Alliance Resources Limited announced an update of exploration activities at its Nepean South nickel-gold project in Western Australia's Eastern Goldfields. The Project is located 26 km southwest of Coolgardie and captures the interpreted southern extension of the ultramafic sequence hosting the Nepean Nickel Mine. The project is prospective for both komatiitic-hosted nickel sulphide deposits and greenstone-hosted orogenic gold deposits. A broad area of gold-in-soil anomalism has been identified in the northwest of the auger soil survey area and approximately 4km southwest of the Nepean Mine. The main gold anomaly (>5.5ppb) is approximately 1,100m in length, has a variable width up to 900m and is open the north. Following a detailed literature review of the existing geological data, it was revealed that historic Metals Exploration percussion hole MLX005 (6,546,600mN /317,150mE) returned 19.8m @ 0.37 g/t Au from 10.7m to EOH, including 4.6m @ 1.0 g/t Au from 25.9m to EOH. Alliance completed a 156 sample orientation auger soil survey on three 400m x 50m spaced lines in areas of interpreted shallow transported cover and analysed for gold and base metals. The objective of this orientation survey was to determine the effectiveness of using auger soil sampling as an exploration tool across areas of known ultramafic rock and gold in regolith anomalism, including over MLX005. Whilst the effectiveness of this sampling technique was variable and no gold in soil anomalism was returned over MLX005 in the east of the survey area, broad gold-in-soil anomalism in the northwest justified a second phase of auger soil sampling to infill the sample spacing to 200m x 50m and extend the survey area to the north (247 samples). A third phase of auger soil sampling is planned for January 2017 to infill gold anomalism to a 50 metre by 50 metre spaced grid and extend the survey area to the north with 2 x 200m spaced lines (624 samples). Subject to results, planned work will consist of aircore drilling to vector towards the primary source of gold.