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WESTERN METALS PLOTS AGGRESSIVE GROWTH FOR 2008
DECEMBER 2007 QUARTERLY ACTIVITIES REPORT
Western Metals Limited (ASX:WMT) is pleased to report significant
progress during the December quarter which has left it well placed to execute
an aggressive growth strategy in 2008.
Western Metals is a diversified uranium, base metals and gold explorer
with a portfolio of potential world-class projects in Africa, Australia and the
America’s.
Managing Director, Mr George Bauk, said the company was determined for
2008 to be the year to transition Western Metals to become a notable resource
business.
“With a highly experienced management team and cash reserves of
more than $30 million, Western Metals has the resources to maintain both an
aggressive exploration strategy and actively pursue corporate opportunities,
particularly in light of the current uncertainty affecting international
equities markets,” Mr Bauk said.
During the December quarter, the company made significant progress on
all fronts in pursuit of its business strategy.
In Tanzania, where it has interests in uranium tenements covering more
than 14,000 square km, drilling extended the known strike of high grade
mineralisation at its Mtonya project, while trenching at the Grandfather
prospect also returned significant high grade results.
The Company has also made two potentially major uranium discoveries from
the first reconnaissance programme in the Ruvuma project, south of Mtonya.
In North America, Western Metals has substantially enhanced its asset
portfolio by securing an option to acquire the highly prospective Snowbird
Nickel Project in Canada’s Northwest Territories from BHP Billiton, while
approvals were granted to commence drilling at the Glade uranium project in
Southern Colorado.
In Australia, the Company completed a geological interpretation of the
West Georgetown project in Queensland to identify targets in anticipation of
securing access approvals needed to commence ground geophysical surveys and
drilling in the second quarter.
Mr Bauk said the path to the Company’s growth outcome would
require a balance of world class exploration programs complimented with
targeted corporate activities.
“This is a complex process requiring dedicated resources and
capital – to which we have already invested well in both and intend to
utilise this unique position to our advantage,” he said.
“We have a highly skilled and balanced team with a cross section
of capabilities required to run a dynamic growth business in our sector. We have also built a portfolio of world class
exploration assets in base metals, uranium and gold, all of which individually
have the potential to substantially grow the business.”
In 2007 Western Metals raised
$32m in capital which has provided the opening balance for 2008 of $30m, as
announced above.
“This secure position
means that we can manage the work programs on current assets in an aggressive
but responsible manner for some time to come.”
Mr Bauk said that while
successful greenfields exploration will ultimately lead to the greatest
multiples on investment, the Board was committed to complimenting this process
through a program of acquisitions of advanced projects and, or, cash producing
assets.
On the corporate front,
Western Metals engaged Azure Capital as a corporate adviser to assist in
identifying growth opportunities. The Company is currently evaluating a number
of potential project opportunities that may come to fruition in the coming
months.
Significant progress was made
during the quarter to identify likely corporate and project opportunities.
These investigations will progress through a rigorous but efficient assessment
process in coming months.
The Company has also prepared
an aggressive and fully funded corporate growth strategy for 2008 expected to
cost in the order of $10 million. Exploration activities will be focused on its
Tanzanian uranium projects where drilling is planned at a number of prospects
in the Mtonya Corridor and accelerated reconnaissance work across its entire
suite of projects.
Western Metals is also
planning a rapid ramp-up of work at West Georgetown once all access approvals
have been received.
Please refer to the attached
December Quarter Report for details of the Companies activities during the period.
For further information
contact:
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Paul Downie
Porter Novelli (Perth)
(08) 9386 1233
0414 948 127
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Unit 7, 100 Railway Road, Subiaco WA 6008 Tel: +61 (0)8 6380 3600 Fax: +61 (0)8
9382 8022