further outstanding beverley 4 mile uranium

ASX ANNOUNCEMENT
Manager Announcements
Company Announcements Office
Australian Stock Exchange Limited
4th Floor, 20 Bridge Street
Sydney NSW 2000
By E-Lodgement No. of pages: 5
7 September 2006
Dear Sir
FURTHER OUTSTANDING BEVERLEY 4 MILE URANIUM INTERSECTIONS
Highlights
�� Outstanding high grade uranium intersections continue from the Beverley 4 Mile Uranium Prospect including:
3.0 metres grading 2.11% pU3O8
9.0 metres grading 0.62% pU3O8
6.5 metres grading 0.82% pU3O8
9.0 metres grading 0.53% pU3O8
5.0 metres grading 0.86% pU3O8
3.0 metres grading 1.35% pU3O8
(pU3O8 refers to the U3O8 grade as determined from PFN logging)
�� The program is designed to drill out the high-grade part of the Western Zone to enable a JORC compliant mineral resource estimate later this year.
�� Diamond drilling at the M1 copper-gold prospect returned the best result to date of
10m @ 0.32% Cu (QM1003, from 264m).
Details of Announcement
The Directors of Alliance Resources Limited (“Alliance”) (ASX Code: AGS) are pleased to announce an exploration update and preliminary drilling results provided by joint venture partner and operator Quasar Resources Pty Ltd (“Quasar”) at the Beverley 4 Mile Uranium Prospect (“4 Mile”), and M1 copper-gold Prospect in South Australia.
Uranium
Exploration during August continued to focus on Beverley 4 Mile Uranium Prospect with the completion of 58 rotary mud drill holes (AK049A, AK105 to AK161) for a total of 11,000m (Figure 1). The drill results in Table 1 show the PFN results available at the time of reporting. It is emphasised that the results may be subject to revision once the geophysical logs are made available to Alliance.
Suite 3, 51-55 City Road
Southbank, VIC, 3006
P +61 3 9697 9090 F +61 3 9697 9091
[email protected]
www.allianceresources.com.au
ABN 38 063 293 336
ASX ANNOUNCEMENT
Drilling targeted the western area of 4 Mile, with the aim of defining the extent of the high-grade mineralized zone at ~100m drill centres. The area now defined at this drill density is ~0.6Km2 and remains to be closed off.
The results of the recent drilling have significantly added to the continuity of mineralization in the western zone at 4 Mile. The geological model continues to be developed, with the current interpretation supporting a roll-front style mineralized system. The majority of holes have been logged with the PFN tool and in almost all cases the disequilibrium factor is positive, typically 1.5-2.5 in favour of uranium. However, chemical analysis of diamond drill core is required to confirm the PFN grades.
Drilling is continuing at 4 Mile and is expected to be completed within 2 weeks. Following completion of this programme, the validated data will be used to calculate a JORC compliant mineral resource estimate.
Table 1: Significant uranium results from Beverley 4 Mile Prospect
Drill_Hole
GDA94_E
GDA94_N
TD
From_PFN
To_PFN
Thickness_PFN
pU3O8(%)
GT-PFN
AK104
355203
6663511
192.0
153.0
162.5
9.5
0.377
3.58
AK105
354800
6663100
166.0
134.0
135.0
1.0
0.268
0.29
AK106
355290
6663590
182.0
156.0
160.0
4.0
0.543
2.17
AK106
355290
6663590
182.0
166.0
170.5
4.5
0.147
0.66
AK107
354900
6663200
178.0
141.3
149.0
7.7
0.372
2.88
AK108
355296
6663397
184.0
148.0
157.0
9.0
0.526
4.73
AK109
354900
6663700
189.0
144.5
146.0
1.5
0.204
0.31
AK109
354900
6663700
189.0
156.5
162.5
6.0
0.193
1.16
AK110
355300
6663320
176.0
148.0
151.0
3.0
0.101
0.30
AK111
355200
6663710
192.0
153.5
156.5
3.0
2.109
6.33
AK111
355200
6663710
192.0
165.0
169.0
4.0
0.176
0.70
AK112
355300
6663200
184.0
No significant results
AK113
355340
6663721
198.0
160.0
162.0
2.0
0.376
0.75
AK113
355340
6663721
198.0
173.5
178.0
4.5
0.170
0.77
AK114
355375
6663243
185.0
No significant results
AK115
355376
6663300
188.0
149.5
152.0
2.5
0.067
0.17
AK116
355400
6663700
199.0
163.5
164.5
1.0
0.244
0.24
AK116
355400
6663700
199.0
170.0
174.0
4.0
0.121
0.48
AK117
355500
6663600
196.0
158.0
167.0
9.0
0.623
5.61
AK118
355100
6663500
187.0
151.5
156.5
5.0
0.588
2.94
AK118
355100
6663500
187.0
159.5
162.0
2.5
0.246
0.62
AK119
355300
6663100
184.0
144.5
145.5
1.0
0.051
0.05
AK120
355500
6663500
194.0
154.0
159.0
5.0
0.430
2.15
AK120
355500
6663500
194.0
159.0
165.5
6.5
0.071
0.46
AK121
355470
6663441
199.0
152.0
156.0
4.0
0.095
0.38
AK121
355470
6663441
199.0
157.0
164.0
7.0
0.126
0.88
Note: Intercepts >1% GT-PFN (thickness x pU3O8) highlighted. PFN results reported for hole AK104, following previously reported gamma response (eU3O8).
Suite 3, 51-55 City Road
Southbank, VIC, 3006
P +61 3 9697 9090 F +61 3 9697 9091
[email protected]
www.allianceresources.com.au
ABN 38 063 293 336
ASX ANNOUNCEMENT
Table 1 (cont): Significant uranium results from Beverley 4 Mile Prospect
Drill_Hole
GDA94_E
GDA94_N
TD
From_PFN
To_PFN
Thickness_PFN
pU3O8(%)
GT-PFN
AK122
355200
6663100
190.0
No significant results
AK123
355600
6663400
182.0
No significant results
AK124
355000
6663300
182.0
145.5
148.5
3.0
1.350
4.05
AK124
355000
6663300
182.0
152.5
155.5
3.0
0.380
1.14
AK125
354900
6663300
182.0
145.0
147.5
2.5
1.286
3.22
AK125
354900
6663300
182.0
154.0
155.0
1.0
0.392
0.39
AK126
355600
6663800
206.0
171.5
174.0
2.5
0.046
0.12
AK127
354900
6663400
186.0
145.0
147.0
2.0
0.354
0.71
AK127
354900
6663400
186.0
152.5
154.5
2.0
0.171
0.34
AK128
355700
6663800
172.0
No significant results
AK129
354800
6663300
178.0
142
143.5
1.5
0.257
0.39
AK129
354800
6663300
178.0
148.0
151.0
3.0
0.506
1.52
AK130
354800
6663500
186.0
143.5
146.0
2.5
0.328
0.82
AK130
354800
6663500
186.0
149.0
151.5
2.5
0.309
0.77
AK131
354907
6663510
190.0
147.0
149.0
2.0
0.962
1.92
AK131
354907
6663510
190.0
153.5
157.5
4.0
0.290
1.16
AK132
354900
6663600
192.0
147.5
149.5
2.0
0.392
0.79
AK132
354900
6663600
192.0
158.0
161.5
3.5
0.303
1.06
AK133
355000
6663500
190.0
148.5
150.5
2.0
0.096
0.19
AK133
355000
6663500
190.0
156.0
159.5
3.5
0.146
0.51
AK134
355102
6663612
200.0
150.5
153.0
2.5
0.908
2.27
AK134
355102
6663612
200.0
160.0
166.0
6.0
0.146
0.87
AK135
355000
6663725
198.0
146.0
149.0
3.0
0.301
0.90
AK135
355000
6663725
198.0
160.0
167.0
7.0
0.117
0.82
AK136
355100
6663700
190.0
149.5
151.0
1.5
0.259
0.39
AK136
355100
6663700
190.0
163.0
166.0
3.0
0.151
0.45
AK137
355500
6663700
200.0
163.0
169.5
6.5
0.822
5.34
AK138
355400
6663800
198.0
167.5
169.0
1.5
0.123
0.19
AK138
355400
6663800
198.0
173.0
176.5
3.5
0.104
0.37
AK139
355600
6663700
198.0
No significant results
AK140
355500
6663800
202.0
169.5
173.0
3.5
0.766
2.68
AK141
355500
6663900
204.0
170.0
173.0
3.0
0.217
0.65
AK142
355600
6663500
158.0
No significant results
AK143
355500
6664000
204.0
168.5
172.5
4.0
0.035
0.14
AK144
355592
6663890
210.0
No significant results
AK145
355400
6664000
198.0
168.0
171.5
3.5
0.088
0.31
AK146
354700
6663100
158.0
132.0
134.0
2.0
0.035
0.07
AK147
354700
6663200
168.0
138.5
139.5
1.0
0.244
0.24
AK147
354700
6663200
168.0
147.5
149.5
2.0
0.365
0.73
AK148
354800
6663150
174.0
137.5
139.0
1.5
0.137
0.21
AK148
354800
6663150
174.0
144.5
145.5
1.0
0.159
0.16
AK149
354900
6663150
174.0
140.0
145.0
5.0
0.858
4.29
AK150
355000
6663150
174.0
140.5
142.0
1.5
0.079
0.12
AK049a
355600
6663600
160.0
No significant results
Note: Intercepts >1% GT-PFN (thickness x pU3O8) highlighted. Hole AK49a is a deeper re-drill of previously reported hole AK49.
Suite 3, 51-55 City Road
Southbank, VIC, 3006
P +61 3 9697 9090 F +61 3 9697 9091
[email protected]
www.allianceresources.com.au
ABN 38 063 293 336
ASX ANNOUNCEMENT
Copper
As previously reported, two diamond core tails (QM1003 and QM1004) were drilled at the M1 Prospect in June of this year. Both holes intersected a magnetite/hematite breccia complex hosted within adjacent quartzites, similar in style to observed outcrop. A close association between sulphide mineralisation and the hematite/magnetite breccia complex observed in the drill core returned the best result to date of 10m @ 0.32% Cu (QM1003, from 264m). Collar details for QM1003 are presented in Table 2.
Assay results are awaited for QM1004.
Table 2: M1 Prospect significant copper assay results
HOLE_ID
HOLE_TYPE
GDA94 N
GDA94 E
Total Depth
From (m)
To (m)
INTERCEPT
QM1003
Diamond core
6674831.9
352996.4
453.3m
264
274
10m @ 0.32% Cu
Note: Intersections are calculated using a 0.25% copper cut-off grade with a maximum thickness of 4m internal dilution. All widths refer to down hole intersections
About Alliance Resources
Alliance Resources Limited is a uranium and gold explorer. Alliance has a 25% free carried interest in the Arkaroola Project in South Australia, where its joint venture partner Quasar is exploring for uranium, copper and gold. Quasar is an affiliate of Heathgate Resources Pty Ltd, which owns and operates the Beverley Uranium Mine. The Arkaroola Project is located immediately west of the Beverley Uranium Mine. Alliance also operates the Maldon Gold Project in Victoria.
For information about Alliance Resources please contact:
Steve Johnston, General Manager Tel +61 3 9697 9090
Ian Pamensky, Manager Finance and Company Secretary Tel +61 3 9697 9090
Or consult Alliance’s website: www.allianceresources.com.au
Compliance Statements
The information in this report that relates to Uranium Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Andrew Bowden who is a Chartered Geologist and Fellow of the Geological Society of London, a Recognised Overseas Professional Organisation included in a list promulgated by the ASX from time to time. Mr Andrew Bowden is employed by GeoDec Consulting. Mr Bowden has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Andrew Bowden consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to Copper Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Stephen Johnston who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Johnston is a full-time employee of the company. Mr Johnston has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Johnston consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Suite 3, 51-55 City Road
Southbank, VIC, 3006
P +61 3 9697 9090 F +61 3 9697 9091
[email protected]
www.allianceresources.com.au
ABN 38 063 293 336
ASX ANNOUNCEMENT
Figure 1 Four Mile Prospect western mineralized zone drill location map
Suite 3, 51-55 City Road
Southbank, VIC, 3006
P +61 3 9697 9090 F +61 3 9697 9091
[email protected]
www.allianceresources.com.au
ABN 38 063 293 336