Uranium, gold and copper group Alliance Resources has identified further high-grade uranium intersections at the Four Mile uranium prospect in South Australia.

Drilling has identified a significant new high-grade zone of uranium mineralization in the southern area of the prospect.

Seventeen of the 24 holes completed during May intersected significant uranium mineralization, representing an excellent success rate. All of the holes are within the Four Mile East prospect, which is the focus of an intensive exploration program.

Four Mile, 8km west of the in situ leach Beverley Uranium Mine, is part of Alliance's Arkaroola Joint Venture with Quasar Resources. Alliance holds a free-carried 25% interest in this joint venture.

Drilling is continuing at Four Mile East with up to four drilling rigs operational. The aim is to step out drill coverage along a series of east-west and north-south traverses to define the extent of mineralization and underpin an additional, separate resource estimate for the eastern zone.

Alliance and Quasar have announced an initial inferred mineral resource for the Four Mile West uranium deposit of 3.9 million tonnes.

Alliance chief executive officer Steve Johnston says: "The continued success of drilling continues to reinforce the growth potential of the Four Mile project. Of particular note is the intersection of high-grade mineralisation at the Four Mile East deposit. The latest drilling supports the interpretation that the high-grade mineralisation has a north-east orientation, similar to the high-grade zone at Four Mile West."

"Diamond core drilling will begin shortly at Four Mile East targeting these high-grade zones of mineralization to provide core for stratigraphic analysis and metallurgical testing."

Alliance is also developing the Maldon Gold Project in Victoria and exploring for copper-gold at the Warrina Project in South Australia.