January 27, 2010

Alliance Resources Sees More Uranium At Four Mile

ALLIANCE Resources has announced a 16 per cent increase in its resource estimate for the $110 million Four Mile uranium project near Beverley.

The company said the resource estimate for Four Mile West had been revised upwards to 19,000 tonnes of uranium oxide, increasing the overall project resource to 32,000 tonnes, or 71 million pounds of uranium oxide at 0.33 per cent.

The upgraded estimate included 14,000 tonnes of uranium oxide at an average grade of 0.34 per cent which has been proved as ``indicated'' in accordance with Australian standards.

Alliance said the resource estimate did not include uranium oxide mineralisation above or within 20 metres of the water table, which could add up to 30 per cent to the Four Mile West resource if it could be successfully recovered.

Alliance Resources managing director Patrick Mutz said there remained ``significant potential'' for the further expansion of the mineral resource at Four Mile by further evaluation and drilling campaigns.

"The updated mineral resource estimate for Four Mile has reinforced our view that Four Mile is a substantive uranium deposit which is still open in several directions.''

The mine is currently the subject of legal action between the two joint venture parties who own the mine, Alliance and Quasar Resources.

Last year, Alliance said Four Mile has been delayed until April 2010 "or beyond'', while the two parties resolved Native Title and management disagreements.

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