07 October 2010
MUSCAT -- Australian mining firm Alara Resources Limited says it has intersected high grade copper and gold at shallow depths in three core holes at its Daris Copper Project in the Sohar area, with the copper and gold occurring within a massive sulphide zone.
The copper gold mineralisation occurs in a typical Cyprus type VMS environment within a relatively unexplored ophiolite sequence, where recent discoveries have highlighted the need for modern and systematic exploration, the company said in a statement.
Alara has acknowledged that much more work needs to be done to build an economically minable quantity of mineralisation, and that such high grades in sulphide zones are unusual for the district and may not be sustainable.
Alara has only tested a strike distance within 70m from an outcropping gossan and therefore the extent of mineralisation along strike may well be limited.
The next step the company proposes is to map all known occurrences and conduct an airborne or ground based EM survey over the project area within the next six months. Once the survey results have been reviewed, a further drilling programme will be planned for the project.
Alara announced in late August 2010 that it had secured rights to acquire up to a 70 per cent interest in the Daris Copper Project.
The investment is the latest in a number of base metals project opportunities Alara is currently pursuing in several countries.
The project currently comprises a licence to explore and develop potential copper ores on a roughly 58,728-hectare concession located in the Samayil Ophiolite belt which extends over 800km.
According to Alara, the concession owner, Al Tamman Trading Establishment LLC (ATTE), is also seeking to renew the licence with mineral rights expanded from copper to include gold, silver and other base metals.
The Samayil Ophiolite belt provides a prospective setting for Cyprus-type VMS copper gold deposits.
In the past, the government-owned Oman Mining Company has produced, mined and treated 14 million tonnes of copper resource at between 1-2 per cent copper from open cut mines at their Lasail, Arja and Baida mines.
More recently, a privately owned Omani company has located a large resource of copper nearby within 50km from the project area.
Under a Shareholders' Agreement entered into between Alara and the concession holder, Al Tamman Trading Establishment LLC, Alara will invest up to a total of $7 million into a new joint venture company, Daris Resources LLC, to gain up to a 70 per cent shareholding.
Alara will have 50 per cent of the JV on incorporation (with the concession owner holding 50 per cent) and will advance $3 million as equity during a 3-year period.
Thereafter, Alara will advance a further $4 million to the JV as a loan convertible into equity in the JV to take Alara's interest to 70 per cent.
Daris Resources LLC will have exclusive rights under a management agreement with the Concession owner to manage, operate and commercially exploit the Concession.
Significantly, Alara is also forming a new joint venture company, Alara Resources LLC (AlaraCo) with Sur United International Co LLC, to identify, secure and commercially exploit other resource projects in Oman.
MUSCAT -- Australian mining firm Alara Resources Limited says it has intersected high grade copper and gold at shallow depths in three core holes at its Daris Copper Project in the Sohar area, with the copper and gold occurring within a massive sulphide zone.
The copper gold mineralisation occurs in a typical Cyprus type VMS environment within a relatively unexplored ophiolite sequence, where recent discoveries have highlighted the need for modern and systematic exploration, the company said in a statement.
Alara has acknowledged that much more work needs to be done to build an economically minable quantity of mineralisation, and that such high grades in sulphide zones are unusual for the district and may not be sustainable.
Alara has only tested a strike distance within 70m from an outcropping gossan and therefore the extent of mineralisation along strike may well be limited.
The next step the company proposes is to map all known occurrences and conduct an airborne or ground based EM survey over the project area within the next six months. Once the survey results have been reviewed, a further drilling programme will be planned for the project.
Alara announced in late August 2010 that it had secured rights to acquire up to a 70 per cent interest in the Daris Copper Project.
The investment is the latest in a number of base metals project opportunities Alara is currently pursuing in several countries.
The project currently comprises a licence to explore and develop potential copper ores on a roughly 58,728-hectare concession located in the Samayil Ophiolite belt which extends over 800km.
According to Alara, the concession owner, Al Tamman Trading Establishment LLC (ATTE), is also seeking to renew the licence with mineral rights expanded from copper to include gold, silver and other base metals.
The Samayil Ophiolite belt provides a prospective setting for Cyprus-type VMS copper gold deposits.
In the past, the government-owned Oman Mining Company has produced, mined and treated 14 million tonnes of copper resource at between 1-2 per cent copper from open cut mines at their Lasail, Arja and Baida mines.
More recently, a privately owned Omani company has located a large resource of copper nearby within 50km from the project area.
Under a Shareholders' Agreement entered into between Alara and the concession holder, Al Tamman Trading Establishment LLC, Alara will invest up to a total of $7 million into a new joint venture company, Daris Resources LLC, to gain up to a 70 per cent shareholding.
Alara will have 50 per cent of the JV on incorporation (with the concession owner holding 50 per cent) and will advance $3 million as equity during a 3-year period.
Thereafter, Alara will advance a further $4 million to the JV as a loan convertible into equity in the JV to take Alara's interest to 70 per cent.
Daris Resources LLC will have exclusive rights under a management agreement with the Concession owner to manage, operate and commercially exploit the Concession.
Significantly, Alara is also forming a new joint venture company, Alara Resources LLC (AlaraCo) with Sur United International Co LLC, to identify, secure and commercially exploit other resource projects in Oman.
By Staff Reporter
© Oman Daily Observer 2010
