Saudi Arabian focused Alara Resources (ASX: AUQ) is continuing its intensive drill program at the Khnaiguiyah Zinc-Copper Project with five drilling rigs turning, with four core drill rigs and one reverse circulation rig.
It has received assay results from drilling in Zone 3 at the Khnaiguiyah Zinc-Copper Project.
The project is an advanced near production project having a non–JORC compliant resource estimate assessed by BRGM, the French Office of Geological and Mining Research.
The resource estimate in 1993 consisted of “In-place minable Reserves” of 10.23 million tonnes containing 7.46% zinc and 0.80% copper at a cut off grade of 4% zinc.
Best results from recent drilling by Alar at the Zinc rich zone included:
- From 62-73 metres: 11 metres at 5.05% zinc and 0.13% copper including 67–73 metres: 6 metres at 7.41% zinc and 0.23% copper
- From 110-112 metres: 2 metres at 7.27% zinc and 0.22% copper including 111–112 metres: 1 metres at 12.25% zinc and 0.38% copper
Alara has drilled over 169 holes for approximately 23,534 metres to date. The Khnaiguiyah Project has a Mining Licence (granted), 2 Exploration Licences and 5 Exploration Licence Applications covering 380 square kilometres.
Alara’s Definitive Feasibility Study (DFS) is scheduled for completion in first quarter of 2012 is building on a considerable amount of previous work.
The PFS completed in the 1990’s revealed the Khnaiguiyah Zinc-Copper project was commercially viable at a price for zinc of US$1,200 per tonne – considerably lower than today’s price of US$1,900 per tonne.
Alara had cash of $28 million at the end of the September quarter.