Four Mile Uranium Project (25%)

The Four Mile Uranium Project is located 550km north of Adelaide in South Australia. The project contains the Four Mile uranium discovery.

The project is a joint venture with Quasar Resources Pty Ltd (75%). AGS is free carried through exploration. Quasar is an affiliate of Heathgate Resources, owner and operator of the adjacent Beverley uranium mine - Australia's third uranium mine and the only in situ leach mine. Heathgate is the Australian affiliate of US company General Atomics.

The Four Mile uranium deposit, discovered in 2005, is a sandstone-hosted occurrence defined by two mineralised zones within Tertiary age sediments: Four Mile West and Four Mile East, which occur within laterally extensive, reduced sands and silty sands below the water table at 140 to 210m depth.

The initial resource at Four Mile West is 3.9 million tonnes at 0.37% uranium oxide containing 15,000 tonnes (32 million lb) of uranium oxide.

The Four Mile West resource estimate area is ~1km2 and is within a much larger area (~7km2) of potential mineralisation as indicated by broad-spaced drilling and gamma responses.

A major step-out drilling program utilising up to four drill rigs continues at Four Mile East to define the limits of mineralisation with the aim of estimating a mineral resource for part of the Four Mile East deposit during 2007.

Quasar is conducting a concept study to consider the most appropriate mining method and has commenced pegging mineral claims in anticipation of a decision to mine in 2008. AGS anticipates that Four Mile will be amenable to in situ leach mining. The project has support of the South Australian Government.

The project is also prospective for iron-oxide copper-gold mineralisation.