WME - West Australian Metals

[imajica]

according to historical precedence, WME generally reports to the market every 4-6 weeks. last annnouncement was on March 22nd - we should have a price sensitive announcement very soon regarding more results from Marenica

 

[imajica]

It is hard to believe that there are barely any ASF members on this one!

nice 1 cent gain today to 26.5c and finishing on the day's high - anticipation will increase as we inch closer towards the quarterly report regarding results from Marenica - exciting times ahead for WME

 

[imajica]

just finished reading the quarterly

a very comprehensive, well-written document

WME is on track to define a resource by the end of 2007, thats for sure!!!!

they are waiting on assay results and will be reported to the market as soon as they are received

they are also investigating 'Rossing' style primary mineralisation


Go WME!!!!! wooohooo

 

[Gurgler]

Yes, Imajica, a nice 40+% gain in the past month and one feels it has yet to finish its current move.

Picked it again in stock tipping this month; we'll see if it appreciates.

I read on the Uranium Bull thread that Grigor ranked WME as fully valued. See what the market says.

 

[imajica]

Warwick Grigor merely ramps stocks he has a vested interest in, he is not to be trusted. saw an interview the other day and he was going on about Monaro Resources as one of his favourite U plays (that's because he has a s**tload of shares in them)

WME is nowhere near fully valued, reasons:

1. 30% of tenement has an historical resource of 18 million lbs (this alone would value WME at a market cap of around 162 million = $9 X 18 million)

2. most mineralisation occurs near the surface (50m depth or less) which means it is cheaper to mine than an underground pit -this is what CTS will have to do which is far more expensive - nice one Grigor!!!!

3. Marenica is in a highly prospective uranium province - down the road from Rossing and langer Heinrich - and contains similar geology to the Rossing area

4. Namibia is U friendly - a mine will be up and running here at least 2-3 years soooner than a new U mine in Australia

5. upgrades to the 18 million lb resource is practically a given as the remainder of the tenement is displaying higher average U grades


some people on here have been whinging about the grades from the historical areas, I think we all forget that Rio Tinto's Rossing mine has an average grade of 300ppm - nuff' said

as always , DYOR

 

[imajica]

New article from RESOURCESTOCKS - provides a good summary of what WME is alll about.

Big plans for uranium play

Thursday, 3 May 2007

THE resurrection and potential production of a Namibian uranium project that one of the world's biggest mining houses walked away from 25 years ago is showing real promise among the plethora of new uranium hopefuls. By Mark Mentiplay, RESOURCESTOCKS*.

Uranium oxide samples

A view of the landscape at West Australian Metals' Marenica uranium project in Namibia

West Australian Metals plans to begin drilling its Namibian uranium project within months with the objective of defining a JORC compliant resource containing 8000 tonnes of uranium oxide before the end of the year.

WA Metals technical director and acting chief executive Leon Reisgys told RESOURCESTOCKS drilling on the Marenica Uranium Project was scheduled to begin in the next quarter of this year, the latest phase of a fast-track process begun only last year to validate and build the resource previously outlined by international precious metals major Gold Fields.

Back in April 2006, WA Metals executed an agreement to acquire 80% of the highly prospective Marenica project by spending $A335,000 on exploration. The remaining 20% is held by a Namibian citizen, who will be free carried through to a decision to mine.
In light of current uranium prices, the existing resource, the project's geological signature and proximity to two major uranium mines, the entry price seems very attractive.

Gold Fields had previously estimated a palaeochannel related resource of around 40 million tonnes at 200 parts per million equivalent uranium oxide (eU3O8), containing 8000t (about 18 million pounds) of eU3O8 based on extensive exploration, including 32,000m of drilling.

Although not JORC code compliant (it didn't exist then), the estimate and uranium inventory summary was prepared and submitted to the Nuclear Development Corp of South Africa and conformed with the then internationally accepted protocol for reporting uranium mineralisation to the International Atomic Energy Agency.

Higher-grade zones within the mineralisation included 9.7m at 980ppm eU3O8, 8.1m at 500ppm eU3O8, 11.7m at 240ppm eU3O8 and 3m at 754ppm eU3O8.

The resource was found within the eastern half of the over 700 square kilometres now controlled by WA Metals in shallow palaeochannels and weathered basement rocks to a maximum depth of just 20m.

But the area explored by Gold Fields covered only 30% of WA Metals' exploration licence and did not include about 25km of the major Marenica palaeochannel interpreted to traverse the project area.

"I'm pretty confident about the Gold Fields work and have no reason to doubt the integrity of their data or numbers," Reisgys said.

"But they do require validation and that's what we have been doing over the last few months via trench, pit and rock geochemical sampling, radiometry and inputting historical data. The results are encouraging and confirm the presence of significant and widespread areas of near surface uranium mineralisation.

"I expect there will be higher grade resources within those outlined by Gold Fields, which we will target sooner, rather than later. That's what the drilling will be aimed at, as well as targeting other areas," he said.

Coupled with a low-cost entry project, WA Metals is nicely cashed up to the tune of about $2.5 million following a recent $1.9 million capital raising.

And the Marenica Uranium Project has a couple of successful, high profile neighbours.
The Rio Tinto operated Rossing uranium mine, 60km to the south, has been in production since the late 1970s and produces about 6% of the world's uranium oxide.

About 100km to the southeast, just beyond the Rossing mine, is Paladin Resources' Langer Heinrich mine, 32Mt at 700ppm U3O8, which began production at the end of last year in its run-up to 1180tpa uranium oxide over a minimum 17 years.

Reisgys said the Marenica mineralisation is similar to the Langer Heinrich palaeochannel type uranium mineralisation and the licence prospective for Rossing style mineralisation.
Although lower in grade, the Marenica resource shows significant amounts of uranium mineralisation and abundant scope to define higher grade zones.

It is also only 90km northeast of the town and deepwater port of Walvis Bay.

The Marenica uranium mineralisation was discovered in the 1970s, along with a number of other significant uranium bearing palaeochannels in the same province, including Langer Heinrich.

Gold Fields of South Africa Ltd completed around 32,000m of project drilling in more than 2000 holes, focused on the northeastern sector where airborne radiometrics, wide spaced trenching and pitting located four major uranium anomalies (Anomalies 1-4) covering about 7sq.km. Uranium mineralisation was also reported between and adjoining Anomalies 1-4, within a broader airborne radiometric anomaly covering about 18sq.km.
The four major anomalies were investigated by detailed geophysics and drilling. Closer spaced drilling, in places down to 40m by 40m, was undertaken to a depth of 35m with holes radiometrically probed to allow log-based grades to be calculated.

Exploration work on the project by Gold Fields ceased in 1982 as a result of depressed uranium prices – less than a third of what they are now – and in 1999 the company merged with Anglo Gold to focus on gold.

But there is no doubting the intensity and focus of the exploration up to 1982.

"Nothing has been done there for 25 years, but there is no doubt Gold Fields did a hell of a lot of work on this project, one suspects with a view to completing a feasibility study," Reisgys said.

The drilling by Gold Fields was focused largely on the testing of radiometric anomalies defined by airborne and surface surveys – the more easily identifiable surface/near-surface uranium occurrences.

Trial radon surveys by Gold Fields over areas suspected of hosting uranium mineralisation beneath surface cover reported anomalies over areas with little or no surface radiometric anomalism.

"Exploration technology has also improved greatly over the last 25 years, particularly airborne geophysical surveys, which have shown to be very important in South Australia for defining palaeochannels."

WA Metals has completed the first phase of a program to locate old drillholes, channel sampling of trenches, surface rock sampling, geological prospecting, structural interpretation using satellite imagery and further processing and reinterpretation of geophysical data flown by the Namibian Ministry of Mines in 1995, along with its own radiometrics flown late last year.

The program, concentrated on Anomalies 1-4 and to the immediate west extension of the 25km long Marenica palaeochannel, was aimed at confirming new and known uranium bearing areas, and identifying potentially higher-grade zones for future exploration including drilling.

The company has confirmed the presence of previously identified mineralisation and is assessing the prospectivity of targets outside the previously drilled areas. The immediate upcoming phase of exploration will include radon surveys to identify potential uranium mineralised zones below sterile sedimentary cover, and compiling of all work to generate drilling targets, including possible radiometrical relogging of old drillholes.

Drilling to both confirm and extend previously outlined mineralisation within the Anomalies 1-4 area, as well scout drilling of newly defined targets to the west in the Marenica palaeochannel system, is being planned.

Metallurgical testwork carried out by Gold Fields has indicated that mineralised material from Marenica can be treated using conventional processing techniques to achieve high uranium recoveries.

Perth-based RM Capital's RM Research says excellent potential exists for the discovery of further mineralisation within 25km of strike of the Marenica palaeochannel downstream of the defined resource.

The analyst has put a "speculative buy" tag on WA Metals and considers, given its capitalisation of around $55 million fully diluted after its recent capital raising, it provides a compelling alternative to the likes of fellow Namibian uranium aspirant Bannerman Resources, with a capitalisation of around $200 million fully diluted.

 

[Punter]

Warwick Grigor merely ramps stocks he has a vested interest in, he is not to be trusted. saw an interview the other day and he was going on about Monaro Resources as one of his favourite U plays (that's because he has a s**tload of shares in them)

Haha imajica too right with your analysis here. All the stocks reccod by Grigor are backed by him or his company Far east. He is a shameless ramper, but he speaks well.

I would like WME to release some of its downhole results, they haven't released a fresh drill hole or logging yet...

 

[gregcourageous]

Hello All - Slow week for WME, I'm guessing people are getting sick of waiting??? Could be an opportunity to top up. Does anyone have any idea when results are expected? If i was to call the company would they be able to give a rough date? I'm trying to decide whether to boost my holding in WME or YML. Any help would be appreciated.

 

[boy_888]

has anyone any idea when the next drill results update for wme is due? an activites update should be around the corner?

 

[gregcourageous]

Its starting to annoy me a little waiting as well. I read somewhere or other that there was a hold up in the place that is processing the results, who knows but. Either way nothing has changed and there is no reason for the results to be negative, remember they KNOW that there is uranium in there, it just depends how much. Hopefully alot, i was almost going to forget about WME and put the extra money in YML when they were both trading at 23 cents :-(

 

[gregcourageous]

I emailed the company and got this response.

Looks like we may still have a while to wait :-(
At least we know. Just have to hold and hope for the best.
------------------------------------------

Greg,

To date we still await results from the Laboratory in South Africa, as
you will appreciate the massive increase in exploration companies and
the sampling thus generated has put the Labs under a large amount of
strain. Whilst we hope to have the results sooner rather than later
there is little we can do to accelerate the process, the labs are only
designed to process so many samples per day and are currently running
above capacity - this is a world wide issue and applies to Australian
labs as well (as I am sure they would tell you should you wish to
question them). As a result we are unable to say when our results will
be available but we hope it will be in the none too distant future. In
the mean time we appreciate your patience.

Regards

Ron Reid

Senior Geologist

 

[boy_888]

substantial increase in turnover in WME today. overdue uranium drill results must be getting close to being released.

 

[gregcourageous]

Well its been over a week since i got that email (see my previous post), so surely the backlog in the center has almost cleared. I'm a little over waiting! Going away next week and need to sell something for some extra cash. Would love WME to fly now...

Maybe the increase in volume today was all the boys in South Africa working down at the lab who couldn't believe their eyes when they saw what was on their tables

 

[mu5hu]

You were right fellas,

Results have just been released!! Looks encouraging!

Wat do you guys think?

 

[mick2006]

good to see some hits over the average 200ppm uranium, the market seems to like the results the depth is building nicely this morning.

 

[mu5hu]

good to see some hits over the average 200ppm uranium, the market seems to like the results the depth is building nicely this morning.

SOME?? looked like MOST of them hit over 200 ppm lol.

And yeah the market seems to like it..but we'll see if it can hold it throughout the day and close on a high

 

[boy_888]

these results are promising! market cap for WME still small, iin actuak fact comparable to some grassroots explorers out there! lol!

 

[gregcourageous]

Remember this is only 5 / 150 holes drilled. So we still have 145 results waiting, which if on average as good as this they will get the go ahead to mine. Judging by that map the better results seem to be coming from the east, these holes are from the west. Sit tight boys, this is only the beginning of a steady stream of results, and if they keep hitting as good as they are now then put on your seat belts.

 

[MBI]

these results are promising! market cap for WME still small, iin actuak fact comparable to some grassroots explorers out there! lol!

It is indeed an encouraging drilling result, but notice that after the initial general market uplift this morning, the sp has gone down by 1cts right now.

WME has a high number of unexercised options. Did a quick calculation the share dilution is around 60%, which IMO is very significant.

Anyone has any to share on how this % compared to other counters?


Cheers ...

 

[mu5hu]

yes quite dissappointed with the stocks price. Didn't hold its high prices very well. Wonder what the market was thinking?

although it did bounce off 22c which seems to be a support/resistance level