Alara Resources Ltd (ASX:AUQ) has updated its total JORC resource by 14% for the Washihi copper-gold deposit located within the 70% owned Al Hadeetha copper-gold project in Oman.
The indicated resource has increased by 81% to 12.39 million tonnes at 0.89% copper and 0.22 g/t gold.
Furthermore, new shallow gold mineralisation named Gossan has been defined outside Washihi adding an inferred resource of 0.31 million tonnes at 0.51 g/t gold.
These results further bolster the strategic positioning of the Al Hadeetha Project having the single largest volcanogenic massive sulphide (VMS) type JORC copper and gold resource in Oman.
The project remains on track to commence construction early next year, subject to the Public Authority for Mining formally issuing a mining licence for the Washihi site.
Background
Alara has a portfolio of projects in the Middle East and was focused on an infill drilling program during the June quarter at the 70% owned Al Hadeetha Copper-Gold Projects in Oman.
The company has completed an advanced scoping study on both the Daris and Al Hadeetha Copper-Gold Project in Oman.
It has also completed a feasibility study for the Washihi deposit within the Al Hadeetha project.
The company has completed a definitive feasibility study on the Khnaiguiyah Zinc-Copper Project in Saudi Arabia, which is the subject of legal proceedings.
The company is transitioning to establish itself as a base and precious metals mine development and production company.
Al Hadeetha Copper-Gold Project: Washihi
The Washihi JORC Resource estimates have been updated to comply with the 2012 code and are now being revised to incorporate the results of the recent drill program.
The current Washihi resource contains 16.1 million tonnes at 0.86% copper and 0.22 g/t gold.
Washihi’s Indicated Resource of 12.39 million tonnes at 0.89% copper and 0.22 g/t gold can be converted into a Reserve only after a mining licence is issued.
The Washihi mining licence application was first submitted in April 2013 and remains pending.
Project management proposals to bring Washihi into operation are currently being assessed with contract awards expected in the last quarter of the year.
Analysis
The 14% increase to the total JORC resource at Washihi and discovery of Gossan supports project economics as Alara progresses towards construction and operations early next year.
The resource remains open and is already the single largest JORC copper deposit in Oman.
Furthermore, Oman has been taking steps to support the country’s mining industry with the government promoting and prioritising its development.
Mining Development Oman has been capitalised with A$200 million and plans to raise a further A$130 million through IPO on Oman’s stock exchange before the end of the year.
Late last year the Public Authority for Mining in Oman submitted a draft of the new mining law for approval by relevant ministries.
The new law is expected to help attract investment to develop the mining sector into a major contributor to the country’s gross domestic product.
Shares in Alara are trading up 50% year to date, currently priced at $0.02.
Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.