MUSCAT -- Australian minerals development and exploration firm Alara Resources Limited (Alara) has announced that it has secured rights to acquire up to a 75 per cent interest in Pilatus Resources Oman LLC (Pilatus) which currently holds three Exploration Licenses in the Samayil Ophiolite of Oman.
The licenses cover 80 square kilometres over the prospective Al Ajal, Washihi and Mullaq Copper-Gold Project areas. These prospects are located on the Samayil Ophiolite belt which hosts Cypress type VMS deposits. The three license areas are approximately 80-160km east and southeast of Alara's Daris Copper-Gold Project (Block 7)1 and Awtad Copper-Gold Project (Block 8)2.
This project is the third (after Daris Block 7 and Awtad Block 8) of a number of copper-gold opportunities Alara is currently pursuing in Oman. The company will target mineralisation based on previous drilling and geophysics of 2.5 million tonnes at 1.3 per cent copper equivalent to 4.5 million tonnes at 1 per cent copper equivalent (which includes gold credits) across the existing areas of drilling within the three licence areas.Further potential for mineralisation remains open laterally and at depth within the broader licence areas. At the Al Ajal prospect significant drill results include 12 metres at 3.3 grams per tonne (g/t) gold and 1.9 per cent copper. At the Washihi Prospect zones of massive sulphides have analysed up to 8.18g/t gold, 3.78 per cent copper, 16.83g/t silver and 0.70 per cent zinc.
Historical drilling at the Mullaq prospect adjacent to Washihi has also identified significant mineralisation ranging from 1.4 per cent to 16.06 per cent copper.
Alara Oman Operations Pty Limited (a wholly owned subsidiary of Alara) entered into a Shareholders Agreement with the concession holder, Pilatus Resources Oman LLC and the existing shareholders of Pilatus.
Alara will secure an initial 10 per cent shareholding interest in Pilatus by contributing $1 million equity capital into the joint venture company. Alara will then fund on-going exploration, evaluation and development costs. Upon Alara advancing a further $3 million into Pilatus during a period of up to 4 years, it will be entitled to increase its shareholding in the JV to 60 per cent.
© Oman Daily Observer 2011
