Bos Glb Hldgs Regulatory News (BOS)

12 Dec 2005 07:00

Murchison United NL12 December 2005 Activity Update December 2005 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 is to focus on energy relatedassets including its existing assets. Company Owned Millenium Leases, Queensland Australia. The Millenium leases are located some 35 kilometers west-north-west ofCloncurry. The leases cover an area on some 3.5 kilometers long and 500 meterswide. The leased area has old workings (early 1900's), exploration costeans anddrill pad sites which were directed to the exploitation of copper ore. Murchisonhas been advised that the contract geologist, whose appointment was announced inthe September quarterly activities report, has completed field work includingthe review of past documentation and has mapped the geology and obtained anumber of rock chip sampling which has been forwarded for multi-elementanalysis. Results of the rock chip sampling and the completion of a reportshould be available early in 2006 which should enable an assessment of theprospectivity for the area. Uranium Review of West Africa Murchison has appointed SRK Consulting (UK) to assess the prospectivity of alandholding package for uranium in the countries of Niger, Mali and The Republicof Guinea. In addition Murchison has also contracted a suitably qualifiedgeologist to review the prospectivity for uranium in adjoining Mauritania. In respect to SRK Consulting (UK) they have completed field trips and haveprovided reports on each country. A summary of their review and Murchisons successful application for explorationpermits is as follows: Republic of Guinea. Murchison has been advised that our application for three Prospecting Permitsin accordance with the Mining Code - 1995 of the Republic of Guinea have beengranted. As such Murchison has been granted three Prospecting Permits over threeseparate concessions known as Firawa, Bohudu and Sesse. The permits were applied for after considering the SRK Exploration report whichwas compiled after having reviewed all historic reports and plans available inConakry, Guinea including conducting a field visit to the three areas whichprevious historical exploration defined several uranium anomalies. SRK conductedfield visits to all three areas of historic uranium anomalies within theKissidougou area to assess access and field conditions. SRK recommended thatbased on the historical data and preliminary work performed the three areas areprospective for uranium and worthy of further exploration. Exploration work pre 1980 was conducted and managed by Davy McKee, Stocktonfinanced by a multinational government body. Work by various parties over timeincluded mapping, initial remote sensing and target generation, airborneradiometrics and magnetics, reverse circulation and diamond drilling (at Bohudu)however most data is not available. Notwithstanding the lack of data SRK hasreported encouraging prospects and recommended obtaining prospecting permits. Extracts of the SRK report covering the Guinea concessions are as follows: Firawa Concession: Prospecting Permits numbered A2005/133 and A2005/134 cover an area of 966 squarekm's. The concession is approximately 560 km's north east of Conakry. SRKlocated two old trenches described as "pits" on the plans. Due to the age of thetrenches and significant depths, safe access was limited, so only three sampleswere taken from the first trench at waypoint F3 and one sample from the secondtrench at waypoint F5. All samples were taken from the wall of the pits. A fifthsample of outcropping laterite was also taken at waypoint F4. Magnetic and EMdata suggest that the anomalies may be associated with the contact between atwo-mica granite and a meta-sediment. However the geochemistry of samplessubmitted for multi-element geochemistry strongly suggest the source to be acabonatite with anomalous strontium, niobium, lanthanum, yttrium and cerium. Results from reconnaissance samples obtained from the Firawa concession are as follows: Sample Sample Description Comments Ur (ppm) Number F1 Fine gr. Silica dominant cream/brown 1.5 down old trench 24 weathered granite/aplite F2 Brown weathered equiv of above 3m down old trench 213 F3 White sugary qtzite vein Near surface of old trench 10 F4 Dense Fe Mn laterite outcrop Side of hill 10 F5 Cream/brown strongly weathered 4m down old trench 25 purplish sed/ granite F6 Sugary sst/qtzite 1243 Bohudu Concession: Prospecting Permits numbered A2005/135 and A2005/137 cover an area of 1049square km's. The concession is approximately 500 km's north east of Conakry. Historically Bohudu contained two anomalous zones defined by soil geochemistryand radon gas anomalies, aligned E-W and coincident with both ground magneticsand EM anomalies. A U308 value of 0.2% was returned from one pit at a 5.6 mdepth. Davy drilled 9 holes on this anomaly, with the best value being 0.12%U308, with elevated copper from a depth of 87 m. The source also appears to beon the contact of a granite and metasediment. Two old drill collars were located at Waypoint B03, and appeared to be BQ size. Various old RC drill spoils were also located within 100m radius of the drillcollars and three samples of drill spoils were taken. The depth of these spoilscould not be ascertained, but as they contained over 50% of lateric material itis assumed they are from the upper 1 or 2 meters of the profile. Details of theRC drilling locations and results were not available and no RC holes are markedon the historical plans viewed to date. Some 60cm of drill core was found andcollected as B2. Again there exact origin is unknown. A historical trench wasalso located at waypoint B5. Results from reconnaissance samples obtained from the Bohudu concession are asfollows: Sample Sample Description Comments Ur (ppm) Number B1 Old drill spoil - D brown red Poss. 1-2m depth 168 lateritic soil material B2 Old BQ size core - Buff white Vfg Found on the ground 5 silstone B3 D Brown red old drill spoil close 93 to B1 B4 Foliated granite/gneiss float pink 11 potassic? B5 Weathered, quartz/mica granite buff 44 soil white clay B6 D brown red old drill spoil - At waypoint B04 127 lateritic material B7 Weathered granite soil and clay From 3m depth 83 fragments in old trench Sesse Concession: Prospecting Permits numbered A2005/136 and A2005/138 cover an area of 964 squarekm's. The concession is approximately 600 km's north east of Conakry. Historical work was regional in nature and comprised grid geochemistry withradon gas analyses and ground magnetics and EM. An old pit was located atwaypoint S03. The pit was very deep and partially collapsed, so a sample couldnot be obtained safely. Results from reconnaissance samples obtained from the Sesse concession are asfollows: Sample Sample Description Comments Ur (ppm) Number S1 Red brown nodular laterite outcrop Area of anomaly 34 S2 Red brown nodular laterite outcrop Younger phase than S1 37 S3 Qtz/mica med gr. Massive Creek bed, edge of anomaly 7 granodiorite outcrop Geochemical Results: Multi-element analyses of the samples described above were conducted at theaccredited laboratory of OMAC in Ireland. The method used was ICP MS whichprovided analyses for 45 elements including uranium. The results are interesting, especially for Firawa where samples FI and F5reported 213ppm and 1243 ppm (or 0.12%) Uranium respectively. The latter isencouraging as it approaches the economic grade of 0.2% Uranium. The samesamples are highly anomalous in other minerals, which suggest the association ofuranium with a carbonatite or alkaline intrusive setting. The results overall are consistent with granite gneiss terrain with definiteevidence for alkaline or carbonate hosted uranium. Further work is required toestablish the geological controls and the grade and extent of mineralisation. Mali and Niger Although SRK have not finalised reports from their field trips the Board isreluctant to apply for exploration concessions in these countries at this time. Republic of Mauritania After considering our contract geologists preliminary review, Murchison hasapplied for various uranium exploration permits in the Republic of Mauritania.The success of our applications remain outstanding. As a consequence of the grant of permits in Guinea, and the applications pendingin Mauritania, the board is currently negotiating the services of a seniorEuropean based Uranium specialist to manage the exploration programme. 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. The Board of Murchison is pleased to have been able to successfully obtainexploration permits in Guinea and are confident that further highly prospectiveexploration permits can be obtained in the near future. Based on the budgets submitted with the application and approved by theGovernment of Guinea, the company has sufficient cash reserves to fund theplanned exploration programme for Year 1. Please call Mark Reilly if you have any queries. Telephone + 61 (08) 9381 4711. ......................... Mark ReillyManaging Director This information is provided by RNS The company news service from the London Stock Exchange