MURCHISON UNITED NL
ACN 009 087 852
ASX CODE: MUR, AIM CODE: MUU
Telephone: +618 9322 4071, Fax: +618 9322 4073
Quarterly Report
March 2008
Murchison United (ASX:MUR; AIM:MUU) is a uranium and copper explorer listed on the ASX and AIM, with a
portfolio of emerging projects in Australia and West Africa.
Highlights
Uranium Exploration - Mauritania
* High-grade uranium intersections indicated from downhole radiometric logging results from RC
drilling at the Bir En Nar uranium prospect (Zednes Region, Mauritania).
* Best intercepts included:
Drill Hole Section Intersection Thickness eU3O8
RC From (m) (m) (ppm)
BNR04 6.25 1.00 7,180
BNR08 70.80 2.35 11,250
BNR11 85.35 1.55 18,280
BNR11 114.20 5.35 9,310
BNR41 28.25 0.35 8,140
* Assay results expected to be announced shortly.
* Regional office established in Nouakchott and a local geologist appointed to manage detailed
follow up of anomalies scheduled for 2008.
* Four additional "Group 4" Uranium exploration permits granted in Mauritania, increasing
Murchison's uranium exploration portfolio in West Africa by 4,986km2 to a total of 16,749km2.
Uranium Exploration - Guinea
* Preparations completed for core drilling at the Bohoduo Prospect, expected to commence mid-May,
and for reconnaissance exploration at the Sesse uranium prospect during Q2 2008.
* Planning completed for 5,000m diamond drilling programme, scheduled to commence in September
following the wet season, targeting an initial JORC code compliant resource estimate for Firawa uranium
prospect.
* Regional office established in Kankan and a local geologist appointed to manage extensive
drilling programmes scheduled for 2008.
Copper Exploration - Australia
* Drilling at Maroochydore Copper Project, Western Australia (JV with project operator Aditya
Birla Minerals), scheduled to recommence in Q2 2008 depending on drill rig availability.
* Aditya Birla Minerals has announced commissioning of a scoping study including geological
review, processing and metallurgy and mine design.
* Subject to positive scoping study, pre-feasibility work will commence in Q2 2008.
Summary
During the Quarter, Murchison continued to progress exploration activities at its portfolio of uranium
projects in Guinea and Mauritania, West Africa, and detailed plans are now in place for an aggressive
exploration campaign throughout the 2008 field season.
Fig.1 Drilling in Mauritania December 2007 (to view image, please open the following link in a new
window): http://media3.marketwire.com/docs/MURfig01.pdf.
Republic of Mauritania, West Africa
During the March Quarter, Murchison received very positive downhole radiometric logging results from
drilling undertaken during December 2007 at its key Exploration Licences at the Bir En Nar prospect,
located in the Zednes region of Mauritania. This was the Company's second uranium drilling programme in
West Africa following its successful drilling campaign at its Firawa uranium prospect in Guinea in May
2007.
Full results of the downhole radiometric logging and details of the drill holes are available in the
Company's announcement to the ASX on 26 March 2008, however a summary of the best results includes:
Drill Hole Section Intersection Thickness eU3O8
RC From (m) (m) (ppm)
BNR02 58.30 0.70 5,750
BNR04 6.25 1.00 7,180
BNR08 70.80 2.35 11,250
BNR08 87.45 1.55 5,060
BNR11 85.35 1.55 18,280
BNR11 114.20 5.35 9,310
BNR14 33.35 2.90 6,100
BNR21 46.05 0.95 5,500
BNR41 26.15 0.30 5,100
BNR41 28.25 0.35 8,140
The Bir En Nar prospect is a 900 metre long radioactive zone extending 50-70 metres in width and
following a tectonic structure in a NW-SE direction. A smaller parallel zone occurs a few hundred metres
to the SW. The prospect was covered by RC drilling with SW-NE traverses at 70 metre spacings.
The drilling programme at Bir En Nar was completed on 31 December 2007. The drilling - which was carried
out by AMCO Construction under the supervision of Murchison's Technical Director, Bosse Gustafsson -
comprised 41 Reverse Circulation (RC) drill holes of between 50 and 150 metres length for a total of
4,006 metres of drilling.
The downhole gamma ray logging, calculation of equivalent uranium grades, and compositing of mineralised
intervals was conducted by consultants Poseidon Geophysics (Pty) Ltd. The logging programme was
undertaken with an Auslog Logging System with the estimated grades reported based on calculations by
Poseidon Geophysics using data logged at 5 cm sampling intervals (see Note at end of this report for
further details).
Fig.2 Bir En Nar drilling programme December 2007 (to view image, please open the following link in a new
window): http://media3.marketwire.com/docs/MURfig02.pdf.
Poseidon Geophysics carried out radiometric logging of all but three holes (which were blocked).
Approximately 1,000 assay samples, each representing 1 metre of drilling, were collected for multi-
element analysis in Canada by ALS Chemex. Assay results will be released as they become available.
The drilling focused on one of the Company's southernmost licences, at the Bir En Nar Prospect in Zednes
Region, where episyenite samples collected during previous field reconnaissance visits have returned
assays of up to 9,500ppm U.
The Company is also establishing a permanent office in the Mauritanian capital, Nouakchott, and has
engaged a local geologist who will provide assistance to the Company's Technical Director, including
undertaking detailed follow up of anomalies scheduled for 2008.
Murchison was also pleased to receive confirmation during this Quarter that four additional "Group 4"
uranium exploration licences have been granted to the Company. Murchison now has ten "Group 4" uranium
exploration licences in Mauritania with a total ground position of 13,186km2. These additional permits
are also situated in northern Mauritania, in the vicinity of the six permits already held by the Company.
Two of the additional permits were applied for following a field visit to the area by Technical Director,
Bosse Gustafsson, in October 2006, during which calcrete uranium occurrences were identified while
investigating radiometric anomalies. Another two applications were lodged last year, both with similar
tectonic features to the nearby Bir En Nar uranium occurrence.
Fig.3 Murchison United's exploration permits in Mauritania (new permits shown in red) (to view image,
please open the following link in a new window): http://media3.marketwire.com/docs/MURfig03.pdf.
The permit areas are located in the north of the country near the town of Bir Moghrein and at Bir En Nar
in Zednes region. These were originally identified by the Company's Technical Director, Mr Bosse
Gustafsson, from a study commissioned by the World Bank and further refined from aeroradiometric data
highlighting the region's prospectivity for uranium occurrences.
Republic of Guinea, West Africa
Murchison has three uranium exploration projects in Guinea. The Company's maiden drilling programme,
conducted at its Firawa prospect, was completed in May 2007 and comprised 29 RC drill holes for a total
of 1,809 metres of drilling. Results from this drill programme confirmed the presence of uranium
mineralisation over a highly prospective 2 km section of a previously identified 5 km long uranium
anomaly.
Fig.4 Location of Murchison United's Guinea Projects (to view image, please open the following link in a
new window): http://media3.marketwire.com/docs/MURfig04.pdf.
The Company has now completed preparations including topography surveys and bulldozing for a drilling
programme commencing at its Bohoduo prospect in the middle of May 2008 and expected to take about a month
to complete, as well as for further reconnaissance work at its Sesse project. This drilling programme at
Bohoduo will comprise 14 holes of between 50m and 150m in length for a total of 950m, with a further 6
holes identified for drilling if warranted. Drilling will be carried out by Amco Construction, with assay
samples to be forwarded to ALS Chemex in Canada.
Preparatory work at Firawa including topography surveys, bulldozing and site preparations will be
undertaken during May 2008 in readiness for a substantial 5,000 metre diamond drill programme to follow
up the results of the initial successful RC drilling programme. The diamond drilling programme is
scheduled to commence in September 2008, following the wet season.
Fig.5 Location of Bohoduo drilling programme in Guinea (to view image, please open the following link in
a new window): http://media3.marketwire.com/docs/MURfig05.pdf.
Fig.6 Bohoduo drilling programme May 2008 (to view image, please open the following link in a new window):
http://media3.marketwire.com/docs/MURfig06.pdf.
To support this significant work programme in Guinea, Murchison has appointed a geologist who will be
based in Guinea working out of the Company's recently established office at the regional centre of
Kankan, from which these exploration programmes will be managed.
Maroochydore Copper Project, Western Australia
The Maroochydore Copper project is a 50:50 Joint Venture between Murchison and its partner Aditya Birla
Minerals Limited ("Birla"), which is also the project operator. The project is strategically located in
Western Australia's Pilbara region, approximately 100km southeast of Aditya Birla's Nifty Copper Mine
near Telfer.
Maroochydore has a JORC compliant Indicated and Inferred Mineral Resource of 51 million tonnes at a grade
of 1% copper and 0.04% cobalt for 0.51 million tonnes of contained copper and 20,000 tonnes of contained
cobalt (at a 0.5% Cu cut-off). The Company's net attributable interest in this Mineral Resource is 25.5Mt
at 1% copper and 0.04% cobalt for 0.25Mt contained copper and 10,000 tonnes contained cobalt.
Fig.7 Location of Murchison United's Copper/Cobalt Projects (to view image, please open the following
link in a new window): http://media3.marketwire.com/docs/MURfig07.pdf.
Aditya Birla Minerals has commissioned a scoping study including geological review, processing and
metallurgy and mine design. Subject to positive results from this scoping study, pre-feasibility work is
scheduled to commence during Q2 2008.
Assay results from the first seven holes of a planned 13-hole RC drilling programme (totalling 1,500m)
were announced in October 2007. Good copper intercepts were reported from all seven holes, including 7m @
2.45% Cu and 26m @ 1.44% Cu. All drilling is being carried out within the existing boundary of the JORC
resource. The results of this in-fill drilling demonstrate the continuity of mineralisation within the
small area drilled, with copper grades generally in line with expectations.
Due to the limited availability of the drill rig, only the first seven vertical holes were completed.
Drilling of the remaining six holes is expected during Q2 2008. Due to problems encountered with water
inflow, Birla plans to use a larger RC drill rig to complete this programme.
A six-hole diamond drilling programme has also been planned for further in-fill drilling and to obtain
samples for metallurgical test work. The timing of this programme is dependent upon rig availability.
The Company is currently meeting its commitments pursuant to the joint venture agreement.
Millenium Leases, Cloncurry - Queensland Australia.
The "Millenium" mining leases (ML's 3512, 2761, 2762, 7506 and 7507) are located some 35 kilometres north-
west of Cloncurry in north-west Queensland, Australia. The five adjacent leases include the historical
"Federal" copper mine and cover an area approximately 3.5 kilometres long and 500 metres wide extending
in a northerly direction.
The Company has prepared a drilling programme for the Millenium leases, although this project has a lower
priority given the Company's focus on its uranium exploration interests in West Africa.
Corporate
As announced on 9 April, Murchison has appointed Fairfax I.S. PLC as its Nominated Broker to the AIM
market of the London Stock Exchange in a move designed to further enhance the Company's exposure in the
UK.
Other
Consistent with its core focus on energy assets, Murchison continues to consider other energy-related
resource opportunities, both in Australia and overseas. Discussions to date are preliminary and non-
binding. If and when any proposals become binding, relevant announcements will be released.
Mark Reilly
Managing Director
30 April 2008
Murchison's Nominated Advisor for the AIM market is RFC Corporate Finance Ltd.
Contact: Stuart Laing, Ph: +618 9480 2506
The information in this report that relates to exploration results in West Africa is based on information
compiled by Mr. Bosse Gustafsson, who is a member of the European Federation of Geologists a Recognised
Overseas Professional Organisation ("ROPO"). Mr Bosse Gustafsson is a full time Technical Director of
Murchison United NL and is responsible for exploration activities in Mauritania and Guinea. Mr Gustafsson
has sufficient experience, which is relevant to the style of mineralisation and the type of deposit under
consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in
the 2004 Edition of the 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserve'. Mr Gustafsson consents to the inclusion in this report of the matters based on their
information in the form and context in which it appears.
Note:
Down hole gamma logging/probing of drill holes provides a powerful tool for uranium companies to explore
for, and evaluate, uranium deposits. Such a method measures the natural gamma rays emitted from material
surrounding a drill hole out to around 0.5 metre from its centre - the gamma probe is therefore capable
of sampling a much larger volume than that which would normally be recovered from a core or RC hole.
These measurements are used to estimate uranium concentrations with the commonly accepted initial
assumption being that the uranium is in (secular) equilibrium with its daughter products (or radio-
nuclides) which are the principal gamma emitters. If uranium is not in equilibrium (viz. in
disequilibrium) - as a result of the redistribution (depletion or enhancement) of uranium and/or its
daughter products - then the true uranium concentration in the holes logged using the gamma probe will be
higher or lower than those reported in the announcement.
Total count gamma logging does not account for energy derived from thorium and potassium but is
calibrated on the uranium band and factor applied to account for the average effect of thorium and
potassium and thus the result is expressed as an equivalent value or ppm eU308. The logging programme was
undertaken by Poseidon Geophysics (Pty) Ltd utilising an Auslog Logging System using instruments
calibrated at Pelindaba, South Africa, an IAEA accepted and approved standard facility. Data was
converted from raw counts per second of natural gamma rays to eU3O8 using the calibration constant
obtained from measurements made at the Pelindaba calibration borehole. Poseidon Geophysics carried out
regular checks to validate the accuracy of probe data using a test hole, BNR14, located on site. Uranium
mineralisation grades through this report annotated with a sub-prefix 'e' have been reported as uranium
equivalent grades derived from down-hole gamma ray logging results and should be regarded as
approximations only.
The information on Mineral Resources for the Maroochydore project has been reproduced from the public
reporting on the project's Mineral Resource's by the project operator, Aditya Birla Minerals Ltd. This
reported Mineral Resource was signed off for Aditya Birla Minerals Ltd by Mr Ian Glacken of Snowden
Mining Industry Consultants.
The information in this announcement that relates to exploration results at Maroochydore Copper JV
Project is based on information supplied by the project operator, Aditya Birla Minerals Ltd (ASX: ABY)
through their Group Exploration Manager, Steve Oxenburgh MAusIMM, who is a full time employee of ABML and
is a Competent Person as defined in the 2004 Edition of the 'Australian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserve'. Mr Oxenburgh consents to the inclusion in this report of the
matters based on their information in the form and context in which it appears.
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
MURCHISON UNITED NL
ABN Quarter ended ("current quarter")
59 009 087 852 31 MARCH 2008
Current quarter Year to date
Cash flows related to operating activities A$'000 (9 months)
A$'000
1.1 Receipts from product sales and related debtors - -
1.2 Payments for (a) exploration and evaluation (184) (1,151)
(b) development - -
(c) production - -
(d) administration (271) (1,083)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature
received 81 265
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Other (provide details if material) - -
Net Operating Cash Flows (374) (1,969)
Cash flows related to investing activities
1.8 Payment for purchases of:
(a) prospects - -
(b) equity investments - -
(c) other fixed assets (42) (79)
1.9 Proceeds from sale of:
(a) prospects - -
(b) equity investments - -
(c) other fixed assets - -
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - -
1.12 Other (provide details if material) - -
Net investing cash flows (42) (79)
1.13 Total operating and investing cash flows (416) (2,048)
(carried forward)
Consolidated statement of cash flows
1.13 Total operating and investing cash flows (416) (2,048)
(brought forward)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. - 2,722
1.15 Proceeds from sale of forfeited shares - -
1.16 Proceeds from borrowings - -
1.17 Repayment of borrowings - -
1.18 Dividends paid - -
1.19 Other - Settlement of Guarantee
Net financing cash flows - 2,722
Net increase (decrease) in cash held (416) 674
1.20 Cash at beginning of quarter/year to date 4,953 3,863
1.21 Exchange rate adjustments to item 1.20
1.22 Cash at end of quarter 4,537 4,537
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the
related entities
Current quarter
$A'000
Aggregate amount of payments to the parties included in item 90
1.2
Aggregate amount of loans to the parties included in item 1.10 0
Explanation necessary for an understanding of the transactions
Salaries and rental of office premises
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on
consolidated assets and liabilities but did not involve cash flows
Nil
2.2 Details of outlays made by other entities to establish or increase their share in
projects
in which the reporting entity has an interest
Nil
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used
$A'000 $A'000
3.1 Loan facilities Nil N/A
3.2 Credit standby arrangements Nil N/A
Estimated cash outflows for next quarter
$A'000
4.1 Exploration and evaluation 392
4.2 Development 0
Total 392
Reconciliation of cash
Reconciliation of cash at the end of the quarter Current quarter Previous quarter
(as shown in the consolidated statement of cash $A'000 $A'000
flows) to the related items in the accounts is as
follows.
5.1 Cash on hand and at bank 4,537 4,953
5.2 Deposits at call - -
5.3 Bank overdraft - -
5.4 Other (provide details) - -
Total: cash at end of quarter (item 1.22) 4,537 4,953
Changes in interests in mining tenements
Tenement Nature of interest Interest at Interest at
reference (note (2)) beginning of end of
quarter quarter
6.1 Interests in mining
tenements
relinquished,
reduced or lapsed
6.2 Interests in mining 411 Uranium exploration 0% 100%
tenements acquired permit covering 776
or increased km2 in the Republic of
Mauritania
486 Uranium exploration 0% 100%
permit covering 1,440
km2 in the Republic of
Mauritania
487 Uranium exploration 0% 100%
permit covering 1,360
km2 in the Republic of
Mauritania
488 Uranium exploration 0% 100%
permit covering 1,410
km2 in the Republic of
Mauritania
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and
dates.
Total number Number quoted Issue price Amount
per security paid up
(see note 3) per
(cents) security
(see note
3) (cents)
7.1 Preference +securities
(description)
7.2 Changes during quarter
(a) Increases through
issues
(b) Decreases through
returns of capital, buy-
backs, redemptions
7.3 +Ordinary securities 380,182,617 380,182,617
2,250,000 - 25 1
7.4 Changes during quarter
(a) Increases through
issues
Issue for cash
(b) Decreases through
returns of capital, buy-
backs
7.5 +Convertible debt
securities (description)
7.6 Changes during quarter
(a) Increases through
issues
(b) Decreases through
securities matured,
converted
7.7 Options (description and Exercise Expiry
conversion factor) price date
(cents)
7,500,000 - 5.5 19/5/10
2,500,000 - 5.5 30/6/10
2,000,000 - 5.5 29/11/10
6,000,000 - 7.5 3/05/10
5,000,000 - 11.0 21/12/12
7.8 Issued during quarter
7.9 Exercised during quarter
7.10 Expired during quarter
7.11 Debentures
(totals only)
7.12 Unsecured notes
(totals only)
Compliance statement
1 This statement has been prepared under accounting policies, which comply with accounting standards
as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
Sign here: ............................................................ Date: 30 April
2008.
Managing Director
Print name: .............Mark Reilly......................
Notes
1 The quarterly report provides a basis for informing the market how the entity's activities have
been financed for the past quarter and the effect on its cash position. An entity wanting to
disclose additional information is encouraged to do so, in a note or notes attached to this
report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining
tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in
a joint venture agreement and there are conditions precedent, which will change its percentage
interest in a mining tenement, it should disclose the change of percentage interest and conditions
precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and
7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB
1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards
for foreign entities. If the standards used do not address a topic, the Australian standard on
that topic (if any) must be complied with.
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