31st Jul 2006 07:14
Murchison United NL31 July 2006 Quarterly Report June 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, Cloncurry - Queensland Australia. The Millenium mining 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 conducted a mapping and sampling program which highlightsthe copper and cobalt potential of the leases. Analytical results of samples arecontained in the report announced to the market on the 7th March 2006. In view of the bullish exploration reports from other listed companies holdinglicences within the area the Board is awaiting a further report on furtherexploration initiatives. The company continues to assess the appropriateness ofthe project in relation to the objectives of the Company including thepossibility of acquiring further exploration areas of similar mineral potential. Murchison continues to hold an interest in Renison Bell Ltd. Renison presentlyoperates under a Deed of Company Arrangement and therefore not under the controlof the Board of Murchison. Renison continues to hold a 47.8% interest in theMaroochydore copper prospect in Western Australia of which the remaininginterest is held by Aditya Birla Minerals Ltd (ASX ABY). Currently a potentialpurchaser is negotiating with the Deed Administrator which if settled shouldgenerate some cash return to Murchison by way of a dividend to creditors.However, should the sale not eventuate it is the Board's intention to commencenegotiations with the Deed Administrator with a view to acquiring this project. Exploration Permits - Republic of Guinea Murchison holds six Uranium Prospecting permits over three separate concessionareas known as Firawa, Bohodou and Sesse. Further to the SRK Exploration reportand findings, the company's Exploration Manager, Mr. Bosse Gustafsson, completeda reconnaissance visit to the Firawa and Bohodou prospects during the quarter.The main aim was to meet with local and state officials, obtain first handknowledge of the facilities available and confirm the findings of previousreports by independent consultants. The visit was very successful, establishinggood local contacts and first hand understanding of local requirements. Thefield visit to Firawa and Bohodou confirmed the conduct of previous explorationactivities of Davy McKee some 25 years ago. This exploration was ground followup of airborne radiometric anomalies and comprised geophysical methods and soilgeochemistry as well as trenching and diamond drilling. During these visits a number of soil samples were taken for independent mineralanalysis. At the time of this report this analysis remains outstanding. 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. Bohodou 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. A review of this data hasprompted Murchison to apply for a further prospecting licence to ensure theprospective area is adequately covered by prospecting permits. 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 completed a fieldvisit to the areas covered by the exploration permits in Mauritania. The sitevisit was conducted to locate and consider anomaly targets selected from newair-radiometric data and to obtain soil samples for independent analysis. At thetime of this report this analysis remains outstanding. 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 continues to consider otherenergy related opportunities. Discussions to date are preliminary andnon-binding. As such if and when proposals become binding, relevantannouncements will be released. Mark ReillyManaging Director31 July 2006 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 30 JUNE 2006 Current quarter Year to dateCash flows related to operating activities A$'000 (12 months) A$'0001.1 Receipts from product sales and related - - debtors1.2 Payments for (a) exploration and (105) (798) evaluation (b) development - - (c) production - - (d) administration (207) (824)1.3 Dividends received1.4 Interest and other items of a similar nature received 8 641.5 Interest and other costs of finance paid - -1.6 Income taxes paid - -1.7 Other (provide details if material) Net Operating Cash Flows (304) (1,558) Cash flows related to investing activities1.8 Payment for purchases of: (a) prospects - - (b) equity investments - - (c) other fixed assets - (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)1.13 Total operating and investing cash flows (304) (1,593) (carried forward) Consolidated statement of cash flows 1.13 Total operating and investing cash flows (304) (1,593) (brought 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 (304) (1,593) 1.20 Cash at beginning of quarter/year to date 699 1,9881.21 Exchange rate adjustments to item 1.201.22 Cash at end of quarter 395 395 Payments to directors of the entity and associates of the directorsPayments to related entities of the entity and associates of therelated entities Current quarter $A'000 Aggregate amount of payments to the parties included in item 60 1.2 Aggregate amount of loans to the parties included in item 0 1.10 Explanation necessary for an understanding of the transactions Salaries 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'0003.1 Loan facilities Nil N/A3.2 Credit standby arrangements Nil N/A Estimated cash outflows for next quarter $A'0004.1 Exploration and evaluation 584.2 Development 0 Total 58 Reconciliation of cash Reconciliation of cash at the end of the quarter Current quarter Previous quarter(as shown in the consolidated statement of cashflows) to the related items in the accounts is as $A'000 $A'000follows.5.1 Cash on hand and at bank 395 6995.2 Deposits at call - -5.3 Bank overdraft - -5.4 Other (provide details) - - Total: cash at end of quarter (item 1.22) 395 699 Changes in interests in mining tenements Tenement Nature of Interest at Interest at end of reference interest beginning of quarter quarter (note (2))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 rightstogether with prices and dates. Total number Number quoted Issue price Amount paid per security up per (see note 3) security (cents) (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, redemptions7.3 +Ordinary securities 271,132,594 271,132,594 2,250,000 - 25 17.4 Changes during quarter (a) Increases through issues Issue for cash (b) Decreases through returns of capital, buy-backs7.5 +Convertible debt securities (description)7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted7.7 Options (description Exercise price Expiry date and 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 29/11/107.9 Exercised during quarter7.10 Expired during quarter7.11 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: 29 July 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 up isnot 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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