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 could 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 sandstone-hosted deposit is 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 0.44% uranium oxide (U3O8) for 71-million pounds of U3O8.

The project is expected to produce about 2.12-million pounds of U3O8.

Value
A$97.8-million.

To date, about A$120-million has been invested in the project.

Duration
South Australian Premier Jay Weatherill officially opened the Four Mile uranium mine on June 26, 2014.

Latest Developments
Alliance Resources has taken its grievance with project partner Quasar Resources to the Australian Supreme Court, to gain control of its share of production from the Four Mile uranium mine.

Quasar (has passed)? the 2015 programme and budget, entailing the production of 2.64-million pounds of uranium concentrates and a cash expenditure of $107.75-million, of which Alliance is expected to contribute $26.93-million.

Alliance has expressed its concern about Quasar’s intent to stockpile the Four Mile uranium production from the 2014 and 2015 work programmes, thereby not generating any revenue during 2015.

Alliance has said that it has now, through its wholly owned subsidiary Alliance Craton Explorer, terminated Quasar’s appointment as sales and marketing agent for the company’s share of the Four Mile product. It has also instituted proceedings in the Supreme Court seeking a declaration that the termination is valid, and an order that Alliance’s share of the product be delivered to the company.

Alliance points out that about 510 000 lb of uranium ore concentrate has been shipped to a converter in Ontario, with the company estimating the value of its share of the concentrate to be more than A$6-million at the current prices and exchange rates.

“Alliance directed Quasar to sell its share of product at the best price available. Quasar has refused to comply with that direction,” the company says.

Alliance has said that its action against Quasar has been taken in the interest of protecting the company’s financial position, adding that the proceeds raised from the sale of the Four Mile product will be used to fund the future costs associated with the project.

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.