West Australian Metals Limited (ASX: WME)

PRIMARY URANIUM MINERALISATION INTERSECTED AT MARENICA

Follow Up Drilling Planned Following Initial Successful Diamond Drilling  

International uranium company West Australian Metals Limited (ASX: WME) is pleased to advise that it has commenced planning for an immediate program of follow-up drilling at its 80%-owned Marenica Uranium Project in Namibia, Southern Africa, following the success of recently completed diamond drilling.

The recent program, comprising eight diamond holes (MRD032 to MARD038) for a total of 770.6 metres, has provided a significant amount of geological and structural information to advance the exploration for primary uranium mineralisation.

Diamond holes MARD038 and MARD039, which were drilled along the eastern margin of the Marenica dome, intersected several zones of hydrothermally altered granite with anomalous scintillometer readings of up to 750cps indicating the presence of primary uranium mineralisation.

The prospective area lies on the eastern edge of the Marenica Dome within and adjacent to a large radiometric anomaly. The Marenica East Prospect is located along the south-eastern edge of the Marenica Dome, the anomaly trends north-east over 300m and up to 80m wide, where bedrock is exposed. The discovery hole, MARD038, intersected mineralisation from 33 to 46m downhole.

Secondary mineralisation was also intersected in holes along the southern margin in a major east-west structure in holes MARD033 to MARD036. Down-hole probing of all drill-holes will commence shortly, with results expected shortly.

The company has taken an aggressive approach to the evaluation of primary uranium mineralisation at Marenica. Planning for a follow up Reverse Circulation drilling program is underway based on the success of this diamond drilling with a further A$3 million allocated to the 2009 field budget.

Summary

Drilling of primary uranium targets at Marenica has been completed, with seven HQ diamond drill-holes drilled for a total of 770.6m ( Table 1):

Holes MARD032 to MARD036 were drilled to the south of the Marenica Dome to test uranium mineralisation in alaskite adjacent to radiometric anomalies, and also to test primary mineralisation below previous RC bedrock anomalies. This drilling intersected highly deformed sequences of biotite schists  interbedded with abundant alaskite and pegmatite units. 

Holes MARD037 and MARD038 were drilled on the south-eastern margin of the Marenica Dome to test a strong surface radiometric anomaly. Drilling has defined several zones of strongly altered alaskite interbedded with limestone units, with initial scintillometer results showing broad zones of anomalous counts associated with the altered alaskite zones. Down-hole probing of all drill-holes will commence as soon as possible.

MARD037- minerlaised zone 33-37m

Reconnaissance Mapping

Sampling of the Phillipus Area along the northern marin of the dome has also been completed. The northern edge of the Phillipus Prospect was drilled late in 2008 and uraninite was identified as the primary uranium mineral in altered granites.

Recent mapping has identified a radiometrically active zone 700m long and 300m wide some 300m south of Phillipus, with closer inspection of this mineralised zone demonstrating heterogeneous grade distribution with significantly higher iron alteration/grey quartz associated with scintillometer readings up to 4300cps along the margins of the alaskite bodies adjacent to limestone units. 

Evaluation of this zone is a priority for the Company with the ground radiometrics and detailed mapping to begin as soon as possible.

A large radiometric feature occurs in the south eastern area of the Company?s Exclusive Prospecting Licence. Although poorly exposed along the eastern side, this is definitely a domal structure with granite core with the stratigraphy repeated on the SE margin of the Dome. 

The granite core is a medium grained biotite granite with pegmatite with intermittent rafts of schist and marble. Scintillometer readings were elevated over a very large area. A detailed radiometric survey is planned given what the Company has identified at Phillipus and along the margins of the Marenica Dome.

Mineralogy

International consultancy group SRK has been on site to collect a full suite of samples for mineralogy. A representative from Cardiff University has also collected samples for postgraduate research with information from this research expected to add significantly to the Company?s understanding of both mineralisation styles and ultimately refine exploration models in the region.

Composite samples are being taken to supply a quantity of mineralised material from both palaeochannel and bedrock environments, for metallurgical testwork which will be conducted at Mintek Laboratories, Johannesburg.

Resource

Work on upgrading the Marenica palaeo-channel resource category from Inferred to Indicated is scheduled to begin in June. A large number of the original resource holes completed by Goldfields will initially be re-probed on closer spacings, enabling a large part of the resource currently defined on approximately 120m by 160m spacings to be refined to 60m by 80m.

Re-interpretation of the geology and palaeo-channel has outlined areas of higher grade mineralisation associated with the steeper north-east trending edges of the three channels. These zones will be targeted by the new program of Reverse Circulation drilling planned for July.

Upgrading the resource category represents an important step towards the completion of a Scoping Study planned for completion by December 2009.

WEST AUSTRALIAN METALS LIMITED

John A Young

Chief Executive Officer

Notes

Information in this report that relates to exploration results reflects information compiled by Paddy Reidy Principal Geological Consultant of CSA Global Pty Ltd who has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is reporting on as a Competent Person as defined in the 2004 Edition of ?The Australian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves.? Mr Reidy consents to the inclusion in this report of the matters based on the information compiled by him, in the form and context in which it appears.

Information in this announcement that relates to Mineral Resources reflects information compiled by Jonathon Abbott and Arnold van der Heyden of Hellman and Schofield. Mr. Abbott has more than five years experience in the field of Exploration Results and is a competent person in terms of JORC standards for Exploration Results and of resource estimation in general. Mr. van der Heyden has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is reporting on as a Competent Person as defined in the 2004 Edition of ?The Australian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves.? Mr. Abbott and Mr. van der Heyden consent to the inclusion in this announcement of the matters based on the information compiled by them, in the form and context in which it appears.