Alara Resources Ltd (ASX:AUQ) has finalised terms to appoint a project management company to supervise and administer the development of the Al Hadeeth Copper Gold Project in Oman.
The proposed agreement covers the entire project period through to commissioning and contract execution is expected to occur this week.
Alara is also currently finalising terms for a 10-year offtake agreement, including pre-payments which may be drawn down during construction and commissioning.
The issuing of the pending mining license remains a significant milestone and catalyst for Alara.
Alara management recently presented to the CEO of the Public Authority for Mining (PAM) and other senior PAM executives.
Feedback from the meeting was positive, and came with an assurance the mining licence approval process would be expedited.
Al Hadeetha Copper-Gold Project: Washihi
Recently, Alara 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 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.
The current total 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.
Oman copper industry developments
Alara continues to explore opportunities for synergy and consolidation of copper assets in Oman.
The Al Hadeetha Copper Gold project provides opportunities that could extend beyond the current project, including potential to serve as a processing hub for other deposits and support development of downstream operations.