Alara Resources Ltd eyes major catalyst in issuance of mining licence
Date
9/29/2016 2:32:50 AM
(MENAFN- ProactiveInvestors - Australia) Atmavireshwar (AV) Sthapak (Alara Director & Senior Geologist) meeting with government officials to review the mine layout at the Washihi site
Alara Resources Ltd (ASX:AUQ) owns a 70% interest in the Al Hadeetha project which hosts the largest JORC copper deposit in Oman.
Last week, news source, Times of Oman indicated the Public Authority for Mining could be about to issue some more licences.
The issuing of a mining license is set to be a significant milestone and catalyst for Alara.
The company plans to start commercial production of copper concentrate by the first quarter of 2018 subject to the issuance of a mining licence.
The Oman government is seeking to development the sector and have capitalised a new company with A$200 million to invest in and support the development of mining projects in the country.
Press coverage in Oman
Two articles by Times of Oman were released simultaneously last week titled:
- Oman plans to offer some more mining blocks for development; and
- Al Hadeetha plans to start commercial production from Washihi mine by early 2018.
Mohammed bin Salem Al Battashi, director of research and geological surveys department at the Public Authority for Mining was quoted saying:
'It is under processing right now. Sooner or later it will be announced and these blocks are spread in different parts of Oman”.
'The investment climate in the mining sector is very promising. Oman is rich in mineral deposits. The demand for mineral locations is very high.”
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.
Project management proposals to bring Washihi into operation are currently being assessed with contract awards expected in the last quarter of the year.
Oman supporting mining
Oman has been experiencing some extraordinary events with the government promoting and prioritising the development of the mining industry.
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.
A government agency known as National Programme for Enhancing Economic Diversification (Tanfeedh) has been created to ensure the Sultanate continues to diversify its economy.
One of the five sectors being targeted by Tanfeedh is mining. Alara executives are scheduled to meet with Tanfeedh in the coming week.
The mining sector is also preparing for an international mining and minerals conference, to be held in Muscat in January.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.