A scoping study will be undertaken on the promising Four Mile uranium deposit in South Australia following the release of an inaugural resource announcement.

Uranium, gold and copper group Alliance Resources received a boost from the announcement regarding the Four Mile prospect that is part of its Arkaroola Joint Venture with Quasar Resources Pty Ltd.

Alliance has been advised by Quasar that it has appointed an engineering and environmental consultancy firm to determine the best options to prepare for developing the project.

Alliance holds a 25% interest in the Arkaroola Joint Venture with Quasar holding a 75% interest and managing the project. The Four Mile prospect, regarded as Australia's most substantive uranium discovery since 1985, is within the joint venture some 8km west of the Beverley Uranium Mine operations.

A major resource drilling program has recently been completed at Four Mile West to determine the size and grade of the higher-grade mineralisation in the western portion.

Alliance CEO Steve Johnston says: "We have been advised by Quasar that the mineral resource estimate for the higher-grade mineralisation at Four Mile West is well advanced, with drilling continuing on the large, lower-grade Four Mile East deposit.

"Highlighting its commitment to the project, Quasar has commissioned a consultancy firm to conduct a Scoping Study following the release of the inaugural resource estimate. Once underway this study is expected to take about eight weeks to complete and will lay the foundations for a Pre-feasibility Study to assess in detail mining and infrastructure options, engineering and process options, and to progress environmental and other approvals."

Quasar has indicated that at a relatively early stage during this work a formal application for Mining Leases will be submitted and a referral made under the Commonwealth's Environment Protection and Biodiversity Conservation Act. The joint venture is planning for much of this work to be completed during 2007.

Steve Johnston says: "We are very encouraged by these developments and by the separate announcement by the Premier of South Australia supporting the development of the Four Mile Uranium Project. The Four Mile discovery is potentially the State's largest undeveloped mineral project. Its development will be of strategic importance to the State and, of course, to the Arkaroola Joint Venture partners.

"The joint venture is committed to expediting development of this major uranium project as rapidly as possible, particularly in light of the strength of demand for uranium and the positive price and market outlook."

Alliance Resources is an Australian uranium, copper and gold explorer, with a portfolio of quality base and precious metal projects in highly-prospective regions of central and eastern Australia.