Alara Resources (ASX: AUQ) has received positive assays from drilling at its Washihi Copper-Gold Joint Venture Project in Oman which show a substantial copper discovery.
The news saw shares rise 26% today to an intra-day high of A$0.315 on the exchange of 1.1 million shares by 3.48pm (AEST).
These recent results indicate the potential for the Washihi Project to be a major copper-gold discovery.
Drilling results provide further visibility around the potential project size and economics of the project.
One drillhole intersected 112 metres at 0.78% copper and 0.11 grams per tonne (g/t) gold from 113 metres, including 67 metres at 1% copper.
Drilling confirms a larger system than previously envisaged from earlier holes, now confirmed over 600 metres strike.
Other highlights from this round of drilling include 72 metres at 1.3% copper and 0.15g/t gold from 160 metres, 18 metres at 1.4% copper and 0.21g/t gold from 62 metres, and 40 metres at 0.6% copper and 0.21g/t gold from 52 metres.
The four holes are all located within the magnetic anomaly which indicates the potential for extensive sulphide mineralisation open to the northwest, southeast and at depth.
The mineralised zone lies within the magnetic low which extends for a strike distance of about 1600 metres and has an average width of around 250 metres.
The new results build on previous notable mineralised zone intersections within the anomaly
of 72 metres at 1.3% copper and 0.15g/t gold, 18 metres at 1.4% copper and 0.21g/t
gold, and 40 metres at 0.6% copper and 0.21g/t gold from 52 metres.
Oman copper-gold
The Oman Copper-Gold Projects are located in a region with several examples of VMS copper deposits in the Ophiolites and close to a nearby copper smelter.
Alara is targeting 3.2 to 5 million tonnes at 0.8-1.% copper and 0.3 to 0.5g/t gold in the region.
The company has begun a Scoping Study for a 500,000 tonne per annum throughput mining and beneficiation at Washihi.
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