## minebox ags article (16-11-05) -high grade uran

High Grade Uranium Intercepts at Arkaroola

Alliance Resources


Drilling at the Beverley 4 Mile Uranium Prospect at Arkaroola in South Australia by Alliance Resources’ joint venture partner Quasar Resources, has encountered further high grade uranium intercepts.

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.

Rotary mud drilling recommenced on 15 October 2005. Fourteen drillholes were completed during the period, culminating with drillhole AK51 on 12 November 2005.

Drilling during this period concentrated on defining the northern and eastern margins of mineralisation, which occur to the east and north west of 4 Mile Creek, a major creek running through the prospect (the creek area is currently excluded from exploration on Aboriginal Heritage grounds).

While confirming the generally shallow depth to basement (60m to 70m), close to the ranges, drilling has nonetheless defined the margins of a fault-bounded, sub-surface topographic depression in which carbonaceous clays, silts and sands of the Eyre Formation are present. Anomalous gamma radiation (of the order of 0.02% – 0.03% eU3O8) is prevalent throughout this zone.

One drillhole (AK038) was sited east of 4 Mile Creek and intersected the best mineralisation encountered so far in the eastern part of the prospect (5.0m at an average grade of 0.152% eU3O8).

The most recent drilling has defined a zone of high-grade mineralisation to the west of 4 Mile Creek in the vicinity of AK009. AK050 was drilled 450m to the southeast of AK009 and intersected three zones of mineralisation, the best of which occurred within sands at a depth of 143.5m to 147.0m (3.5m thick) at an average grade of 0.087% eU3O8.

AK051 was drilled 400m due south of AK009 and intersected high-grade mineralisation within clayey, carbonaceous sands at a depth of 139.5m to153.0m (13.5m thick) at an average grade of 0.440% eU3O8. This interval contained two high-grade zones within sands at a depth of 1355 m to 144.5m (5.0m thick) at an average grade of 0.801% eU3O8 and at a depth of 147.0m to 151.5m (4.5m thick) at an average grade of 0.405% eU3O8.

Quasar is continuing the exploration drilling at the Beverley 4 Mile Prospect.

- 16 Nov 2005

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