A feasibility study at Al Hadeetha was recently completed and found the project would return free cash flow of A$109.5 million over 10 years in a conservative base case scenario.
Al Hadeetha contains a JORC compliant resource of 14.1 million tonnes at 0.80% copper and 0.18 g/t gold.
An infill drilling program is currently in progress at Al Hadeetha with the first results expected next week.
Alara has submitted a mining licence application covering the deposit, which has passed a number of approval stages.
Al Hadeetha Copper-Gold Project
The Al Hadeetha Copper-Gold Project is held in a 70/30 joint venture with Al Hadeetha Investment Services.
Al Hadeetha is comprised of 3 exploration licences totalling 105 square kilometres.
Applications are pending for 3 mining licences totalling 5.5 square kilometres.
The project is based around the Washihi copper-gold deposit, which contains a JORC resource of 14.1 million tonnes at 0.80% copper and 0.18 g/t gold.
The findings of a feasibility study on Al Hadeetha were released in April and concluded the project would generate an internal rate of return of 21% with a A$66.6 million capex cost.
An infill drill program is currently ongoing at Al Hadeetha to increase the size of the resource within the Indicated category. Drilling is expected to continue into June.
The Washihi mining license application recently received approvals from the Ministry of Housing and Ministry of Water and Electricity as part of the overall process.
Joint venture partner
Alara's partner, Al Hadeetha Investment Services, are associated with the well-known Al Naba group, owned by Sayyid Khalid Al Busaidi and his family.
Alara has a portfolio of projects in Saudi Arabia and Oman.
Alara has completed a definitive feasibility study on the Khnaiguiyah Zinc-Copper Project in Saudi Arabia.
It has also completed an advanced scoping study on the Daris and Al Hadeetha Copper -Gold Projects in Oman.
Most recently it completed a feasibility study for the Washihi deposit within the Al Hadeetha project.
The company is transitioning to establish itself as a base and precious metals mine development and production company.
The feasibility study completed for the Washihi deposit within the Al Hadeetha project has proven it to be economic in a base case scenario using conservative forecasts.
Alara shares are trading strongly, up 100% year to date, currently trading at $0.026 per share.
The potential to further expand the existing resource base remains likely.
Alara has identified untested large and significant geophysical anomalies similar to that at the Washihi deposit.
The key near term catalysts for Al Hadeetha are:
- granting of the mining licence application;
- securing of project finance; and
- resource upgrades through the current ongoing infill drill program.
At the end of the March quarter, the company has $1.7 million in cash.
Developments in Oman have created a favourable environment for the Al Hadeetha project.
The Sultanate of Oman is fast tracking its strategy of greater economic diversification and lessened dependence upon oil revenues.
Recently, Oman's largest sovereign wealth fund, announced plans to establish a venture to invest in the mining industry.
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