MURCHISON UNITED NL
ACN 009 087 852
ASX CODE: MUR, AIM CODE: MUU,
Telephone: +618 9322 4071, Fax: +618 9322 4073
Quarterly Report
September 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
* French-based multinational industrial and nuclear energy group Areva has acquired an initial 5%
stake in Murchison under the previously announced Cooperation Agreement, raising A$2.7M.
* A further 10% stake to be issued to Areva in return for access to its extensive Mauritanian
geological database and the provision of technical support.
* Work has been undertaken with Areva to integrate geological data from both companies and develop
plans for further drilling aimed at delineating a substantial uranium resource.
Uranium Exploration - Guinea
* Maiden core drilling programme completed at the Bohoduo Prospect, with assay samples despatched
for processing. Results will be released when available.
* 4,000m diamond drilling programme currently underway targeting A JORC code compliant resource
estimate for Firawa uranium prospect.
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.
* The Company recently announced that it will be seeking shareholder approval at its forthcoming
Annual General Meeting to change its name to Forte Energy NL.
Cooperation Agreement with Areva NC - Mauritania
As announced on 25 June 2008, Murchison has entered into a wide-ranging Cooperation Agreement with the
French-based multinational industrial and nuclear energy company, Areva NC, in relation to its uranium
tenements in Mauritania.
The first stage of the agreement was completed in July, with the issue of approximately 20 million shares
at A$0.135 per share to Areva, representing a 5% stake in Murchison, providing additional funding of
around A$2.7 million.
Shareholder approval will be sought at the forthcoming Annual General Meeting, for Areva to be issued
shares under the agreement 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.
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 September Quarter, Murchison's Technical Director, Mr. Bosse Gustafsson, has been working with
representatives from Areva to integrate the geological databases held by both companies in order to
develop and refine plans for future drilling programmes, including agreeing a target ranking.
The next drilling programme is likely to focus on the Bir En Nar prospect in Mauritania to follow up the
maiden drilling programme carried out in December 2007. Down-hole radiometric logging results from that
programme included seven holes containing intercepts exceeding 5,000ppm eU3O8, with a maximum intercept
of 1.55m at 18,280ppm eU3O8.
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 intervals.
Fig.1 Murchison United's exploration permits in Mauritania (to view image, please open the following
link in a new window)
http://media3.marketwire.com/docs/murchfig1.jpg
Under the cooperation agreement with Areva, 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. In addition,
detailed geophysical and radiometric studies will be undertaken.
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.2 Location of Murchison United's Guinea Projects (to view image, please open the following link in
a new window)
http://media3.marketwire.com/docs/murchfig2.jpg
A 4,000m diamond core drilling programme recently commenced for the second drilling campaign at Firawa.
Comprising approximately 50 holes of up to 200m in length, the programme is predominantly infill drilling
aimed at enabling an initial JORC code compliant uranium resource to be delineated.
Fig.3 Firawa drilling programme, October 2008 (to view image, please open the following link in a new
window)
http://media3.marketwire.com/docs/murchfig3.jpg
The Company is awaiting assay results from the initial drilling programme completed in June this year 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.
Fig.4 Bohoduo drilling programme May 2008 (to view image, please open the following link in a new
window)
http://media3.marketwire.com/docs/murchfig4.jpg
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.
During August, Birla announced the results of its Scoping Study for the Maroochydore project. While the
Scoping Study resulted in a reduction in the JORC Code compliant resource for the Maroochydore Project
and concluded that the Project is unlikely to support a financially viable mining operation in its
current form, it did also highlight several areas requiring additional work.
Encouraging outcomes in these areas, including metallurgy, resource size, capital costs and synergies
with the nearby Nifty Copper Mine, also owned by Aditya Birla Minerals, would have a positive impact on
project economics.
The Maroochydore resource estimate was re calculated in the light of a thorough technical review. The
updated resource figures are:
Tonnes (Mt) Cu% Co%
Measured - - -
Indicated 36.7 0.8 0.04
Inferred 4.5 0.7 0.04
Total 41.2 0.8 0.04
Table 1: Maroochydore resource estimate 2008 (100% basis), calculated at a 0.5% copper cut-off.
The net effect of the new resource estimation is a reduction in both tonnes and grade (see Table 2). The
single reason for the change in metal content is a different estimation technique was used. The
estimation technique used by previous operators was not considered to be appropriate for the style of
mineralisation and has been replaced with a Multiple Indicator Kriging model. Resource estimation was
carried out by ABML in house technical staff and audited by the internationally recognised Snowden Mining
Industry Consultants.
While Murchison continues to work with Aditya Birla Minerals to advance the Maroochydore Project, the
Company remains focussed primarily on the exploration and development of its portfolio of uranium
projects in West Africa as the basis for development of a substantial long-term uranium business.
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/murchfig5.jpg
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
On 18 July 2008, Lady Barbara Judge was appointed as a Non-Executive Director and Deputy Chairman of the
Company.
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.
In addition to being an international executive, Lady Judge is Chairman of the United Kingdom Atomic
Energy Authority, Britain's premier nuclear body.
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.
On 23 October, the Company announced that it will be seeking shareholder approval at its forthcoming
Annual General Meeting to change its name to Forte Energy NL. The Annual General Meeting is to be held in
Perth, Western Australia, on 25 November 2008.
The name change decision reflects the work of the past 18 months to establish Murchison United as an
emerging West African uranium explorer and more accurately reflects the Company's diversified
international asset base.
Mark Reilly
Managing Director
31 October 2008
RFC Corporate Finance - Nomad
Stuart Laing Tel: +618 9480 2506
Fairfax I.S. PLC - UK Broker
Ewan Leggat / Laura Littley Tel: +44 207 598 5368
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 September 2008
Current quarter Year to date
Cash flows related to operating activities A$'000 (3 months)
A$'000
1.1 Receipts from product sales and related debtors - -
1.2 Payments for (a) exploration and evaluation (674) (674)
(b) development - -
(c) production - -
(d) administration (536) (536)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature
received 36 36
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 (1,174) (1,174)
Cash flows related to investing activities
1.8 Payment for purchases of:
(a) prospects - -
(b) equity investments - -
(c) other fixed assets (4) (4)
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 (4) (4)
1.13 Total operating and investing cash flows (1,178) (1,178)
(carried forward)
Consolidated statement of cash flows
1.13 Total operating and investing cash flows (1,178) (1,178)
(brought forward)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. 2,699 2,699
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 2,699 2,699
Net increase (decrease) in cash held 1,521 1,521
1.20 Cash at beginning of quarter/year to date 3,660 3,660
1.21 Exchange rate adjustments to item 1.20
1.22 Cash at end of quarter 5,181 5,181
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 178
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 875
4.2 Development 0
Total 875
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 481 3,660
5.2 Deposits at call 4,700 -
5.3 Bank overdraft - -
5.4 Other (provide details) - -
Total: cash at end of quarter (item 1.22) 5,181 3,660
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 400,192,228 400,192,228
2,250,000 - 25 1
7.4 Changes during quarter
(a) Increases through
issues
Issue for cash 20,009,611 20,009,611 $0.135 $0.135
(b) Decreases through
returns of capital, buy-
backs
7.5 +Convertible debt
securities (description)
7.6 Changes during quarter 20,009,611 20,009,611 $0.135 $0.135
(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 October 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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