MURCHISON UNITED NL
ACN 009 087 852
ASX CODE: MUR, AIM CODE: MUU
Telephone: +618 9322 4071, Fax: +618 9322 4073
Quarterly Report
June 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 West Africa and Australia.
Highlights
Uranium Exploration - Mauritania
* Wide-ranging Cooperation Agreement signed with Areva NC ("Areva"), one of the world's largest
nuclear energy companies, to expedite uranium exploration in Mauritania, including the potential to form
a joint venture following identification of agreed JORC resource.
* Areva has acquired initial 5% stake in Murchison, raising A$2.7M, with further 10% stake to be
issued in return for access to extensive Mauritanian geological database and provision of technical
support.
* Meetings being held with Areva to plan further drilling aimed at delineating a substantial
uranium resource.
Uranium Exploration - Guinea
* Maiden core drilling programme at the Bohoduo Prospect completed, with assay samples despatched
for processing. Results will be released when available.
* Planning and preparatory works completed for 5,000m diamond drilling programme, scheduled to
commence as soon as practicable following the wet season, targeting an initial JORC code compliant
resource estimate for Firawa uranium prospect.
Copper Exploration - Australia
* Aditya Birla Minerals has announced commissioning of a scoping study including geological
review, processing and metallurgy and mine design. Results of the study are expected to be available
shortly.
Corporate
* Appointment of Lady Barbara Judge to Murchison board as Non-Executive Deputy Chairman. Lady
Judge is a US-trained lawyer and highly experienced international executive, and is currently chairman of
the UK Atomic Energy Authority.
Cooperation Agreement with Areva NC - Mauritania
As announced on 25 June 2008, Murchison has entered into a wide-ranging Cooperation Agreement with French-
based multinational industrial and nuclear energy company, Areva NC, in relation to its uranium tenements
in Mauritania.
The first stage of the agreement has been completed, with the recent issue of approximately 20 million
shares to Areva, representing a 5% stake in Murchison, at A$0.135 per share, providing additional funding
of around A$2.7 million.
Under the agreement, Areva will be issued shares equal to a further 10% stake in Murchison in return for
providing access to its extensive Mauritanian database developed from previous exploration undertaken by
Areva's corporate predecessors and for provision of technical services, equipment and personnel. This
information and support will be utilised by Murchison to expedite the exploration and development of its
uranium projects in Mauritania.
Murchison will convene an Extraordinary General Meeting as soon as practicable to obtain shareholder
approval for the share issue.
The aim of the initial 2-year exploration phase of the agreement is to identify a minimum JORC inferred
resource of 60 million pounds of calcrete-type uranium deposits or 80 million pounds for other types of
uranium deposits.
If the exploration phase is successful, Murchison and Areva may enter into a joint venture agreement on
commercial terms prevailing at the time based on internal and market valuations. Areva would be able to
increase its stake in the joint venture during the pre-feasibility phase with the opportunity to
eventually increase its interest to 100% at exploitation time on prevailing commercial terms.
Under the proposed joint venture arrangements, it is envisaged that Areva will conduct the pre-
feasibility and feasibility studies and become the operator of any future mining operation.
Republic of Mauritania, West Africa
During the March Quarter, Murchison received 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. 26 of the 38 holes tested returned intercepts calculated at greater than
1,000ppm eU3O8. Seven holes contained intercepts exceeding 5,000ppm eU3O8, with a maximum intercept of
1.55m at 18,280ppm eU3O8.
Fig.1 Bir En Nar drilling programme December 2007 (to view image, please open the following link in a new
window)
http://media3.marketwire.com/docs/munl0731fig1.pdf
Approximately 1,000 assay samples, each representing 1 metre of drilling, were collected for multi-
element analysis in Canada by ALS Chemex. Release of assay results is expected shortly.
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 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 using data logged at 5 cm sampling intervals (see Note at end of this report for
further details).
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.
Fig.2 Murchison United's exploration permits in Mauritania (to view image, please open the following link
in a new window)
http://media3.marketwire.com/docs/munl0731fig2.pdf
Under the cooperation agreement with Areva outlined above, a joint technical committee is to be formed.
Following analysis of recent drilling assays from Bir En Nar and the review of Areva's geological
database, a revised exploration programme will be developed for Mauritania. It is likely that initial
activities will focus on further drilling required to delineate a JORC Code compliant resource at Bir En
Nar, as well as identifying the most prospective targets for future drilling programmes.
Murchison's Mauritanian 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.3 Location of Murchison United's Guinea Projects (to view image, please open the following link in a
new window)
http://media3.marketwire.com/docs/munl0731fig3.pdf
The June quarter marked the commencement of initial drilling at Murchison's Bohoduo prospect. This
drilling programme, carried out by Amco Construction, comprised 15 holes of between 50m and 150m in
length for a total of approximately 1000m. Drilling has now finished, with assay samples forwarded to ALS
Chemex in Canada. Results will be released when available.
Fig.4 Bohoduo drilling programme May 2008 (to view image, please open the following link in a new window)
http://media3.marketwire.com/docs/munl0731fig4.pdf
Preparatory work at Firawa, including topography surveys, bulldozing and site preparations, were
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 as soon as practicable, following the wet season.
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.
Birla has commissioned a scoping study including geological review, processing and metallurgy and mine
design. It is envisaged that results of the scoping study will be available shortly.
Fig.5 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/munl0731fig5.pdf
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 18 July, Murchison has appointed Lady Barbara Judge to its board as a Non-Executive
Director and Deputy Chairman.
Lady Judge, a US-trained lawyer now based in London, has an exceptionally broad and successful
international career as a senior executive, chairman and non-executive director in both the private and
public sectors. She has been a regulator in both the US and the UK financial services industries, with
particular expertise in energy and corporate governance.
Current positions held by Lady Judge include Chairman of the UK Atomic Energy Authority, Deputy Chairman
of Friends' Provident plc (a FTSE 100 company) and Directorships with Massey Energy Company and Magna
International Inc.
The Board welcomes Lady Judge, and believes her wealth of relevant knowledge and experience will
compliment those of the existing directors and be of great benefit as the Company progresses its uranium
exploration projects in West Africa.
Mark Reilly
Managing Director
31 July 2008
Murchison's Nominated Advisor for the AIM market is RFC Corporate Finance Ltd.
Contact: Stuart Laing, Ph: +618 9480 2506
Note:
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.
Downhole 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 downhole gamma ray logging results and should be regarded as
approximations only.
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 30 JUNE 2008
Current quarter Year to date
Cash flows related to operating activities A$'000 (12 months)
A$'000
1.1 Receipts from product sales and related debtors - -
1.2 Payments for (a) exploration and evaluation (509) (1,660)
(b) development - -
(c) production - -
(d) administration (404) (1,487)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature
received 75 340
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 (838) (2,807)
Cash flows related to investing activities
1.8 Payment for purchases of:
(a) prospects - -
(b) equity investments - -
(c) other fixed assets (39) (118)
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 (39) (118)
1.13 Total operating and investing cash flows (877) (2,925)
(carried forward)
Consolidated statement of cash flows
1.13 Total operating and investing cash flows (877) (2,925)
(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 (877) (203)
1.20 Cash at beginning of quarter/year to date 4,537 3,863
1.21 Exchange rate adjustments to item 1.20
1.22 Cash at end of quarter 3,660 3,660
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 176
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 472
4.2 Development 0
Total 472
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 3,660 4,537
5.2 Deposits at call - -
5.3 Bank overdraft - -
5.4 Other (provide details) - -
Total: cash at end of quarter (item 1.22) 3,660 4,537
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
tenements acquired
or increased
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: 31 July 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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