Alliance Resources Report Newly Discovered Gold Lode

The Directors of Alliance Resources Limited ("Alliance") (ASX: AGS) are pleased to announce that a new gold lode has been discovered at its 100%-owned Maldon Gold Project in central Victoria some 140 metres west of the current decline.

A recent diamond drill hole (DDH 136) was drilled west from the Union Hill Decline, targeting the Ladies and Day Dawn reefs. Gold assays confirm a significant mineralised zone in Ladies reef, associated with its east-bounding ("wall") fault. The eastern mineralised zone comprises 2.75 metres @ 22.10 g/t gold, with a second zone of 1.00 metre @ 5.38g/t gold approximately five metres further west.

Drill lengths are likely to be close to true width, as DDH 136 was drilled at a high angle to the interpreted reef dip. Samples were analysed using the Bulk Leach Extractable Gold process and show good correlation with duplicate fire assays.

Collar details of DDH 136 are presented in Table 1, whilst sample and grade data are in Table 2. The high-grade intercept is in an area away from known historical workings, as Ladies reef was mined mainly to shallow depths in an area 250 metres northwest of the drill section.

The newly identified mineralisation is around 30 metres lower than the decline at this northing, approximately 140 metres to its west and 100 metres below surface. The structural position of the mineralisation is very similar to that of historical ore shoots in Linscott's and Eaglehawk reefs, which were found where the reef was in the anticlinal east limb but close to the fold hinge.

This lode is a new discovery in the Ladies reef. It has the potential to be readily developed from the existing decline 140 metres away, and if proved, to provide early mill feed for Alliance's fully permitted Maldon treatment plant.

Alliance plans follow-up drilling of Ladies reef from the decline, to enable the extent and geometry of the mineralisation to be assessed.

The detailed announcement is at the following link;
http://acnnewswire.net/lnk/QK6H8O75


About Alliance Resources Limited

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. In May 2007, Alliance and Quasar announced an initial Inferred Mineral Resource for the Four Mile West Uranium deposit of 3.9 million tonnes at 0.37% U3O8 containing 15,000 tonnes (32 million lb) of U3O8. Alliance is also developing the Maldon Gold Project in Victoria and exploring for copper-gold at the Warrina Project in South Australia.

 

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