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Murchison United N.L (FTE)

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Thursday 31 January, 2008

Murchison United N.L

Second Quarter Activities and Cashflow Report



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

---------------------------------------------------------------------------------------------------------

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
-------------------------------------------------------------------------------------------------
MURCHISON UNITED NL

-------------------------------------------------------------------------------------------------

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)
--------------------------------------------------------------------------------------------------

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
--------------------------------------------------------------------------------------------------

          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
--------------------------------------------------------------------------------------------------

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
-------------------------------------------------------------------------------------------  

          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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