Alliance Resources close to Four Mile environmental approval

THE CONFERENCE CALLER: The main focus of copper-gold uranium company Alliance Resources (ASX: AGS) is the company’s 25 per cent stake in the Four Mile uranium project in South Australia.

The Four Mile project boasts an Indicated and Inferred Resource of 71 million pounds of uranium oxide and is claimed to have the potential to be one of the largest and highest grade in-situ recovery uranium mines in the world.

 

Source: Company presentation

“Our share of that is just under 18 million pounds of uranium oxide,” Alliance Resources managing director Steve Johnston told the Australian Uranium Conference.

“It is a high-grade Resource at 3200 parts per million. I often get shareholders ringing up asking if we have made mistakes in our announcements and if it is 320ppm. It is 3200ppm.

“It’s a sensational mineralised zone.

“I can’t call it an ore body yet, but we’re not far away from demonstrating its viability.”

The Four Mile project is operated by Quasar (75 per cent), which has subsequently delegated that responsibility to its affiliate company Heathgate Resources, which is the owner-operator of the Beverly uranium mine.

“At this stage, based on current projected rates going forward of two million pounds per annum, this project has a mine life of 25 years,” Johnston said.

This surprised attentive members of the audience as Johnston had 15-plus years on his presentation slide.

“I’ve got 15-plus years there,” he explained.

“Because, ideally, I would like to see the production profile up around three million ponds per annum, but at this stage it is around two million pounds.”

Development of the project has been held up due to the approval of a Program for Environmental Protection and Rehabilitation (PEPR).

Johnston told the conference audience he had been in discussions that morning with Dr Ted Tyne executive director of minerals with the South Australia Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE).

“He assured me that they would give approval, pending some minor feedback,” he said.

“They are intending to give approval over the next couple of weeks.”