Re: WME - West Australian Metals Präsentation Germany 2
...second part
First Mr. Schlag described the area Namibia with its various uranium places on the basis of a radiometric map. Mr. Schlag descriped a comparison of the other uranium Explorers and already partly active uranium enterprises and compared them very descriptive with the Marenica project of WME. At present there are 49 concessions in Namibia.
1. Rio Tinto (Rossing mine) highly profitabel.
2. Bannerman (Xemplar), here is to be diminished according to its estimate the uranium very uneconomically. On the one hand because the geographical condition of the area resembles like a moonscape similar structure (by own photos occupied) and the uranium is in geologically unfavorable accumulations present. You can compare this with a sheet of paper perpendicularly in the soil, and in irregular distances in the appropriated area is distributed. So thus the drillings are implemented not perpendicularly but in an angle diagonally in the earth.
3. Long Heinrich (Paladin), production since 2006, 1200 tons uranium per annum, works together with Deep Yellow on an extension in the south of their area. The Paleo Chanel of Long Heinrich is shown also on a map in the WME Presentation as comparison with the Paleo Chanel of WME's Marenica project and clarifies the enormous potential of WME, said Mr. Schlag.
4. Valencia (Forsys), production planned in 2009, 1300 tons uranium per annum, so far are however no mine activities recognizable. In photos Mr.Schlag made 2-3 months ago, locally is only one building, a small hall, to see, in which the drill cores etc. are stored. Likewise the water problem does not seem solved. The continuation of the water pipeline of Areva would be very cost-intensive in opinion of Mr.Schlag. Because the geographical situation by Valencia (the area lies around some more highly) makes it necessary to install conspicuous pumpsystems.
5. Rossing mine (Rio Tinto), production since 1976, 4500 tons uranium per annum maximally, at present approx. 3700 tons per annum, highly profitabel and at present they works on an extension of the area. In addition there is a 15% participation of the Shah of Iran... from here comes the Iran uranium. Who is surprised ?
6. Uramin Trekkopje (now Areva), production start end of 2008, 3800 tons uranium p.a. Characteristic: Own water supply by depth drilling (groundwater + desalination plant) 60000 cubic meters water daily available. Important point for WME: The water pipeline runs to the borders between the areas of Trekkopje and Marenica, lying next to each other, so that a water supply for WME has good chances. Particularly this source of water is hold by 50% from the State of Namibia and 50% by Areva.
7. Marenica (WME), production planned 2012, past conservative delivery of 1500 tons uranium per annum, geologically economic mining possible, the surface is very evenly and homogeneous. If you take Long Heinrich (Paladin) to the comparison, you already can see the size of the Marenica project, and the past resource estimations from WME could be in a multiplication of the uranium deposits, that¡¦s probable. Unfortunately to more exact conclusion none of the 3 gentlemen let itself in. Only Mr. Reisgys said to me in the personal discussion, that we will hear a lot of positive messages in the next weeks and months more of WME. Primarily and secondarily uranium deposits. The Paleo Chanel contains mainly secondary uranium, which the area north the Priority AREA also contains primary uranium.
Since we always discuss primary and secondarily uranium, I explicitly inquired Mr.Schlag, which differences exist here. Simple answer: Primary uranium is locked in the pieces of rock, whereas the secondary uranium results from it, that loose rock in many years is laped over from " uranium " , and the rock itself then gradually consolidated. My question about economy was answered by Mr. Schlag and by Mr. Reisgys clearly with cost advantages for secondary uranium. The rock is simple to diminish and / or in the mining process more economically, because it¡¦s more loosely. The uranium content with secondary uranium is substantially higher than with primary uranium, so that fewer rocks for the same quantity would be needed. According to Mr. Schlag, Primary uranium is assimilated if the uranium price is relatively high and economical. Therefore the more valuable secondary uranium can be reserved for times in those the uranium price is deeper, and an economical production is more strongly in the focus.
The conclusion of the presentation Mr. Leon Reisgys, Technical Director of WME, formed. With very interesting explanation he described the activities and past results, on the basis of the maps, which are also in the presentation on the WME homepage included. The Paleo Chanel is comparable to a riverbed, which leads rock uranium-deposit instead of water. The Paleo Chanel from Marenica is, as already mentioned, compared with the Chanel of Long Heinrich around a multiple larger. According to first analyses the uranium is just as stored as however in the Rossing mine of Rio Tinto, with a serious difference, on the Marenica Projekt area are 4-5 Alaskit Rocks with hopeful Uranium deposit. In addition the past drilling results point a nearly twice as high uranium content to e.g. Trekkopje (to the comparison: WME Marenica over 200ppm, Trekkopje approx. 120ppm).
Mr. Reisgys calls the Trekkopje Mine a low cost uranium producer with approx. 20$ production costs per Pound uranium, therefore he is very confident that WME will be substantially more economical with similar production costs. In addition comes, that Mr. Reisgys told me in the following personal discussion that per 3 Pound promoted uranium we can add also 1 Pound vanadium. It is out of my knowledge, but I¡¦ve never seen vanadium in a calculation and / or publication of WME. So there is an additional source of income which can not be underestimated with todays vanadium prices.
The further activities are specified after plan as in the presentation documents. Still in April it will give a message to new " target rank ". Center of the year in June / July 2008, we expect the results of the areas outside of the Priority AREA. Until to the end this year, it will give also a new calculation after JORC Standard.
the diameter of the red circles indicates the height of the uranium concentration
Map of the current activities
1 Priority AREA
2 + 3 are the areas from which we will receive the results of resources in the next weeks.
4 this area became now geological mapping. After the first evaluations in this area the primary uranium is expected.
The current drilling activities will be limited to the areas 1-3 in case of high costs for drillings. Since drilling is an enormous cost factor, we see here also the largest problem of WME....they require finacial capital.
The question for future financing WME was asked to Mr. Johnston. He insured that WME takes the financial situation very seriously. They look for contacts to investors world-wide, particularly he mentioned North America, without calling here concrete names. In my personal discussion with Mr. Reisgys after the official part, I experienced that the WME Team also was in Frankfurt this week. There they likewise held an enterprise presentation in a very small circle of investors (5-6 people). H. Reisgys spoke of fund-investors, wanted to call no names however. Both, Mr. Johnston as well as Mr. Reisgys, stressed several times that the following News and Resource updates will help WME definitely to further financial capital.
I am very anxious of whether the information politics by WME will be expanded in the next months. I complained the meager information politic of WME in the past months to Mr.Reisgys. He commentated with the sentence: ¡§I am firmly convinced that we all get a tide of good News and information from WME in the near future. Mr. Reisgys sounded to me as an very openly and honestly man, at all he was a very excellent and pleasant interlocutor. He explained even due to my demand for the northern area of the Priority area (where the primary uranium is assumed), on the basis one of its specialists provided map, the proceeding and the current conditions to me exclusively.
Finally my personal result: The resources and the work of the WME Team will bring us with security still many positive surprises. The next weeks and months will show it. From my view only the capital shortage is a small downer.
All the best..from Germany send you ...hk2000