Sydney, Dec 22, 2005 AEST (ABN Newswire) - The Directors of Alliance Resources Limited ("Alliance") (ASX: AGS) are pleased to announce an update to the exploration work being undertaken by joint venture partner Quasar Resources Pty Ltd ("Quasar") at the Beverley 4 Mile uranium prospect and M2 copper-gold prospect at Arkaroola in S.A. 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. Beverley 4 Mile Prospect Since the last ASX announcement of 15th November 2005, a further 19 drillholes have been drilled (AK052 to AK070) totalling 3,109 metres. Drilling for 2005 has now been completed. All holes were logged using down hole geophysical probes including a gamma ray log which is used to calculate equivalent grades U3O8 and recently a Prompt Fission Neutron (PFN) tool has been used to verify the presence of uranium mineralisation in selected holes. All holes were drilled vertically to intersect carbonaceous units within the Tertiary sedimentary sequence unconformably overlying weathered Proterozoic basement. Two distinct mineralised zones have now been identified. The drilling program concentrated on defining the extent of mineralisation to the north west of 4-Mile Creek.
Drilling results in the western extension area continued to provide encouragement, with 11 of 19 holes intersecting uranium mineralisation. The extent of the mineralisation is currently 1.6 kilometres x 1.2 kilometres. The mineralised zone has not been closed off. The depth to basement is relatively uniform with depths commonly between 160 metres and 190 metres indicating that there are no major structural controls within this mineralised zone. There are a number of mineralisation horizons within the western mineralised zone. The shallowest mineralised horizon has been identified from 83 metres and the deepest at around 166 metres.
The PFN tool has been run successfully on 6 recent drillholes (AK051, AK063, AK064, AK066, AK069 and AK070) and in all instances has confirmed the presence of uranium mineralisation. Some of the largest intersections of mineralisation identified in the last 19 drillholes include 6 metres @ 0.23% eU3O8 and 7 metres @ 0.096% eU3O8 recorded in AK063 and 5 metres @ 0.104% eU3O8, 2 metres @ 0.223% eU3O8 and 1 meter @ 0.293% eU3O8 recorded in AK065. The final drillhole for 2005, AK070, had mineralisation within silty sand from 149.5 to 153.0 metres (4.5 metres @ 0.562% eU3O8) and mineralisation within silty sand from 158.0 to 166.0 metres (8 metres @ 0.137% eU3O8).
The current extent of mineralisation is limited by drillhole access and in places hard bands limiting depth of drilling. In particular, the southern extent of the western zone has not been fully defined as drilling in holes AK052, AK053 and AK061 was curtailed due to hard bands that could not be penetrated using the current equipment.
Drilling will continue next year. Additional work to define groundwater quality, mineralogy and metallurgical characteristics will also be undertaken.
A preliminary scoping study using an external consultant and concerning the conventional mining potential of the area has commenced.
----------------------------------------------------------------------------- Drill Depth (m) Hole GDA94_E GDA94_N TD From To Thickness eU3O8(%) GT Lithology ----------------------------------------------------------------------------- AK052 355215 6662840 157.3 135 137.5 2.5 0.036 0.09 Silty Sand ----------------------------------------------------------------------------- AK054 356000 6663200 153.2 139.5 141 1.5 0.035 0.053 Silt ----------------------------------------------------------------------------- AK062 354415 6663185 171.7 134.5 136.5 2 0.119 0.238 Silty Sand ----------------------------------------------------------------------------- 94.5 100.5 6 0.230 1.38 Sand AK063 354375 6663627 172 109.5 115 5.5 0.035 0.193 Silty Sand 156.5 163.5 7 0.096 0.672 Sand ----------------------------------------------------------------------------- 83 85.5 2.5 0.047 0.118 Clay AK064 354000 6663600 142 88 89.5 1.5 0.139 0.209 Silty Clay 104 108.5 4.5 0.139 0.626 Silty Sand ----------------------------------------------------------------------------- 86.5 91.5 5.0 0.104 0.520 Clayey Silt to Silt AK065 354000 6664000 180 98 99 1.0 0.293 0.293 Silt to Sandy Silt 120.5 122.5 2.0 0.223 0.446 Silt ----------------------------------------------------------------------------- AK066 354400 6664000 187.5 107.5 109.5 2.0 0.193 0.386 Silty Clay 131 132.5 1.5 0.116 0.174 Silt ----------------------------------------------------------------------------- AK068 354300 6664400 167.2 108 109.5 1.5 0.121 0.182 Silty Clay ----------------------------------------------------------------------------- 138.5 140.0 1.5 0.223 0.335 Silty Clay AK069 354750 6663975 197.5 160 162 2 0.062 0.124 Silty Clay 176 177.5 1.5 0.052 0.078 Silty Clay ----------------------------------------------------------------------------- AK067A 354080 6664400 189 109.5 111 1.5 0.053 0.079 Silty Clay ----------------------------------------------------------------------------- AK070 355050 6663600 190 149.5 153 4.5 0.562 2.529 Silty/Sand 158 166 8 0.137 1.096 Sandy/Silt -----------------------------------------------------------------------------
Figure 1: Table of recent drilling and intersections (eU3O8 refers to equivalent grade U3O8 as estimated from a gammaray
log)
M2 Copper-Gold Prospect
In addition to the uranium drilling at Beverley 4 Mile Prospect, Quasar has reported that three further RC pre-collars were drilled at sites QM2002 (to 186 metres), QM2003 (to 132 metres) and QM2004 (to 108 metres) in preparation for diamond drilling to test the source of the principal magnetic anomalies at M2, within the historic Yudnamutana Mining Field. The hole co-ordinates are listed in the following table.
Hole No Easting* Northing* Azimuth (deg) Dip (deg)--------------------------------------------------------------------- QM2001 (water bore) 334530 6660600 360 -90 QM2002 333778 6660674 060 -60 QM2003 334225 6660959 210 -60 QM2004 334215 6660562 318 -60 QM2005 333253 6660061 To be drilled * GDA 94 Zone 54
All samples from the pre-collar drilling were very fine grained and schistose and displayed chlorite-dominant alteration with variable amounts of associated magnetite, haematite and minor sulphides. The rock type is very fine grained and it is assumed at this stage the parent rock to be a sediment, possibly shale.
Contact
Steve Johnston
General Manager
Tel +61 3 9697 9090
Ian Pamensky
Manager Finance and Company Secretary
Tel +61 3 9697 9090
Kevin Kartun
RADAR Investor Relations
Tel +61 2 8256 3310
website: www.allianceresources.com.au
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