western uranium float to cash in on boom

Western Uranium float to cash in on boom
September 25, 2006 - 4:34PM

Investors' new-found enthusiasm for uranium mining ventures will again be on show, when Perth-based explorer Western Uranium Ltd floats on the stock exchange after a successful $3 million share sale.

With booming worldwide demand for uranium, and the federal government's increasing focus on the mineral's export potential, the Western Uranium offer of 15 million shares at 20 cents each was oversubscribed.

The new kid on the mining block was set up to explore and exploit the 60.1 square kilometre Coppermine Bore Project in Western Australia's north, in a joint venture with Prairie Downs Metals Ltd.

Western Uranium has the right to earn a 50 per cent interest in Coppermine Bore through the expenditure of $1 million on the project and a further 25 per cent interest after spending another $2 million.

Speaking on the eve of the float, Western Uranium executive director Mark Hansen said the company had identified 15 prospective drill targets at Coppermine Bore, which will be explored in the wake of its listing.

Mr Hansen said airborne surveys and rock chip samples taken at Coppermine Bore indicated a "significant uranium mineralising event" at the site - going so far as to compare the samples to those in existence at the Olympic Dam site in South Australia."

"Rock chip samples collected by various companies during the last three decades at Coppermine Bore have displayed a remarkable correlation with the suite of elements at the world's largest uranium deposit, Olympic Dam, which demonstrates the potential of the uranium project," Mr Hansen said.

"Australia is in a strong position to capitalise on the expected growth in demand for uranium and Western Uranium is keen to play its part through its exploration for uranium at Coppermine Bore."

Following the listing, Western Uranium will commence a two-year, $1.35 million exploration program at Coppermine Bore, which will include drilling, geological mapping, geochemical sampling and geophysical surveys.

Further on the horizon, Mr Hansen flagged BHP Billiton Ltd other uranium interests around the country and around the world.

"Western Uranium will remain focused on the exploration of uranium at the Coppermine Bore and will also seek to identify, evaluate and acquire further uranium interests in Australia and overseas," he said.