27th Apr 2006 08:54
Murchison United NL27 April 2006 Quarterly Report March 2006 Summary _____________________________________________________________________________ Murchison continues to review existing assets and investigate resourceopportunities in Australia and internationally to assess their appropriatenessfor the Company. The broader strategy of Murchison, apart from its existingassets, is to focus on energy-related assets. During the quarter the followingprogress has been achieved. Company Owned Millenium Leases, Queensland Australia. The Millenium leases are located some 35 kilometres west-north-west ofCloncurry. The leases cover an area on some 3.5 kilometres long and 500 metreswide. The leased area has old workings (early 1900's), exploration costeans anddrill pad sites which were directed to the exploitation of copper ore. Anindependent geologist was contracted to conduct a mapping and sampling programwith a view of providing management with recommendations to exploit theprospectivity of the mining leases. The report which highlights the copper andcobalt potential of the leases was announced to the market on the 7th March2006. Analytical results of samples are contained in the report. The Board is currently considering the recommendations of the report and theappropriateness of the project in relation to the objectives of the Company. Exploration Permits - Republic of Guinea Murchison continues to hold six Uranium Prospecting permits over three separateconcession areas known as Firawa, Bohodu and Sesse. Further to the SRKExploration report and findings, the company's Exploration Manager, Mr. BosseGustafsson, completed a reconnaissance visit to the Firawa and Bohodu prospectsduring the quarter. The main aim was to meet with local and state officials,obtain first hand knowledge of the facilities available and confirm the findingsof previous reports by independent consultants. The visit was very successful,establishing good local contacts and first hand understanding of localrequirements. The field visit on Firawa and Bohodu confirmed the conduct ofprevious exploration activities of Davy McKee some 25 years ago. Thisexploration was ground follow up of airborne radiometric anomalies and comprisedgeophysical methods and soil geochemistry as well as trenching and diamonddrilling. Firawa Prospect: Past airborne surveys note a five kilometre long anomaly in E-W direction. Thearea was explored by means of detailed ground spectrometry, EM, magneticmeasurements and soil geochemistry in the target area by Davy Mckee. Our visitconfirmed the existence of 25-year-old deep pits and trenches on the anomalypeaks. The geological map shows granite with a wide shear zone but the groundsurface and diggings show a thick laterite cap. Subsequent to the reconnaissance visit a further prospecting licence has beenapplied for ensuring the prospective area is adequately covered by prospectingpermits. Bohodu Prospect: Previous ground work by Davy McKee covers an area orientated E-W approximately 4x 1 kilometres where the main target they identified was a 700 metre long,irregular uranium anomaly. Previous work included diamond drilling however itwould appear that few reached expected depths and cores or analysis of the coresare not available. Our visit confirmed the existence of old workings includingdrill holes, sampling pits and trenches. The anomaly identified by Davy Mckee occurs in an area where small granitebodies intrude paragneiss along a shear zone. The company has purchased additional airborne data over this area with a view ofreprocessing data for further exploration work. Although early in the exploration phase, the company is comforted by the factthat extensive ground work has been undertaken. While much meaningful data fromthis work is unavailable, the fact that it was undertaken some time ago providessome confidence in the prospectivity of the area. Exploration Permits - Republic of Mauritania Murchison has applied for six "group 4" Uranium exploration permits in theRepublic of Mauritania. To date 2, permits covering 2,898 square kilometres havebeen granted. The Company's Exploration Manager Mr Bosse Gustafsson has recently completed areconnaissance visit to the areas covered by the exploration permits inMauritania. The main aim was to meet with local and state officials, obtainfirst hand knowledge of the facilities available. In addition a site visit wasconducted to locate and consider anomaly targets selected from newair-radiometric data. Murchison is pleased to note that other international companies have followedMurchison and claimed uranium exploration ground in Mauritania. Other Consistent with the focus on energy assets Murchison is currently consideringother energy related opportunities. Discussions to date are preliminary andnon-binding. As such if and when proposals become binding, relevantannouncements will be released. Mark ReillyManaging Director 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 entityMURCHISON UNITED NL ABN Quarter ended ("current quarter")59 009 087 852 31 MARCH 2006 Consolidated statement of cash flows Current quarter Year to date Cash flows related to operating activities A$'000 (12 months) A$'0001.1 Receipts from product sales and related - - debtors 1.2 Payments for (a) exploration and (269) (693) evaluation (b) development - - (c) production - - (d) administration (220) (617) 1.3 Dividends received1.4 Interest and other items of a similar nature received 13 56 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 (476) (1,254) Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects - - (b) equity investments - - (c) other fixed assets (35) (35) 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 (35) (35)1.13 Total operating and investing cash flows (511) (1,289) (carried forward) 1.13 Total operating and investing cash flows (brought (511) (1,289) forward) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. - -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 0 0 Net increase (decrease) in cash held (511) (1,289) 1.20 Cash at beginning of quarter/year to date 1,210 1,9881.21 Exchange rate adjustments to item 1.201.22 Cash at end of quarter 699 699 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the relatedentities Current quarter $A'000 1.23 Aggregate amount of payments to the parties included in item 1.2 65 1.24 Aggregate amount of loans to the parties included in item 1.10 0 1.25 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 146 4.2 Development 0 Total 146 Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) Current quarter Previous quarterto the related items in the accounts is as follows. $A'000 $A'000 5.1 Cash on hand and at bank 699 1,2105.2 Deposits at call - -5.3 Bank overdraft - -5.4 Other (provide details) - - Total: cash at end of quarter (item 1.22) 699 1,210 Changes in interests in mining tenements Tenement Nature of interest Interest at Interest at reference beginning of end of (note (2)) quarter quarter6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining 281 Uranium exploration permit 0% 100% tenements acquired or covering 1,492 klm2 in the increased Republic of Mauritania Uranium exploration permit 0% 100% 282 covering 1,406 klm2 in the Republic of Mauritania Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rightstogether with prices and dates. Total number Number quoted Issue price per Amount paid up per security (see note security (see note 3) (cents) 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 271,132,594 271,132,594 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 price Expiry date conversion factor) (cents) 7,500,000 - 5.5 19/5/10 2,500,000 - 5.5 30/6/10 2,000,000 - 5.5 29/11/10 350,000 - 46.0 1/7/07 7.8 Issued during quarter 2,500,000 5.5 30/6/10 2,000,000 5.5 29/11/10 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 whichcomply with accounting standards as defined in the Corporations Act or otherstandards acceptable to ASX (see note 4). 2 This statement does give a true and fair view of the mattersdisclosed. Sign here:..................................................... Date: 27 April 2006...... Company Secretary Print name: .............Joe Schiavi...................... Notes 1 The quarterly report provides a basis for informing the market howthe entity's activities have been financed for the past quarter and the effecton its cash position. An entity wanting to disclose additional information isencouraged 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 inrespect of interests in mining tenements acquired, exercised or lapsed duringthe reporting period. If the entity is involved in a joint venture agreementand there are conditions precedent which will change its percentage interest ina mining tenement, it should disclose the change of percentage interest andconditions precedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities The issue price and amount paid upis not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting forExtractive Industries and AASB 1026: Statement of Cash Flows apply to thisreport. 5 Accounting Standards ASX will accept, for example, the use ofInternational Accounting Standards for foreign entities. If the standards useddo not address a topic, the Australian standard on that topic (if any) must becomplied with. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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