Quarterly Report
31 Luglio 2008 - 11:04AM
UK Regulatory
Union Resources Limited
QUARTERLY ACTIVITIES STATEMENT FOR PERIOD ENDED 30 JUNE 2008
Background
Union Resources Limited ("Union" or "the Company") is focused on:
1. the development of the Mehdiabad Base Metal Project ("the Mehdiabad
Project") located in Central Iran; and
2. assessment of the Sandpiper Submarine Phosphate Project ("the Sandpiper
Phosphate Project") located off the coast of Namibia.
A. Mehdiabad Base Metal Project
The Mehdiabad Project is carried on by Union, Iranian Mines and Mining
Industries Development and Renovation Organization ("IMIDRO") and the company
Itok GmbH ("Itok") through an incorporated Iranian joint venture company,
Mehdiabad Zinc Company ("MZC"). Union has to date invested in excess of US$15
million on exploration and feasibility activities relating to the Project.
As previously advised, IMIDRO purported to terminate several agreements
governing the Project in December 2006. Union stated then, and is still firmly
of the opinion, that the agreements were invalidly terminated. Since that time
Union has been negotiating with various Iranian parties in an effort to resolve
the impasse and progress the Project. At the same time, Union has been
exploring the possibility of resolving the matter through arbitration and has
made initial preparations for instituting arbitration proceedings should that
become necessary.
During the quarter Union continued to hold discussions with the relevant
Iranian parties in an effort to resolve the Project dispute and progress the
Project.
B. Sandpiper Submarine Phosphate Project
In June 2008 the Company signed a contract to acquire Namibian company Sea
Phosphates (Namibia) Pty Limited ("SPL"). SPL holds two Exclusive Prospecting
Licences nos. 3414 and 3415 ("the EPLs") issued by the Namibian Ministry of
Mines and Energy for Phosphates and Precious Stones. The EPLs lie approximately
60km offshore from the coast of Namibia between Walvis Bay and Luderitz. The
combined total area of the EPLs is 200,000 ha.
B.1 Significant Points:
* The EPLs cover the heart of the central enriched phosphate area off the
Namibian coast.
* The area has been subjected to significant past exploration, and SPL has
collated the pre-existing database which will accelerate future evaluation
of the prospect.
* Previous work has shown that phosphate occurs over an area of at least
1,000 sq. km with drilled P2O5 (phosphate) grades on average in the range
15-20%.
Such an area could contain a large deposit if further drilling establishes
continuity of the phosphate horizon, but currently it is not possible to
estimate resources. However the drill pattern and results do suggest that the
deposit is large because there are positive holes (without intervening negative
holes) over a large proportion of the drilled area. Of the holes drilled only
15% contain no phosphate.
* Analysis of the previous exploration and assay data is currently being
conducted by an independent expert to bring it up to the standards required
under the JORC Code, and this work will hopefully be completed in the next
two months.
* Significant work on previous samples exists on the behaviour of the
material in phosphoric acid production, and there is no reason to believe
that the material will not be a suitable feedstock for standard phosphoric
acid plants. A sample has been submitted for further verification.
* A desktop study has been undertaken which has indicated that subsea
recovery should be technically viable and economically cost effective.
* The deposit of peletal phosphorite occurs as unconsolidated sediment in
water between the depths of 250 and 300 meters. It is geologically simple
and exhibits good consistency in area and thickness which will simplify
exploration and development.
* World rock phosphate prices have risen substantially recently, with
industry standard Moroccan export prices increasing from US$50 per ton FOB
to over US$200 per ton FOB over the last year.
B.2 History of the Area
Phosphates were discovered in the area in the 1970s during regional marine
surveys. In subsequent years the areas held by SPL have been subject to
significant exploration and evaluation by several entities:
* Gencor (1992 and 1994) ran a sampling program consisting of 50 vibracore
holes covering at least 1,000 sq km with excellent recovery. SPL acquired
data for 38 of the holes. On the final page of this report is a table of
the drill hole results prepared by an independent consulting geologist. The
report shows the range of grades of P2O5 as falling between 12.30% and
21.49% with most falling in the range 15-20% in water of between 250 and
300m depth. Within the 1,000 sq. km area surveyed one area of approximately
8km x 8km where 11 holes were drilled returned an average of 4.6 metres at
17% P2O5 (see Table immediately below). The program also demonstrated that
phosphate occurs in an adjacent area over 30 km long and over 10km wide,
which constitutes a very large deposit. It should be noted however that
only six holes were drilled in this larger area (nos. 53, 55, 57, 59, 60
and 62 in the attached report) which is insufficient to establish
continuity of the phosphatic horizon. Despite a recommendation for further
evaluation by the evaluation team, when Gencor was acquired by Billiton
work on the prospect ceased.
TABLE
Hole ID Drilled P2O5
P1Vc6-34 3.98 17.52
P1Vc9-37 4.12 13.38
P1Vc7-35 6.15 17.13
P1Vc8-36 4.26 18.35
P1Vc4-32 6.35 17.37
P1Vc5-33 5.42 17.27
P1Vc1-29 2.90 18.59
P1Vc2-30 4.73 19.66
P1Vc15-43 3.78 17.57
P1Vc14-42 5.48 17.06
P1Vc12-40 3.19 18.64
4.58 17.44
Union Resources Limited Namibian Phosphate Prospect - 11 holes drilled in an
area approximately 8 km by 8km.
(Average quoted as 4.6 m grading 17% P2O5).
* Foskor of South Africa kept a defensive watching brief on the area as part
of its competitive strategy and evaluated the possibility of blending the
sedimentary Namibian phosphorites with the rock phosphate material it was
processing in South Africa. A significant difference in the reactivities of
the material (the Namibian Material was significantly more reactive during
the production of Phosphoric acid) meant that the material was not suitable
for blending, and Foskor's interest lapsed.
* The Ocean Phosphates Consortium (2004) extended the bulk sampling program
of Gencor and commissioned a desk top study into the technical viability of
recovering the phosphate material from depth. Subsequent to the death of
one of the senior executives of a member of the Ocean Phosphates
Consortium, exploration discontinued.
* The EPLs were then applied for and acquired by SPL.
Union is currently having the raw data from the Gencor study re-interpreted in
order to produce an acceptable resource estimate consistent with the JORC Code.
B.3 Immediate Program
Union intends to:
* Confirm the Gencor results. An analysis of the previous exploration and
assay data is currently being conducted by an independent expert to bring
it up to the standards required by the JORC Code.
* Subject to funding and vessel availability, commence a bulk sampling
program in order to confirm the behaviour of the material in Phosphoric
Acid plant circuits;
* Identify a strategic partner in the area of submarine material recovery in
order to confirm the technical viability of recovering around 3 million tpa
of the material;
* Seek potential off takers for the material; and
* Confirm the technical and economic viability of the project
B.4 Significant Terms of the Acquisition of SPL
Union has acquired 100% of the issued and outstanding share capital of SPL on
the following significant terms:
1. The issue of 9,000,000 Union shares to the vendor of the shares of SPL
("the Vendor").
2. Final completion under the contract will take place on or before 20 April
2009, subject to satisfaction of a number of conditions precedent, namely:
3.
i. receipt of any required regulatory approvals;
ii. the Namibian Minister of Mines and Energy either granting renewal of
the EPLs or granting a Mining Licence over all or part of the area
covered by the EPLs; and
iii. Union forming the view that the exploration and proposed development
of phosphate mining operations in the areas of the EPLs is commercially
viable.
3. Provided the conditions precedent referred to are satisfied, Union will:
4.
i. on completion pay to the Vendor the sum of US$500,000 and issue to the
Vendor 9,000,000 unquoted options over ordinary shares in Union, each
option having an exercise price of AUD$0.13 per share and expiring on
30 April 2011; and
ii. grant to the Vendor a royalty, capped at US$10,000,000, equal to 3% of
gross revenue derived from sales of product derived from the ore mined
on the site of the EPLs.
4. If the conditions precedent are not satisfied, the 9,000,000 Union shares
to be issued to the Vendor will be cancelled, and Union will transfer back
to the Vendor the shares in SPL.
Expenditure on Exploration Activity
During the quarter $51,035.67 was spent on exploration activities in relation
to the Sandpiper Phosphate Project.
Mining Production and Development
The Company did not undertake any mining production and development activities
in the quarter
UNION RESOURCES LIMITED
Dr Frank Reid
Managing Director
Sandpiper deposit - Summary List of intersections at a lower cut-off of
10% P205Average grade over drilled thickness (length).
Hole Easting Northing elevation From m To m Sample %P2O5
Number below sea (sea (sample length
level floor) depth) m
PHF2-45 -90300 2661488 -240 0.00 1.13 1.13 15.95
P1Vc11 - -86999 2733702 -245 0.00 5.61 5.61 17.80
39
PHF3-46 -100690 2661491 -217 0.00 5.37 5.37 17.36
P1Vc13 - -84949 2733743 -259 0.00 1.10 1.10 13.33
41
PHF5 - 48 -100714 2669485 -217 0.00 3.76 3.76 19.75
p1Vc9 - 37 -85003 2734696 -254 0.00 4.12 4.12 13.38
p1Vc7 - 35 -87998 2734708 -242 0.00 6.15 6.15 17.13
PHF4-47 -93498 2669498 -243 0.00 1.22 1.22 15.44
p1Vc8 - 36 -87998 2734708 -246 0.00 4.26 4.26 18.35
p1vC10 - -84011 2734720 -276 0.00 0.09 0.09 13.10
38
PHF8 - 50 -100586 2677374 -217 0.00 2.62 2.62 17.57
p1Vc6 - 34 -84988 2735697 -254 0.00 3.98 3.98 17.52
p1Vc4 - 32 -86974 2735698 -247 0.00 6.38 6.38 17.37
PHF7-49 -90299 2677397 -258 0.00 1.52 1.52 15.36
p1Vc5 - 33 -85998 2735713 -251 0.00 5.95 5.95 17.27
p1Vc3 - 31 -83998 2736684 -260 0.00 2.26 2.26 15.83
PHF9 - 51 -90297 2685491 -268 0.00 1.66 1.66 17.59
p1Vc1 - 29 -87989 2736703 -242 0.00 2.90 2.90 18.59
p1Vc2 - 30 -85952 2736713 -251 0.00 4.73 4.73 19.66
PHF10 - 52 -100558 2685566 -215 0.00 1.42 1.42 16.18
PHF12-53 -90295 2693595 -274 0.00 5.05 5.05 16.94
PHF13 - 54 -100492 2693595 -208 0.00 2.68 2.68 22.30
PHF14-55 -90270 2701451 -271 0.00 3.98 3.98 21.49
PHF16-57 -87252 2709005 -283 0.00 3.32 3.32 20.46
PHF18-59 -93553 2712731 -244 0.00 3.48 3.48 20.77
PHF19-60 -85243 2717029 -284 0.00 1.86 1.86 20.30
PHF21-62 -93665 2721616 -216 0.00 1.78 2.48 13.77
PHF22-63 -84022 2725992 -289 0.00 0.19 0.19 12.30
PHF24-65 -91695 2730383 -226 0.00 3.10 3.10 16.66
P1Vc15 - -85993 2732679 -250 0.00 3.78 3.78 17.57
43
P1Vc14 - -87997 2732702 -241 0.00 5.48 5.48 17.06
42
P1Vc16 - -84002 2732711 -280 0.00 0.24 0.24 13.00
44
P1Vc12 - -89570 2733674 -245 0.00 3.69 3.69 19.24
40
The information contained in this report relating to exploration results is
based on information compiled by Mr Les Davis. Mr. Davis is employed by
Veronica Webster Pty. Ltd. Mr Davis is a Fellow of the Australasian Institute
of Mining and Metallurgy and has the relevant experience in relation to the
mineralisation being reported upon to qualify as a Competent Person as defined
in the 2004 Edition of the Australasian Code for Reporting of Exploration
Results. Mr Davis consents to the inclusion in the report of the matters based
on his information in the form and context in which it appears.
Enquires to:
Australia: Union Resources Limited
Dr Frank Reid - Managing Director
Phone: +61 07 3833 3833
London: Hanson Westhouse Limited
Bill Staple or Martin Davison
0207 7601 6100
Bankside Consultants
Simon Rothschild / Louise Mason
0207 367 8888
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
Union Resources Limited
ABN Quarter ended ("current
quarter")
40 002 118 872 30 June 2008
Consolidated statement of cash flows
Cash flows related to operating Current quarter Year to date
activities
$A'000 (12 months)
$A'000
1.1 Receipts from product sales and - -
related debtors
1.2 Payments for (a) exploration and (132) (488)
evaluation
- -
(b) development
- -
(c) production
(520) (2,449)
(d) administration
1.3 Dividends received - -
1.4 Interest and other items of a 30 147
similar nature received
1.5 Interest and other costs of - -
finance paid
1.6 Income taxes paid - 9
1.7 Other (provide details if - 33
material)
Net Operating Cash Flows (622) (2,748)
Cash flows related to investing
activities
1.8 Payment for purchases of: (a) - -
prospects
- -
(b) equity investments
- (21)
(c) other fixed
assets
1.9 Proceeds from sale of: (a) - -
prospects
- 2
(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 - (19)
1.13 Total operating and investing cash (622) (2,767)
flows (carried forward)
1.13 Total operating and investing cash (622) (2,767)
flows (brought forward)
Cash flows related to financing
activities
1.14 Proceeds from issues of shares, (3) 2,354
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 (provide details if - -
material)
Net financing cash flows (3) 2,354
Net increase (decrease) in cash (624) (413)
held
1.20 Cash at beginning of quarter/year 1,807 1,602
to date
1.21 Exchange rate adjustments to item (3) (9)
1.20
1.22 Cash at end of quarter 1,180 1,180
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
1.23 Aggregate amount of payments to the parties 192
included in item 1.2
1.24 Aggregate amount of loans to the parties included -
in item 1.10
1.25 Explanation necessary for an understanding of the transactions
Salaries and directors fees
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 - -
3.2 Credit standby arrangements - -
Estimated cash outflows for next quarter
$A'000
4.1 Exploration and evaluation 100
4.2 Development -
Total 100
Reconciliation of cash
Reconciliation of cash at the end of the Current quarter Previous quarter
quarter (as shown in the consolidated
statement of cash flows) to the related $A'000 $A'000
items in the accounts is as follows.
5.1 Cash on hand and at bank 180 804
5.2 Deposits at call 1,000 1,000
5.3 Bank overdraft - -
5.4 Other (provide details) - -
Total: cash at end of quarter 1,180 1,804
(item 1.22)
Changes in interests in mining tenements
Tenement Nature of interest Interest Interest
reference at at end of
(note (2)) beginning quarter
of
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 paid up
per security per security
(see note 3) (see note 3)
(cents) (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 898,373,543 898,373,543 Fully paid Fully paid
securities
7.4 Changes - - - -
during
quarter - - - -
(a) Increases
through
issues
(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 Exercise price Expiry date
(description 246,040,340 246,040,340
and UCLOA UCLOA 9.82 31 March 2009
conversion
factor) 264,428,911 264,428,911
UCLOB UCLOB 10.00 31 March 2009
90,000,000 -
Unlisted 7.50 31 March 2009
6,000,000 -
Unlisted 2.00 31 March 2013
5,333,332 -
Unlisted 2.10 31 March 2015
1,333,333 -
Unlisted 1.30 31 March 2015
1,333,333 By reference 31 March 2015
Unlisted to future
market price
1,500,000 - 2.00 1 April 2009
Unlisted
1,500,000
Unlisted 2.00 1 April 2009
7.8 Issued during 1,500,000 -
quarter Unlisted 2.00 1 April 2009
1,500,000
Unlisted 2.00 1 April 2009
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.
31 July 2008
Dr Frank Reid
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
END
Grafico Azioni Union (LSE:URL)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Union (LSE:URL)
Storico
Da Giu 2023 a Giu 2024
