2005 annual report uranium section/huge, page-2

adn uranium announcement ADN is running might have something to do with this announcement back in July last year. From the buying we have today, may be ADN is going to start the uranium drilling program soon.

The announcement sounds like they're sitting on decent uranium grounds in South Australia.

N E W S
• R E L E A S E •
Tuesday, 26 July 2005
ADELAIDE RESOURCES IDENTIFIES PROMISING
URANIUM POTENTIAL ON LARGE S.A. TENEMENTS
Adelaide Resources (ASX : “ADN”) today announced it was well advanced towards
completing a review of the uranium potential on the Company’s vast tenements
across South Australia.
“Already, this review has highlighted the potential for the presence of sedimentary
uranium deposits in our large Eyre Peninsula Project area,” the Company says in its
latest June quarterly report.
Directors said previous exploration programs on the project area came to an abrupt
halt following changes in government uranium policy in the 1980s and had not been
followed up since.
“In contrast to that environment, the current positive long-term outlook for the
uranium market presents the opportunity and confidence to focus attention on the
hunt for new deposits,” they said.
“Our evaluation of all previous drilling indicates that segments of at least three
discrete palaeochannel drainage systems are present in our large wholly-owned Eyre
Peninsula project area near Wudinna.”
Directors said drill holes from exploration completed over 20 years ago on the
Company-held segments of both the Narlaby and Yaninee palaeochannels exhibited
gamma responses that were similar to those at other uranium prospects in South
Australia.
“The presence of the Yarrana uranium prospects downstream from the Company’s
tenement holding indicates sufficient uranium has been mobilized to form mineral
deposits from the ground waters in the Narlaby system, and that reduced sediments
required to initiate uranium precipitation are also locally present,” they said.
“Options for achieving best value for Adelaide Resources from the uranium potential
on our Eyre Peninsula tenements are currently under consideration.
“Evaluation of this uranium prospectivity is progressing rapidly.”
The combined length of the palaeochannels now controlled by Adelaide Resources
totalled over 160 kilometres, including a significant system secured through a new
Exploration Licence Application.

Directors said the current changed uranium environment – including an almost
trebling in the price of uranium oxide in the past two years – had been due in part to
a projected deficit in uranium supply.
“This also reflects that uranium is now recognized as one of the few viable base load
energy sources that will allow countries to meet their carbon dioxide (CO2) emission
targets,” they said.
“Consequently, new nuclear power plants are now in the planning and development
stages in many jurisdictions around the globe.”

MEDIA CONTACTS
Keith Yates Adelaide Resources (08) 8271 0600 / 0417 801 479
John Field Field Public Relations (08) 8234 9555 / 0418 819 527