Quarterly Activities Report
Perth, July 31, 2012 AEST (ABN Newswire) - Western Manganese Limited (
ASX:WMN) are pleased to provide the quarterly activities report for the period ending June 2012.
Exploration Update - Manganese
During the quarter, Western Manganese Limited ("WMN" or "Company") continued its focus on securing additional tenements of strategic importance for the purposes of expanding the land area held. Several of the tenements that were studied previously are currently being discussed with tenement owners. Management feels that the current uncertainty in commodity prices and proposed amendments to Indonesian mining laws regarding mineral exports are creating opportunities to acquire quality assets under reasonable terms. The company has reanalyzed all previous opportunities and is currently exploring several potential acquisitions.
In addition to tenements previously studied, the team has become particularly interested in an artisanal mining area covering approximately 20,000 ha in West Timor. Although the area is not yet licensed as an exploration area, the local land owners have approached the Company to jointly apply for an exploration license. This joint cooperation between local communities and the company is a result of WMN's extensive Community Awareness and Socialization Programs. The Company is currently evaluating the best course of action to apply for the tenements.
Genesis Manganese Project - included on Clean and Clear List
WMN holds an option to acquire 51% of the Genesis tenement. The Company has continued its community relations campaign in Toli-Toli, Sulawesi where the Genesis Project is located.
Subsequent to the June 2012 quarter, the Company announced it had received confirmation of "Clean and Clear" status of its Genesis tenement from the Ministry of Energy and Mineral Resources of the Republic of Indonesia (MEMR).
The designation of "Clean and Clear", as defined under Law 4, year 2009, and PP no. 23, year 2010, provides assurance to WMN that the validity of the Company's Genesis tenement and production license has been scrutinized by MEMR, who have determined that the tenement and its respective license do not overlap with any other tenements or licenses.
The Genesis Project has attracted interest from other parties as it is an IUP production license listed as "Clean and Clear". There are only a limited number of manganese licenses in Indonesia listed as "Clean and Clear" by the MEMR. WMN is currently evaluating its plans regarding the Genesis Tenement.
Other Project Acquisition Opportunities - Coal
One of the objectives of Western Manganese Limited, as outlined in its December 2010 IPO Prospectus, is to also acquire interests or part thereof in nonmanganese projects. During the quarter, the Company has been actively looking at project acquisition opportunities in coal.
WMN management has identified that Indonesia's thermal coal industry, the largest sector in the Indonesian Mining Industry has changed significantly. The combination of lower coal prices and less consumption by China and India, and uncertainty regarding newly announced amendments to the Indonesian Mining Laws and regulations as well as proposed taxes has created confusion and eroded confidence amongst some of the tenement holders. WMN's management team, especially those that have joined the Company since the Board reshuffle, have extensive experience in the Indonesian Coal Industry. Management has concluded that the current market conditions described above have fostered a highly advantageous scenario for acquiring tenements. The current situation has created a "buyer's market" which the Company feels it is well positioned to take advantage of.
During the quarter, WMN was offered not less than 28 coal tenements for review. Of these 28 coal tenements, the Company has chosen to further review 11 tenements. These 11 opportunities range from greenfields tenements to currently producing mines with further exploration potential:
IUP 1 ------ 5,000Ha tenement, High Calorific Value (CV) coal in East Kalimantan
IUP 2 ------ 5,000Ha tenement, High CV coal in East Kalimantan
IUP 3 ------ 4,951Ha tenement, High CV coal in East Kalimantan
IUP 4 ------ 5,000Ha tenement, High CV coal in East Kalimantan
IUP 5 ------ 5,000Ha tenement, High CV coal in East Kalimantan
IUP 6 ------ 740Ha tenement, Mid CV coal in East Kalimantan
IUP 7 ------ 2,329Ha tenement, Mid CV coal in East Kalimantan
IUP 8 ------ 3,361Ha tenement, Mid CV coal in East Kalimantan
IUP 9 ------ 750Ha tenement, 80Ha exploitation, High CV coal in Sumatera
IUP 10 ----- 2,400Ha tenement, 100Ha exploitation, High CV coal in Sumatera
IUP 11 ----- 5,000Ha tenement, 100Ha exploitation, Mid CV coal in East Kalimantan
Several site visits are scheduled for the September 2012 quarter to evaluate these opportunities.
On behalf of the board of directors, we welcome new shareholders and appreciate existing shareholders' loyalty.
For further information please email - info@westernmanganese.com, or visit our website at http://www.westernmanganese.com
Contact
Western Manganese Limited
T: +61-8-9421-7777
WWW: www.westernmanganese.com
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