Name and Location
Four Mile uranium project, Australia.

Client
The project is a joint venture between Quasar Resources (75%), an affiliate of Heathgate Resources, and Alliance Resources (25%).

Project Description
The Four Mile project has the potential to become the highest-grade and largest operating in situ recovery (ISR) mine in the world. The project is located 550 km north of Adelaide, in South Australia. The deposit is a sandstone-hosted occurrence, defined by two mineralised zones within tertiary sediments – Four Mile East and Four Mile West – which occur within laterally extensive sands 140 m to 210 m deep.

Envisaged as an on-site recovery-style mining operation, with uranium to be captured at Heathgate Resources’ Pannikan satellite plant and elution, precipitation, drying and packing to take place at Heathgate’s Beverley processing plant.

The project is estimated to host a total mineral resource of 9.8-million tonnes, grading 0.33% uranium oxide (U₃O₈) for 71-million pounds of U₃O₈.

Value
A$97.8-million.

Duration
Not stated.

Latest Developments
Construction has begun on the Four Mile uranium project, despite project partner Alliance Resources' opposition to the move.

In October last year, Quasar Resources, which holds a 75% interest in the project, announced its plans to restart development of the Four Mile project, to produce 2.12-million pounds of U₃O₈ by spending A$97.8-million.

Alliance’s share of the spend will total A$24.45-million.

Quasar has suggested a staged start-up to the Four Mile operation, allowing for production rates to be considered before full-scale production facilities are constructed. However, Alliance is of the opinion that the construction of an “appropriately sized” standalone plant will deliver better outcomes for shareholders.

Quasar is expected to provide Alliance with an updated schedule of the activities at Four Mile, including a new projection for first production. First production from the Four Mile East deposit had initially been scheduled for the second quarter of 2013 and from the Four Mile West deposit for the fourth quarter of 2013, but these were moved, owing to delays in securing government approvals.

The state government and the Environmental Protection Authority approved the development in September this year.

The Four Mile project currently has a resource of about 9.8-million tonnes, grading 0.44% U3O8 for 32 000 t, or 71-million pounds of U₃O₈.

Key Contracts and Suppliers
Heathgate Resources (feasibility study); and Adelaide Control Engineering (final optimisation study).

On Budget and on Time?
The project has been delayed, owing to legal disputes between Alliance, Quasar and Heathgate.

Contact Details for Project Information
Alliance Resources tel +61 3 9697 9090, fax +61 3 9697 9091 or email info@allianceresources.com.au.
Quasar Resources, tel +61 8 8110 0500, fax +61 8 8212 5559 or email info@quasarresources.com.au.