Initial results from the in-fill drilling has discovered more high grade copper and gold mineralisation including 5 metres at 3.29% copper, 5.04 g/t gold, 0.22% zinc and 21.72 g/t silver.
These drill holes have confirmed the expected continuity of copper mineralisation and a new massive sulphide intersection within the Washihi deposit.
The current Washihi resource contains 14.1 million tonnes at 0.80% copper and 0.18 g/t gold.
Alara has submitted a mining licence application covering the Washihi deposit, which has passed a number of approval stages.
Al Hadeetha Copper-Gold Project
Alara holds a 70% stake in the Al Hadeetha Copper-Gold Project through a joint venture with Al Hadeetha Investment Services.
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.
Al Hadeetha is comprised of 3 exploration licences totalling 105 square kilometres.
Applications are currently 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.
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.
The study forecast the project would generate an internal rate of return of 21% with a A$66.6 million capex cost.
A 3 hole infill drill program is currently ongoing at Al Hadeetha to increase the size of the resource within the Indicated category.
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.
Alara has a portfolio of projects in the Middle East, and recently 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.
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.
The key near term catalysts for Al Hadeetha are:
- Assay from 2 remaining in-fill holes;
- Granting of the mining licence application;
- Securing of project finance; and
- Resource upgrades through the current ongoing infill drill program.
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