MEDIA RELEASE 8 MAY 2007ALLIANCE ANNOUNCES MAIDENURANIUM...

MEDIA RELEASE 8 MAY 2007
ALLIANCE ANNOUNCES MAIDEN
URANIUM RESOURCE
• Initial resource of 3.9Mt @ 0.37% U3O8 (15,000 tonnes or 32 million pounds of contained U3O8) for
part of the Four Mile West deposit.
• In-ground value of US$3.6 billion (A$4.4 billion) for the resource using a spot price for uranium of
US$113/lb and US$ exchange rate of 0.83 without allowance for metallurgical extraction.
• Significant potential for substantial additions to resource inventory with major step-out drilling
program underway.
• Confirms Four Mile West as one of the most substantive uranium discovery in Australia since
1985.
• Scoping Study underway to evaluate mining and processing options.
Uranium, gold and copper group Alliance Resources Limited (ASX: AGS) today announced a maiden mineral
resource estimate comprising 32 million pounds of contained U3O8 for its exciting Four Mile West
uranium discovery in South Australia, laying the initial foundations for the project’s development and
significantly enhancing its mineral development portfolio.
Alliance said today (Tuesday) that the initial Inferred Mineral Resource for part of the Four Mile West deposit
was 3.9 million tonnes at 0.37% U3O8 (15,000 tonnes or 32 million pounds of contained U3O8).
The initial resource has an in-ground value of US$3.6 billion (A$4.4 billion) using a spot price for uranium of
US$113/lb and US$ exchange rate of 0.83, highlighting the significance of the Four Mile West discovery as the
most substantive uranium discovery in Australia since 1985.
The Four Mile West discovery, which is located 8 km west of the in situ leach Beverley Uranium Mine in
South Australia, is part of Alliance’s Arkaroola Joint Venture with Quasar Resources Pty Ltd. Alliance holds a
free-carried 25% interest in this joint venture, with Quasar holding 75%.
Alliance’s Chairman, Mr John Dunlop, said the area of the mineral resource estimate had been drilled to an
approximate 100 metre square grid with the uranium mineralisation demonstrating good continuity between
the drill holes and the deposit having an average thickness of 2.2 metres and grade-thickness of 0.82m% U3O8.
“We are very pleased with this inaugural resource estimate for part of the higher-grade mineralisation at Four
Mile West, which demonstrates the quality, high grade and potential scale of this deposit,” Mr Dunlop said.
“The initial inventory of contained U3O8, which is contained within a compact area, has a very substantial inground
value at current uranium prices which we expect will continue to grow as the Joint Venture continues
to drill out the broader extent of the deposit and establish resources at the Four Mile East deposit.”
“It is important to emphasise that the area of approximately 1km2 covered by this resource statement is within
a much bigger area of more than 5km2 of potential mineralisation, which has been demonstrated by broadspaced
drilling over the Four Mile area,” he added. “This highlights the potential for the Four Mile Project to
continue to develop as one of the most significant uranium discoveries in recent exploration history in
Australia.”
A priority program of in-fill drilling including confirmatory diamond core drilling, core sampling and
geochemical analysis is planned to enable the resource to be upgraded. A major step-out drilling program using
four drilling rigs is continuing on the Four Mile East deposit to define the boundaries of the mineralisation and
increase the Four Mile resource inventory. Best intercepts to date from this program include 1.5 metres
grading 2.58% pU3O8 and 2.0 metres grading 1.37% pU3O8
“These encouraging results highlight the potential of the Four Mile East deposit to host high-grade uranium
mineralisation similar to that at Four Mile West,” Mr Dunlop said.
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As previously announced, Quasar Resources has commenced an 8 week scoping study on the Four Mile West
deposit following release of the inaugural resource estimate.
- ENDS -
Released by: On behalf of:
Nicholas Read Mr Steve Johnston
Read Corporate/Jan Hope & Partners Chief Executive Officer
Telephone: (+61-8) 9388-1474 Alliance Resources Limited
Telephone: (+61-3) 9697-9090
About Alliance Resources
Alliance Resources Limited is a uranium, copper and gold explorer. Alliance has a 25% free carried
interest in the Arkaroola Project in South Australia, where its joint venture partner, Quasar Resources Pty
Ltd, discovered uranium at the Four Mile prospect in 2005. Quasar is an affiliate of Heathgate Resources
Pty Ltd, which owns and operates the Beverley Uranium Mine, located immediately west of the Arkaroola
Project. Alliance is also developing the Maldon Gold Project in Victoria and exploring for copper-gold at
the Warrina Project in South Australia.