Western Metals exits 2 projects

Subiaco-based minerals explorer Western Metals Ltd has decided to divest its interest in two overseas projects in a bid to concentrate on its flagship Mtonya uranium project in Tanzania.

The company said it had received expressions of interest for its 72 per cent stake in the Glade uranium project in the US, which it anticipates to exit before the end of the year.

Western has also elected not to exercise its option over the Lukkacha copper project in Peru, with its interest to revert to its Pervian joint venture partner.

"This allows WMT to focus on the quality projects within its portfolio whilst actively pursuing additional exploration opportunities as well as the acquisition of more advanced projects," Western said.

The company currently has cash reserves of $24 million.

Below is the full announcement:

Western Metals ("WMT") advises that following a detailed review of its project portfolio, it has decided to divest its interest in the Glade Uranium project in Colorado, USA and will not exercise its option over the Lukkacha Copper project in Peru. This allows WMT to focus on the quality projects within its portfolio whilst actively pursuing additional exploration opportunities as well as the acquisition of more advanced projects.

This divestment of non-core assets reflects the Company's strategy of continually monitoring its asset portfolio to ensure it generates the best possible return from resources committed to exploration and development.

All WMT projects are assessed according to strict technical and economic criteria with identified milestones in order to optimise the use of the Company's resources including cash and people. This also ensures that the Company has the capacity to evaluate and pursue other opportunities which may arise.

The Company currently has cash reserves of approximately $24 million and is undertaking an aggressive exploration strategy at its existing projects whilst actively pursuing the acquisition of more advanced projects offering rapid development opportunities as well as additional exploration prospects.

WMT's flagship exploration asset is the Mtonya Uranium project in Tanzania, where drilling has confirmed the presence of high grade uranium mineralisation over a strike length of at least 7km. WMT's other key exploration assets include the high grade Snowbird Polymetallic project in Canada and the West Georgetown Base Metals project in North Queensland.

Glade Uranium Project

WMT has received expressions of interest for its majority interest in the Glade Uranium project in Colorado, USA in which it currently holds a 72% interest with the ability to earn up to 85%.
Work carried out to date at Glade has included geochemical surveys and reconnaissance RC drilling with initial drilling encountering anomalous U3O8. Whilst results to date have been encouraging, WMT has determined that the Glade project no longer meets the Company's investment criteria and may be of greater value to other parties with interests in the area.
WMT anticipates finalising its exit from this project prior to the end of 2008.

Lukkacha Copper Project

WMT has elected not to exercise its option over the Lukkacha Copper project in Peru effective 1 August 2008. In keeping with its joint venture agreement, WMT's interest will subsequently revert to its Peruvian JV partner.
Work completed to date by WMT has included acquisition and interpretation of Aster hyperspectral satellite imagery, stream sediment sampling, geological mapping and detailed litho-geochemical sampling.
Based on the results of these activities, the Company has determined that it is no longer appropriate to continue its involvement in the next stages of exploration in this project.