Maroochydore Copper Project Scoping Study Update
13 Agosto 2008 - 2:19AM
UK Regulatory
MURCHISON UNITED NL
ACN 009 087 852
ASX CODE: MUR, AIM CODE: MUU,
Telephone: +618 9322 4071, Fax: +618 9322 4073
ASX, AIM AND Press Release
13 August 2008
Maroochydore Copper Project Scoping Study Update
__________________________________________________________________________________
Murchison United NL ("Murchison") (ASX: MUR, AIM: MUU) advises that it has received notification of the
results of a Scoping Study carried out by its 50% joint venture partner, Aditya Birla Minerals Ltd (ASX:
ABY), in relation to the Maroochydore Copper Project, located near Telfer in Western Australia. Aditya
Birla Minerals is operator of the Maroochydore Project.
While the Scoping Study resulted in a reduction in the JORC Code compliant resource for the Maroochydore
Project and concluded that the Project is unlikely to support a financially viable mining operation in its
current form, it did also highlight several areas requiring additional work.
Encouraging outcomes in these areas, including metallurgy, resource size, capital costs and synergies with
the nearby Nifty Copper Mine, also owned by Aditya Birla Minerals, would have a positive impact on project
economics.
Details of the revised resource estimate and Scoping Study results are contained in the attached
announcement from Aditya Birla Minerals.
While Murchison continues to work with Adity Birla Minerals to advance the Maroochydore Project, the
Company remains focussed primarily on the exploration and development of its portfolio of uranium projects
in West Africa as the basis for development of a substantial long-term uranium business.
This strategy received a major boost recently with the announcement of a wide-ranging Cooperation Agreement
with the French-based multinational industrial and nuclear energy giant, Areva NC, covering the Company's
Exploration Licences in Mauritania, West Africa.
For further information regarding this announcement, please call Mark Reilly.
..........
Mark Reilly
Managing Director
Murchison's Nominated Advisor for the AIM market is RFC Corporate Finance Ltd.
Contact: Stuart Laing, Ph: +618 9480 2506
Announcement by Aditya Birla Minerals Ltd
13 August 2008
The Manager
Australian Stock Exchange Limited
Level 4
20 Bridge Street
Sydney, NSW 2000
Dear Sir,
MAROOCHYDORE SCOPING STUDY AND UPDATED RESOURCE ESTIMATE
Aditya Birla Minerals Ltd (ASX:ABY) and Murchison United NL (ASX:MUR and AIM:MUU) are 50/50 Joint Ventures
partners in the Maroochydore copper project. The project is located south west of the Aditya Birla Minerals
Ltd owned Nifty copper operation and is one of Australia's largest undeveloped copper projects.
Aditya Birla Minerals Ltd (JV operator) presents the following:
1) Updated Resource Estimate
The Maroochydore resource estimate was re calculated in the light of a thorough technical review. The
updated resource figures are:
Tonnes (Mt) Cu% Co%
Measured - - -
Indicated 36.7 0.8 0.04
Inferred 4.5 0.7 0.04
Total 41.2 0.8 0.04
Table 1: Maroochydore resource estimate 2008 (100% basis). Calculated at a 0.5% copper cut-off.
The net effect of the new resource estimation is a reduction in both tonnes and grade (see Table 2). The
single reason for the change in metal content is a different estimation technique was used. The estimation
technique used by previous operators was not considered to be appropriate for the style of mineralisation
and has been replaced with a Multiple Indicator Kriging model. Resource estimation was carried out by ABML
in house technical staff and audited by the internationally recognised Snowden Mining Industry Consultants.
Tonnes (Mt) Cu% Co%
Measured - - -
Indicated +10.1 -0.3 -
Inferred -20.3 -0.2 -
Total -10.2 -0.2 -
Table 2: Change in Maroochydore resource estimate (100% basis).
2) Scoping Study Results
The Maroochydore JV engaged Hatch Associates Pty Limited to undertake a scoping study for the project. The
scope of works included, but was not limited to:
* Review geological data.
* Generate conceptual mine plan and costing for the project.
* Metallurgical review of previous studies and existing test work.
* Develop Conceptual Design Criteria and Process Flow Sheets.
* Develop Conceptual Equipment Sizing.
* Develop Order of Magnitude Capital and Operating Costs
* Financial Analysis
* Recommendations for future work
The results of the scoping study demonstrate that the Maroochydore project is unlikely to support a
financially viable mining operation in its current form. However, there are areas which require additional
work and encouraging outcomes would have a positive impact on the project economics. Further planned work
includes:
1) Metallurgy - the deposit is complex and the project is hampered by very poor recoveries. Recent
advances in oxide floatation technology could result in a significant increase in recoveries. A series of
metallurgical tests are planned to be under taken to test the response of Maroochydore mineralisation.
2) Resource Size - the project lacks the tonnage to support a capitally efficient operation and
exploration work will now focus on expanding the limits of the known deposit. Furthermore, regional work
will follow up on positive historical drill results and conceptual work aimed at identifying possible
sulphide mineralisation will be undertaken.
3) Capital Costs and Nifty Synergies - worldwide mining cost pressures have resulted in project CAPEX
estimates been significantly higher than expectations. A review of capital costs will be undertaken and
synergies with the nearby Nifty operation will be further explored.
The information in this report which relates to the Mineral Resource for the Maroochydore project is based
on and accurately reflects reports prepared by Mr Geoff Bullen (MAIG). Mr Bullen has the necessary
experience relevant to the style of mineralisation, the type of deposit and the activity undertaken to
qualify as a 'Competent Person' under the JORC Code for Reporting of Mineral Resources and Ore Reserves
(2004 Edition). Mr Bullen has given his consent to the inclusion of the material in the form and context
in which it appears. Mr Bullen is an employee of Aditya Birla Minerals Ltd.
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