Al Hadeetha Copper Project Update
Perth, Nov 27, 2017 AEST (ABN Newswire) - Alara Resources Limited (
ASX:AUQ) (ALULF:OTCMKTS) (Alara or Company) hits major milestones on path toward construction of a 1Mtpa copper concentration plant at the Al Hadeetha Copper in Oman (the Project).
Yesterday, Alara reported the Public Authority of Mining (PAM) had given clearance to the Ministry of Commerce to include mining activities on the commercial registration of Al Hadeetha Resources (see Note 1 below). This important step by PAM is seen as indicative of impending favourable action relative to the issuance of the Project Mining Licence and follows the Ministry of Environment and Climate Affairs granting a "no objection" for the Project earlier this month (see Note 2 below).
Alara announced its maiden Ore Reserve (9.7Mt @ 0.88% Cu and 0.22g/t Au, 0.3% cut-off) for the Project's Washihi deposit in December last year (see Note 3 below). The Ore Reserve is based on the Company's Washihi mineral resource estimate (see Note 4 below) summarized in Table 1 (see link below).
The Project includes three (3) exploration licences (i.e. Washihi, Mullaq and Al Ajal - see Figure 1 below) and entails development of the Washihi deposit by means of a single open pit mine and 1Mtpa processing facility to produce copper concentrates for export to overseas and/or a domestic smelter. The Project has an initial mine life of 10 years and NPV of US$97m (see Note 5 below).
Oman has a history of copper mining that dates back thousands of years. However, the sector has become dormant in recent times as global investment in mineral exploration declined and operating mines were closed. Alara's six year investment into the Al Hadeetha Copper Project looks set to pay off as the Project is developed at a time when the Omani government are taking steps (see Note 6 below) to diversify the Sultanate's revenue streams and reignite the mining sector as a pillar of the Omani economy.
Rising copper prices and these other recent developments bode well for the Project as it moves toward production, with copper supply deficits forecast to further deepen next year (see Note 7 below).
Notes:
1 The Project company, Al Hadeetha Resources, is owned 70% Alara Oman Operations Pty Ltd and 30% Al Hadeetha Investments LLC.70%
2 Refer Alara's ASX Announcement of 2 November 2017
3 Refer Alara's ASX Announcement of 15 December 2016
4 Refer Alara's ASX announcement of 19 September 2016,
5 Based on copper prices ranging from $5,593/t to $7,000/t - refer Alara's Quarterly Activity Report dated 31 January and ASX Announcement of 24 January 2017.
6 Tanfeedh is a government initiative that aims at linking the strategies of the main vital sectors of Manufacturing, Tourism, Transport & Logistics, Mining and Fisheries to each other in order to diversify the national income resources and fulfil the objectives of the Ninth Five Year Development Plan 2016 - 2020. The establishment of Mining Development Oman by Oman's large sovereign wealth funds is another example.
7 ICSG forecast a 105,000 tonne shortfall in 2018
To view figures, please visit:
http://abnnewswire.net/lnk/F9DC90DA
About Alara Resources Limited
Alara Resources Limited (ASX:AUQ) (OTCMKTS:ALULF) is an Australian minerals exploration company with 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, an Advanced Scoping Study on the Daris and Washihi, Mullaq and Al Ajal exploration licences in Oman and a Feasibility Study for the Al Hadeetha Copper Gold Project, Washihi ore reserve. The Company is transitioning to establish itself as a base and precious metals mine development and production company. For more information, please visit: www.alararesources.com
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