Uranium, gold and copper group Alliance Resources has recorded additional high-grade uranium intercepts from the Four Mile East prospect held in joint venture with Quasar Resources.

The new high-grade intersections from 37 holes follow a series of excellent results recorded during an ongoing step out drilling program utilizing up to four drill rigs.

The latest results include: 3.1 metres @ 0.44%; 1.9 metres @ 0.50%; 2.7 metres @ 0.34%; 1.0 metres @ 0.69%; and 1.7 metres @ 0.39%.

In addition to the succession of high-grade results, drilling has extended the strike length of a high-grade mineralized zone at Four Mile East to in excess of 900 metres. The zone remains open to the north-east and south-west.

Several mineralized zones have been intersected at Four Mile East, with modelling suggesting the identified high-grade zone is oriented to the north-east, similar to a high-grade zone confirmed by Alliance and Quasar at the Four Mile West prospect. Results received from the intensive drill program confirm this model.

Alliance chief executive officer Steve Johnson says: "Drilling is focussing on one of these higher-grade zones with the aim of defining a resource.

"This project has substantial scope and our larger regional program has the potential to deliver either Four Mile and/or Beverley-style mineralization."

Earlier this year, Alliance and Quasar announced an initial inferred mineral resource for the Four Mile West deposit of 3.9 million tonnes at 0.37%.

Alliance and Quasar have also moved closer to project development, starting mineral claim pegging in preparation for mining lease applications.

Initial drilling has also been completed at a new prospect 11km to the north- east of the Four Mile East deposit. This prospect is located along a trend, which has returned significant intersections on an adjoining tenement held by Heathgate Resources and Giralia Resources.

The Four Mile project is 8km west of the in situ leach Beverley Uranium Mine in South Australia and forms part of Alliance s Arkaroola Joint Venture with Quasar. Alliance holds a free-carried 25% interest in the joint venture, with Quasar holding 75%.