The Asia Miner

JAN-FEB 2017

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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Page 101 of 103

100 | ASIA Miner | Volume 14 • Issue 1 | 2017 Exploration ALARA Resources has increased the to- tal JORC-compliant resource by 14% for the Washihi copper-gold deposit within the Al Hadeetha project in the Sultanate of Oman. The indicated resource has in- creased 81% to 12.39 million tonnes @ 0.89% copper and 0.22 grams/tonne (g/t) gold. There are also 3.7 million tonnes in the inferred category @ 0.79% copper and 0.23 g/t gold. Alara defined new shallow gold min- eralisation at Gossan prospect, outside Washihi, which added 310,000 tonnes @ 0.51 g/t gold to the inferred estimate. Alara updated the Washihi resource es- timates to comply with the JORC 2012 code and the revision incorporates results of a recent drilling program. The company has also announced a maiden Al Hadeetha ore reserve esti- mate, prepared by Mining Focus Con- sultants based on a 0.3% copper cut-off and using a feasibility study prepared in 2015-16. It stands at 9.7 million tonnes @ 0.88% copper and 0.22 g/t gold. The reserves bolster the strategic posi- tioning of Al Hadeetha having the single largest volcanogenic massive sulphide (VMS) type JORC copper and gold re- source in Oman. Alara's managing director Justin Richard said, "Following the upgrade of the Washi- hi copper-gold resource statement and in light of recent feedback from the Mining Authority, Alara is pleased to confirm an ore reserve for Al Hadeetha, underpin- ning a 1 million tonnes per annum copper concentration plant over an initial 10 year mine life." The project, which is about 120km southwest of the capital Muscat, remains on track to commence construction this year, subject to the Public Authority for Mining formally issuing a mining licence. The application was submitted in April 2013 and remains pending. The indicated resource can be converted into a reserve only after the licence is issued. Al Hadeetha includes three exploration licences - Washihi, Mullaq and Al Ajal - and entails development of the Washihi deposit by means of an open pit mine and processing facility to produce copper concentrates. Alara has completed an advanced scoping study on the Daris and Al Ha- deetha projects in Oman, and a feasibil- ity study for the Washihi deposit within Al Hadeetha. It has also completed a de- finitive feasibility study on the Khnaigui- yah Zinc-Copper Project in Saudi Arabia, which is the subject of legal proceedings. VENTNOR Resources will undertake follow-up diamond drilling to test copper-nickel anomalies at Fire Dragon prospect in the Biran- up project area in Western Australia. The program follows a two hole Reverse Circulation (RC) program in late 2016 following up two targets generated from a Moving Loop Electromagnetic (MLEM) survey. Biranup is 370km northeast of Kalgoorlie, near the Tropicana Gold Mine of AngloGold Ashanti and Independence Group. The RC drilling was designed to test the MLEM defined anomalies for the presence of magmatic copper and nickel mineralisation. The purpose was to determine the nature of the very strong conductor that had been identified and to allow better understanding of base- ment rocks below 80 metres of transported sands. Assays have confirmed that the semi-massive to massive sulphide zones intersected are associated with peak copper, nickel and co- balt values and are anomalous, when compared to the background values in the rest of the holes, by an order of magnitude. Selected chips were sent to A & A Crawford Geological consul- tants in Tasmania, to determine the nature of the host rock and origin of the sulphides. The analysis indicates that the host rocks are of the right type and origin to generate a magmatic base metals deposit. In addition, a down hole electromagnetic survey (DHEM) was attempted on the two RC holes to better determine the best tar- get to test the conductor but the PVC casing that was installed become blocked, which precluded successful testing of the lower sulphide-rich zones. While the survey crew was onsite additional MLEM lines were sur- veyed. This data has allowed for better modelling of the conductor and generation of a new drill target. The eastern line has confirmed an additional conductor that requires further surveys. Ventnor has mobilised a multi-purpose RC and diamond drill to site to drill an RC pre-collar with a diamond tail to drill deeper down the conductor and generate core. This will allow for better under- standing of the host rocks and will intersect the strongest conduc- tive area. The hole will be cased with PVC to undertake a DHEM survey, and if possible, the two RC holes will have the PVC re-in- stated to be included. Follow-up diamond drilling at Biranup Drilling leads to Washihi resource increase Alara Resources' Al Hadeetha project in Oman comprises the Washihi, Mullaq and Al Ajal explo- ration licences.

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