Alara Resources (ASX:AUQ) has announced a maiden JORC Resource of 26.4 million tonnes at 3.9% zinc and 0.12% copper along with 7 million tonnes at 0.8% copper at its Khnaiguiyah Zinc-Copper Project in Saudi Arabia.
The company said the resource could underpin a 1 to 1.5 million tonne per annum throughput zinc and copper mine for at least 10 years.
Further upside is expected from drilling activity that was carried out after the cut-off date for completion of this estimate.
This has extended mineralisation for Zone 1 by 600 metres. This extension is about 100 metres wide, 10 metres thick and still open to the south.
Mineralisation in this zone is general shallow and may be amenable to mining at a lower strip ratio than in Zones 2 and 3.
The drilling has also extended mineralisation in Zone 2 by a further 400m to the northeast.
Khnaiguiyah includes 4 mineralised zones located within 1 or 2 kilometres from a central area that have been discovered and drilled to date. The zones are about 3 kilometres apart from each other.
The resource estimate was produced as part of the definitive feasibility study being carried out by the joint venture, which is forecast to be delivered to the market before the end of 2012.
The project comprises a granted mining licence, two exploration licences and five exploration licence applications which cover 380 square kilometres.