[nrj]

June 21, 2005
Traders Nation Live

KURT SCHEMERS: Welcome to the Traders Phone Booth. Once again we have an original broadcast interview. This time with Wayne Beach. He is the Chairman of Northwestern Mineral Ventures Inc. OCTBB Symbol NWTMF. Wayne, welcome to Traders Nation.

WAYNE BEACH: Thank you.

SCHEMERS: How are you today?

BEACH: Not so bad, how about you?

SCHEMERS: Not too bad, not too bad at all. Hey Wayne, listen. Let’s go right into the first question. Can you give us a brief overview of Northwestern Mineral’s business? I mean we’re really looking at a hot sector right now, aren’t we?

BEACH: Yes, the mining sector is doing well now. Generally, all commodities are doing well. And obviously, driven by events in Asia, such as India and China, these economies are growing so rapidly and they need commodities. Generally, as well, we are particularly interested in uranium, and of course that is an international phenomenon that is not limited to China and India. France, for example, generates 85% of its electricity through nuclear power, and the United States, surprisingly, generates in excess of 20% through nuclear power, so there is huge demand for uranium and it's growing.

SCHEMERS: Now, do you mine uranium? What minerals are we looking at that you guys mine?

BEACH: Our focus at the moment is on uranium. And we’re active in acquiring concessions in a west African country called Niger. Niger is the fourth largest producer of uranium in the world, and [we are awaiting government approval for two]...very, very large concessions there in the range of 4,000 square kilometers, which we believe have a lot of potential for uranium. [We expect that these exploration concessions will be granted to the company in the near future]...but we are an exploration company so we’re not actually producing uranium.

SCHEMERS: I see, so that is one of your [potential] acquisitions. Do you have any other that you are acquiring or looking to acquire?

BEACH: Well, we also have an interesting uranium property in northern Canada, in the Northwest Territories, and we have 50% interest there with a company called Fronteer Development Group Inc. That’s a project where we had a diamond drilling program last year, where we made a uranium discovery, and that’s something we will be following up on. We also, historically, we’ve had a property for a period of time now, in Mexico, a silver-gold project there, and that’s a project which could be reasonably close to production. We’re looking to [commence preparations for underground mine development]...on that project in the fall.

SCHEMERS: When you say go underground, exactly what does that mean?

BEACH: Well, typically, when you think of mining, a lot of people would think of a great big open pit – scooping up material from surface. But most gold and silver mines, historically, have been underground mines. So what you do is you put down a shaft – a hole in the ground. In our case, in simplified terms, we would be tunneling into the side of a mountain. In this particular case, it is a much easier thing than going down vertically. We would be looking to do that in the fall. And that project involves high-grade silver and gold – a traditional kind of Mexican-type deposit. It is in an area which you wouldn’t say is remote, but accessibility is difficult because the terrain has been difficult. But in the last couple of decades the roads have improved dramatically. So it’s a project which was neglected in the past.

SCHEMERS: Well, that would make it easier for you, wouldn’t it? To mine those areas?

BEACH: Yes, much easier.

SCHEMERS: Now, is it one of those things where you find the vein and you follow the vein?

BEACH: That’s the nature of the project in Mexico and I can tell you that’s absolutely right. It’s very typically, very high grade. We’re about 40 kilometers from a major mine which has been operated there for almost century and it's owned now by a Canadian company – well, an international company, listed on the New York Stock Exchange, called Goldcorp. They are producing the equivalent of 200,000 ounces a year, which is quite a good sized gold mine.

SCHEMERS: Sure. Okay. Would if be fair to say that Northwestern Mineral is a worldwide mineral exploration company?

BEACH: Yes, our plan is really to focus internationally. For example, we are looking now all over Africa. Africa is a huge continent, and there are others besides Niger, where ...[we will be identifying potential acquisitions]. There is very little uranium production; there is a bit in South Africa, but there is every reason to believe there would be other major opportunities. Africa, of course, has improved as a destination for mining companies; governments are stable now, and infrastructure has improved dramatically, and it's generally a better place to do business, and so we’re looking elsewhere in Africa. We’re [also] interested in Mongolia, which people would think is a very remote and difficult country. Mongolia is a huge country, but only has 2.5 million people. They are highly educated people and it’s an excellent place to do business. So we're interested in looking there. We’re interested in Australia where, politically, uranium mining has been difficult in the past, but we’re anticipating breakthroughs there. So yes, it is definitely international.

SCHEMERS: Do you feel that some of these countries – you said that their governments are a little more stable – do that you feel they are more receptive now to companies that want to mine some of the properties in these countries?

BEACH: Very much so. There are two countries of note in western Africa. One is Ghana, which is highly advanced, the other is Mali, which is less advanced. But mining is incredibly important to these countries, and the other countries around them can see how much mining has done for these countries. And of course, we’re now moving away from the bad old-days when people were concerned about pollution problems. Mines are really not great sources of pollution. There are not environmental problems anymore. The technology has improved so much. So, other countries in Africa see these developments in countries like Ghana and Mali and say “Hey look, we should be doing this too.” The Africans have made very, very good geologists and engineers, and some of the other companies we have been involved in over the years we’ve been able to operate in these countries with very few expatriates...

SCHEMERS: ...Now, generally, I talk about competitors because everyone has a competitor. But your industry has got to be a little bit different because of the number of potential claims of the mining sites largely overshadow the number of companies to explore them?

BEACH: I think that’s true. Internationally – particularly in Canada and Australia – mines have generally been found by small companies. You would think that a large company like Inco or Phelps Dodge in the United States would be an ideal company to go out and explore and look for mines. But for whatever reason, historically they haven’t been. They take a very decentralized approach – using small mining companies like Northwestern, where decision making is made on the ground and you have first rate young geologists who are very hungry to find things. That’s the way that mines have been found.

SCHEMERS: I see. Let’s talk about growth. What about financing growth: to finance your growth and expand your operations. How are you looking as far as that’s concerned?

BEACH: Well, we’re perfectly well financed at the moment for what we are doing. But, we’re at a stage where we’re anticipating, in the near future, the grant of our concessions will be completed in West Africa in Niger. We are deep in the process of having the things granted. [Once the concessions are granted]...we’ll then undertake quite a large [exploration] program. So we will be obliged to seek further financing, and of course we have spoken to investment dealers in Canada and the United States and we’re confident that we'll have no problem in that regard.

KURT SCHEMERS: Once again, Wayne Beach, Northwestern Mineral Ventures Inc., OTCBB Symbol NWTMF. Good information, check it out today. Northwestern Minerals.