Alliance Resources (ASX:AGS) has announced it now expects to find 11 to 14 million mineralized tonnes of ore at its Four Mile uranium project in South Australia. As the expected average grade is 0.27-0.3% U3O8, this would mean the Northeast zone of the project would contain 70-80 million pounds of uranium which would be a huge boost.
This is a positive evolution since the previous exploration target was announced and this is mainly due to the fact that a more dense drill spacing allowed more mineralized zones to be included in the resource estimate. Keep in mind Alliance only owns a 25% stake in the project but adding an attributable resource of 20 million pounds of uranium could add some value to Alliance’s current market capitalization of A$32M.
> Click here to go to Alliance’s website
Disclosure: The author holds no position in Alliance Resources. Please see our disclaimer for current positions.
