Mining lease application submitted for Four Mile

20 May 2008

Quasar Resources has submitted an application for a mining lease for the Four Mile uranium project in South Australia. Beverley Four Mile comprises two deposits 5-10 km northwest of the Beverley mine and is being explored by Quasar Resources. Alliance Resources is a 25% free carried joint venture partner in the Four Mile Uranium Project. Quasar Resources is an affiliate of Heathgate Resources, which owns and operates the Beverley mine. Output from Four Mile would be processed at the Beverley mine. Mike Rann, South Australia's premier, welcomed the mining lease application. He said, "South Australia is a step closer to having a new world-class uranium mine." He noted, "I understand the company is seeking to break the record for the time between the discovery of the resource in 2005 and production by having an operating mine by early 2010." Rann added, "Although the mine size is not as big as the proposed Olympic Dam expansion, the grade of the uranium is ten times higher than the uranium found at Olympic Dam, which is good news." Last month Quasar announced that, in the light of recent "outstanding exploration success," it had decided to fast track the Four Mile project. At that time, the company said the first stage of mining will commence as soon as a lease is granted, probably in late 2009.

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