are going to undertake baseline studies and we have management procedure placed in ensuring that we put the place back to the original ways. Community. From a community perspective, we really want to make sure that all stakeholders benefit along with us. We employ locally. We source locally
45 our goods and services. We also support community-based programs, which is just really critical to ensure that all people benefit from the process.
Our exploration stats. We have been here for two years. We have undertaken a number of high resolution airborne geophysical surveys. We have completed probably now 12,000 metres of drilling. We have done a number of other extensive geological processes in exploration and completed a $4.5 million spend.
5 Now what have we achieved as part of that $4.5 million spend? I will just quickly focus on the Mtonya prospect. In Mtonya, we have identified the uranium occurrence in May 2006 surface geophysics to further understand the area. We commenced trenching with some outstanding results and then we had commenced drilling in May 2002, and currently drilling is underway.
10
The first prospect we drilled in 2007 was Henri. We have identified some subsurface uranium mineralisation and you can see that there are a number of outstanding intersections that we have identified as part of that drilling.
15 Drilling at the moment is at Grandfather in the north-eastern corner. Those white dots represent the planned holes or holes that have been drilled and are awaiting assay results. First four holes have come back with some very exciting mineral intersections including 12 metres at over 600 ppm and 2 metres at 1500 ppm.
20
Regionally, we continue to look for other targets in the area. Last year, we identified Foxy and Eland. Just very quickly, Eland is a different style mineralisation which was overlooked (inaudible) (0:07:20). It is granitised. Grab samples identified over 1000 ppm. The radiometric anomaly covers
25 over 400 metres of strike length and we hope to be drilling there before the end of the year.
Parys Mountain copper and zinc project in Wales. We announced this in April 2008. On Monday, we announced that we have extended our negotiation
30 period with Anglesey Mining out of the UK as a result of our due diligence process which identified a number of items and then further discussing in clarity and we will be renegotiating the transaction hopefully before September 2008. There is a history of quite extensive surface drilling.
35 You can see on the next page, there are a couple of points from this. The last two holes drilled on this project in 2006 included 5.5 metres at over 22% zinc equivalent and 2.5 metres of over 45% zinc equivalent, so a very high grade opportunity.
40 Projects from a strategic point of view, we are really trying to identify opportunities to fill the bottom part of the triangle, looking for resource reserves and we plan to be in mining at some stage.
Growth strategy. Our exploration projects now will take far too long to bring it
45 to production, so we need to make sure that we fill the pipeline and look at introducing projects through acquisition to increase and accelerate the value proposition of Western Metals.
So I will leave you these couple of points about Western Metals. We are exploring in an emerging uranium province. We have the capability to take projects through to production. We deliver on our promises made and we have delivered on everything we have said to date in the past three years.
5 We are well funded in today’s climate, $24 million cash scheme.
Ladies and gentlemen, thank you very much.
PRESENTATION CONCLUDED
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