annoucement

Curnamona Energy Limited
63 Conyngham Street
Glenside 5065 South Australia
phone 61 8 8338 9292
fax 61 8 8338 9293
email [email protected]
ACN 112 712 115
ASX / Media Release 31 August 2007
APPENDIX 5B – FOURTH QUARTER ACTIVITIES AND CASH FLOW REPORT
CONTINUING EXPANSION OF URANIUM MINERALISATION AT OBAN
HIGHLIGHTS
•
Drilling considerably expands the area of sand-hosted uranium mineralization at Oban
•
Research report on Curnamona Energy prepared by Strachan Corporate
REVIEW OF OPERATIONS
Field Activities
During the quarter exploration drilling focused entirely on the Oban project and was successful in considerably expanding the area of significant sand-hosted uranium mineralization in an area indicated by historic drillhole data ( note that “significant” is used here to indicate potentially economic uranium mineralization with a grade thickness > 0.05 m% eU3O8)
Some excellent uranium intercepts were achieved in this area, including :
CEY097 : 8.20 metres averaging 0.08% eU3O8 for a grade thickness product (GT) of 0.63 m% eU3O8
CEY098 : 5.30 metres averaging 0.085% eU3O8 for a grade thickness product (GT) of 0.45 m% eU3O8
(Note : these intercepts are calculated using a cutoff of 0.01 % eU3O8 and assuming
equilibrium between radioactive components).
The accompanying map shows that a semi-continuous zone covering more than 100Ha defined by the 0.05m% eU3O8 contour (red shading on map) has been outlined within Mineral Claim 3777 by drilling during the quarter. Within this zone are higher grade areas that in some cases are not yet fully defined by drilling (blue and pink areas on map). Most recent drilling is defining a new area lying to the north of Mineral Claim 3777, that again is yet to be fully defined by drilling.
All areas of uranium mineralization so far outlined within Exploration Licence 3181 lie within a 7 kilometre long “prospective zone” that is defined by scattered anomalous results from previous drilling. Drilling is continuing along this zone with the objective of expanding the area of known mineralization at Oban.
Progress of Field Leach Trial At Oban
In order to determine the factors critical to a successful in situ recovery processing at Oban, such as permeability of the sands, uranium leachability / recovery and the extent of uranium disequilibrium, it has been decided to proceed with a simple field leach trial on a relatively well mineralized area (average Grade Thickness of 0.2 m% eU3O8) covering some 100,000 square metres.
The field leach trial requires numerous approvals and consultation with relevant government agencies. After due consideration of Curnamona Energy’s submission by relevant technical experts the Commonwealth Department of Environment and Water Resource (DEWR) have given their approval for commencement of field leach trials.
Mark Randell has undertaken considerable consultation during the quarter with various State Government agencies and other stakeholders and will shortly submit a draft Mining and Rehabilitation Plan (MARP) to PIRSA, which is a critical step in the approval process.
Assuming the field leach trial is successful, Oban Energy would then move to obtain a Mining Lease and the right to sell uranium. It would upgrade the field leach trial pilot plant to a full scale operation, with sales of yellowcake slurry initially to existing producers.
Research report by Strachan Corporate
A research report was prepared by respected resource analyst, Peter Strachan of Strachan Corporate during the quarter. This report notes that Curnamona Energy :
1.
Is on track to be Australia’s next uranium producer, partly because of a favourable state government regulatory regime, and the relative ease of bringing an in situ recovery uranium mine on stream.
2.
Has the financial resources, management expertise and technical capability to achieve its stated objectives, including a field leach trial by 2008.
3.
Has outlined an area with potential for at least 2300 tonnes of eU3O8 within its current mineral claim, with considerable exploration upside in the region.
This research report is available on the Company’s website at www.curnamona-energy.com.au.
Forward exploration planning
Curnamona Energy’s immediate objectives are to
1.
Obtain all approvals required for the construction of a field leach trial plant on the Oban deposit.
2.
Commence testing some 40 kilometres of the lower Yarramba palaeochannel that has never been drilled before.
3.
Continue expanding the ISL uranium resources at Oban.
FINANCE
As at 31 July 2007 the Company had available funds of $9.36 million, of which the majority is held in a term deposit. Expenditure on exploration activities for the quarter was almost $200,000 and is expected to be at a similar level next quarter.
Dr K R Johnson
CHAIRMAN
The information in this report has been prepared by geologists Dr Bob Johnson and Mr Mark Randell who are members of the Australasian Institute of Mining and Metallurgy and Dr Chris Giles who is a member of The Australian Institute of Geoscientists. Drs Johnson and Giles are employed by the Company on consulting contracts and Mr Randell is a full-time employee. They have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration to qualify as Competent Persons as defined in the JORC Code 2004. Drs Johnson and Giles and Mr Randell consent to the release of the information compiled in this report in the form and context in which it appears.
Enquiries should be directed to Dr Bob Johnson, Chairman, on (08) 8338 9292

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
CURNAMONA ENERGY LIMITED
ACN
Quarter ended (“current quarter”)
112 712 115
31/07/07
Consolidated statement of cash flows
Cash flows related to operating activities
Current quarter
$A’000
Year to date
(12 months)
$A’000
1.1
Receipts from product sales and related debtors
1.2
Payments for (a)exploration and evaluation
(b) development
(c) production
(d) administration
-193
-127
-858
-377
Dividends received
1.4
Interest and other items of a similar nature received
146
340
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
-174
-895
Cash flows related to investing activities
1.8
Payment for purchases of: (a)prospects
(b)equity investments
(c) other fixed assets
-67
-236
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)
-2
Net investing cash flows
-67
-238
1.13
Total operating and investing cash flows (brought forward)
-241
-1133
Cash flows related to financing activities
1.14
Proceeds from issues of shares, options, etc.
-354
6046
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
-354
6046
Net increase (decrease) in cash held
-595
4913
1.20
Cash at beginning of quarter/year to date
9954
4446
1.21
Exchange rate adjustments to item 1.20
1.22
Cash at end of quarter
9359
9359
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 included in item 1.2
94
1.24
Aggregate amount of loans to the parties included in item 1.10
1.25
Explanation necessary for an understanding of the transactions
The payments relate to management and consulting fees payable to entities associated with the directors pursuant to contracts entered into with the Company, and also reimbursement of expenses incurred by directors on behalf of the Company
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
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
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available
$A’000
Amount used
$A’000
3.1
Loan facilities
3.2
Credit standby arrangements
Estimated cash outflows for next quarter
$A’000
4.1
Exploration and evaluation
250,000
4.2
Development
Total
250,000
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.
Current quarter
$A’000
Previous quarter
$A’000
5.1
Cash on hand and at bank
183
72
5.2
Deposits at call
9176
9882
5.3
Bank overdraft
5.4
Other (provide details)
Total: cash at end of quarter (item 1.22)
9359
9954
Changes in interests in mining tenements
Tenement reference
Nature of interest
(note (2))
Interest at beginning of quarter
Interest at end of quarter
6.1
Interests in mining tenements relinquished, reduced or lapsed
6.2
Interests in mining tenements acquired or increased
EL 3770
EL 3771
EL 3772
EL 3820
Granted application
Granted application
Granted application
Granted application
100%
100%
100%
100%
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 per security (see note 3) (cents)
Amount paid up per 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
62,497,103
62,497,103
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 (description and conversion factor)
3,200,000
500,000
200,000
40,000
50,000
50,000
250,000
Directors Employee
Employee
Employee
Employee
Employee Employee
Exercise price
25 cents
62 cents
62 cents
55 cents
55 cents
55 cents
58 cents
Expiry date
19/04/2010
14/07/2010
29/08/2010
20/02/2011
15/05/2011
16/06/2011
19/10/2011
7.8
Issued during quarter
200,000
Employee
181cents
08/06/2012
7.9
Exercised during quarter
10,000
Exercise price
55 cents
Expiry date
20/02/2011
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 /does not* (delete one) give a true and fair view of the matters disclosed.
Sign here: ................................................... Date: 31 August 2007
(Director/Company secretary)
Print name: Dr KR Johnson....Director / Chairman.....................................................
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.
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