Todays Age reported:
http://www.theage.com.au/news/business/alliance-uranium-milestone/2007/05/08/1178390303409.html
Alliance uranium milestone
Barry Fitzgerald
May 9, 2007
FOUR Mile might be the best uranium discovery in more than 20 years but initial confirmation that it's something special did nothing for the share price of Alliance Resources, the locally listed 25 per cent partner with US group Heathgate in the outback South Australia discovery.
The long-awaited initial resource estimate of 15,000 tonnes of contained uranium oxide has an in-the-ground value at present uranium prices of more than $4.4 billion and according to the partners, it lays the foundations for Four Mile's eventual development.
But the failure, initially at least, by Alliance to convince the market that the initial resources estimate was exactly that, forced a sell-off in Alliance shares. The stock closed 51 ¢, or 18 per cent, lower at $2.34. Alliance was a 24 ¢ stock in June last year.
Its run since was based on expectations that Four Mile would eventually shape up as a 50,000 tonne-plus uranium find.
While there was nothing in yesterday's announcement to discourage those expectations, traders in the stock thought it was time to take some profits ahead of the much bigger resource being confirmed.
Alliance said that it was "important to emphasise that the area of approximately one square kilometre covered by the resource statement was within a much bigger area of more than five sq kms of potential mineralisation" which had been demonstrated by broad-spaced drilling.
"This highlights the potential for the Four Mile project to continue to develop as one of the most significant uranium discoveries in recent exploration history in Australia," the company said.
Alliance said that the $4.4 billion in-ground value of initial resources estimate for Four Mile highlighted its significance as the "most substantive uranium discovery in Australia since 1985 (which was Olympic Dam, now 1.7 million tonnes)."
The initial resource estimate covers just a western portion of the Four Mile discovery, so named because it is less than eight kilometres west of Heathgate's in-situ leach Beverley uranium mine.
http://uxc.com/review/uxc_prices.aspx