ALLIANCE RESOURCES LIMITED - ASX: AGS

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Description

Alliance Resources Limited (ASX Code: AGS) is ASX listed resource company focused on the development and, ultimately, production from its joint venture interest in the Four Mile Uranium Project in South Australia, and in realising value from its exploration interests.

Four Mile Uranium Project, South Australia (25%)

The Four Mile Uranium Project is located 550km north of Adelaide in South Australia. The project contains the Four Mile uranium discovery. The project is a joint venture with Quasar Resources Pty Ltd (75%). AGS is free carried through exploration. Quasar is an affiliate of Heathgate Resources, owner and operator of the adjacent Beverley uranium mine - Australia's third uranium mine and the only in situ leach mine. Heathgate is the Australian affiliate of US company General Atomics.

The Four Mile uranium deposit, discovered in 2005, is a sandstone-hosted occurrence defined by two mineralised zones within Tertiary age sediments: Four Mile West and Four Mile East, which occur within laterally extensive, reduced sands and silty sands below the water table at 140 to 210m depth.

The initial resource at Four Mile West is 3.9 million tonnes at 0.37% uranium oxide containing 15,000 tonnes (32 million lb) of uranium oxide. The Four Mile West resource estimate area is ~1km2 and is within a much larger area (~7km2) of potential mineralisation as indicated by broad-spaced drilling and gamma responses.

A major step-out drilling program utilising up to four drill rigs continues at Four Mile East to define the limits of mineralisation with the aim of estimating a mineral resource for part of the Four Mile East deposit during 2007. Quasar is conducting a concept study to consider the most appropriate mining method and has commenced pegging mineral claims in anticipation of a decision to mine in 2008. AGS anticipates that Four Mile will be amenable to in situ leach mining. The project has support of the South Australian Government.

The project is also prospective for iron-oxide copper-gold mineralisation.

Maldon Gold Project, Victoria (100%)

The Maldon project is located 30km southwest of Bendigo in central Victoria and has produced historically a total of 1.75 million ounces of gold at an average grade of 28 g/t. Alliance undertook major development work at Maldon aimed at bringing the Alliance South gold lode into production, however, development was suspended late last year to conserve cash to meet Alliance's commitments to the Four Mile Uranium Project. The decline and other mine infrastructure are fully maintained and the Project also includes an operational-ready CIL gold treatment plant.

On the 16 October 2009 Alliance entered an agreement to sell Maldon Resources Pty Ltd to Drummond Gold Ltd. The agreement is subject to certain terms and conditions, including the approval of shareholders of Drummond, all necessary consents and approvals as required under the Corporations Act and the ASX Listing Rules, and the raising of at least $3,000,000 by Drummond.

Warrina Copper-Gold Project, South Australia (100%)

The Warrina project is located 60km north east of Coober Pedy in the Gawler province of South Australia. The project is prospective for Olympic Dam style breccia-hosted iron-oxide copper-gold mineralisation.

East Frome Base Metal Project, New South Wales (100%)

The East Frome project is located 30km north west of Broken Hill in New South Wales. The project is prospective for copper-gold mineralisation and Broken Hill style lead-zinc-silver mineralisation.

Mine For

Uranium, Copper, Gold

Location of operation(s)

South Australia, Victoria, New South Wales

Address

Suite 3 , 51 - 55 City Road
SOUTHBANK, VIC, AUSTRALIA

Phone

03 9697 9090

Email

Website

http://www.allianceresources.com.au

Last Updated

18/1/2011