Appendix 5B
Mining exploration entity quarterly report
________________________________________________________________________________________
MURCHISON UNITED NL ACN 009 087 852
ASX CODE: MUR, AIM CODE: MUU, Telephone: +618 9322 4071, Fax: +618 9322 4073
MURCHISON UNITED NL
ACN 009 087 852
ASX CODE: MUR, AIM CODE: MUU
Telephone: +618 9322 4071, Fax: +618 9322 4073
Quarterly Report
December 2007
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
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Uranium Exploration - Mauritania
* Anomalous radioactivity observed in 35 out of 41 holes drilled at Bir En Nar uranium prospect
(Zednes Region) following completion of 4,006m RC drilling program.
* Downhole radiometric logging completed, with results imminent.
* Assay results awaited with samples currently being analysed in Canada - Previous grab samples of
up to 9,500ppm U.
* Counts per second (c/s) measured on one-metre drill chips were up to 30,000 on scintillometer GF
instrument SGR.
Uranium Exploration - Guinea
* Planning completed for drilling at the Bohoduo Prospect and reconnaissance exploration at the
Sesse uranium prospect during Q2 2008.
* Expanded 5,000m diamond drilling program scheduled to commence following the wet season, in
September targeting a JORC compliant resource estimate for Firawa uranium prospect.
Copper Exploration - Australia
* First seven holes of 1,500m RC in-fill drilling at Maroochydore Copper Project, Western
Australia (JV with Aditya Birla Minerals), all intersect copper with results including 7m @ 2.45% Cu
and 26m @ 1.44% Cu.
* Drilling at Maroochydore expected to recommence in early Q2 2008 depending on drill rig
availability.
Summary
During the Quarter, Murchison continued to progress its portfolio of uranium exploration projects in
Guinea and Mauritania, West Africa. The Company successfully completed its first drilling program in
Mauritania at the Bir En Nar prospect in the Zednes region. The program, comprising 4,006m of Reverse
Circulation (RC) drilling, was completed with anomalous radioactivity observed in 35 of the 41 holes
drilled. It is anticipated that results of downhole radiometric logging will be available soon with assay
results to follow shortly thereafter.
Following the highly encouraging results obtained from the Company's initial successful RC drilling
program completed at the Firawa prospect in Guinea, plans have now been finalised to undertake a 5,000
metre diamond drill program at Firawa commencing immediately after the wet season in September 2008. It
is envisaged that this diamond drilling program will enable the estimation of an initial JORC compliant
resource for Firawa. Planning is also underway for an initial drilling program at the Bohoduo prospect in
Guinea to be undertaken in Q2 2008.
During the Quarter, results were also received for the first phase of a drilling program undertaken at
the Company's Maroochydore Copper JV Project in Western Australia's Pilbara region. The drilling is being
carried out by Murchison's joint venture partner and the project operator, Aditya Birla Minerals Ltd. All
drilling is being carried out within the existing boundary of the current JORC resource of 51Mt @ 1%
copper and 0.04% cobalt. The results received so far are in line with expectations. The remainder of the
drilling program has been delayed due to unavailability of drilling equipment, with drilling expected to
re-commence in early Q2 2008.
To view an image of the Fig.1 Drilling in Mauritania December 2007, please visit the following link:
http://www.ccnmatthews.com/docs/murfig1.pdf
Republic of Mauritania, West Africa
During the December Quarter, Murchison completed its second uranium drilling program in West Africa
within its key Exploration Licences in Mauritania at the Bir En Nar prospect, located in the Zednes
region. 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 program at Bir En Nar commenced in December 2007 and was completed by the end of the month.
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 50 to 150 metres length
for a total of 4,006 metres of drilling. Anomalous radioactivity was observed on samples from all but six
holes. The best records on samples exceed 30,000 c/s with a scintillometer SGR from GF instruments.
To view an image of the Fig.2 Bir En Nar 2007 drilling program, please visit the following link:
http://www.ccnmatthews.com/docs/murfig2.pdf
Poseidon Geophysics carried out radiometric logging of all but three holes (blocked). The equivalent
uranium content is expected to be available shortly. 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.
The Company currently has six "Group 4" uranium exploration licences in Mauritania with a total ground
position of 8,200km2. Two additional applications for exploration permits are currently pending.
To view an image of the Fig.3 Location of Murchison United's exploration permits in Mauritania, please
visit the following link: http://www.ccnmatthews.com/docs/murfig3.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.
To view an image of the Fig.4 Location of Murchison United's Bir En Nar Project in Mauritania,
please visit the following link: http://www.ccnmatthews.com/docs/murfig4b.pdf
Republic of Guinea, West Africa
Murchison has three uranium exploration projects in Guinea. The Company's maiden drilling program,
conducted at its Firawa prospect, was completed in May 2007. The program comprised 29 RC drill holes for
a total of 1,809 metres of drilling. Results confirmed the presence of uranium mineralisation over a
highly prospective 2 km section of a previously identified 5 km long uranium anomaly.
To view an image of the Fig.5 Location of Murchison United's Guinea Projects, please visit the following
link: http://www.ccnmatthews.com/docs/murfig5.pdf
The Company intends to undertake further work at Firawa commencing in March 2008, including topography,
bulldozing and site preparations for a substantial 5,000 metre diamond drill program to follow up the
results of the initial successful RC drilling program. The diamond drilling program is planned to
commence in September 2008, following the wet season.
The Company also plans to commence topography, bulldozing, and a drilling program at its Bohoduo prospect
commencing in March 2008, as well as undertaking further reconnaissance work at its Sesse project.
As a result of this significant program in Guinea, the Company is in the process of establishing a fully
staffed office at the regional centre of Kissidougou, from which these exploration programs 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 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.
To view an image of the Fig.6 Location of Murchison United's Copper/Cobalt Projects, please visit the
following link: http://www.ccnmatthews.com/docs/murfig6.pdf
Assay results from the first seven holes of a planned 13-hole RC drilling program (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 to commence around the end of March 2008. Due to problems
encountered with water inflow, Birla plans to use a larger RC drill rig to complete this program.
A six-hole diamond drilling program has also been planned for further in-fill drilling and to obtain
samples for metallurgical test work. The timing of this program is also 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 program for the Millenium leases, although this project has a lower
priority given the Company's focus on its uranium exploration interests in West Africa.
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
31 January 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.
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
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MURCHISON UNITED NL
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ABN Quarter ended ("current quarter")
--------------- ---------------------------------
59 009 087 852 31 DECEMBER 07
--------------- ---------------------------------
----------------------------------------
Current quarter Year to date
Cash flows related to operating activities A$'000 (6 months)
A$'000
----------------------------------------
1.1 Receipts from product sales and related debtors - -
1.2 Payments for (a) exploration and evaluation (824) (967)
(b) development - -
(c) production - -
(d) administration (455) (812)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature
received 92 184
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 (1,187) (1,595)
--------------------------------------------------------------------------------------------------
Cash flows related to investing activities
1.8 Payment for purchases of:
(a) prospects - -
(b) equity investments - -
(c) other fixed assets (33) (37)
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 (33) (37)
----------------------------------------
1.13 Total operating and investing cash flows (1,220) (1,632)
(carried forward)
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Consolidated statement of cash flows
--------------------------------------------------------------------------------------------------
1.13 Total operating and investing cash flows (1,220) (1,632)
(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
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Net increase (decrease) in cash held (1,220) 1,090
1.20 Cash at beginning of quarter/year to date 6,173 3,863
1.21 Exchange rate adjustments to item 1.20
----------------------------------------
1.22 Cash at end of quarter 4,953 4,953
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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 1.2 141
------------------
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 286
----------------------
4.2 Development 0
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Total 286
-------------------------------------------------------------------------------------------
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 4,953 6,173
--------------------------------------------
5.2 Deposits at call - -
--------------------------------------------
5.3 Bank overdraft - -
--------------------------------------------
5.4 Other (provide details) - -
-------------------------------------------------------------------------------------------------
Total: cash at end of quarter (item 1.22) 4,953 6,173
-------------------------------------------------------------------------------------------------
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 5,000,000 - 11.0 21/12/12
-------------------------------------------------------------
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 January 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.
Murchison United N.L
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