Khnaiguiyah Zinc-Copper (Saudi Arabia)
(Alara - 50%, United Arabian Mining Company (Manajem) – 50%, of Khnaiguiyah for Mining Company LLC (KMC))
Background
Alara has a 50% interest in the advanced Khnaiguiyah Zinc-Copper Project located in Saudi Arabia via a 50% shareholding interest in a newly formed joint venture company, “Khnaiguiyah for Mining Company” (KMC).
The Khnaiguiyah Project is an advanced near production project having a non–JORC compliant resource estimate assessed by BRGM , the French Office of Geological and Mining Research, prepared for the Saudi Arabian Directorate General of Mineral Resources, in 1993 as follows:
“In-place minable reserves” of 10.23Mt containing 7.46% zinc and 0.80% copper at a cut off grade of 4% zinc, within a “drill measured resource” of 24.8Mt at 4.11% zinc and 0.56% copper.
Definitive Feasibility Study (DFS)
Work on the Definitive Feasibility Study for the Khnaiguiyah Project commenced in March 2011 and completion of the DFS is expected in Q1 2012
KMC has appointed Australian firm, Ausenco Services, as lead engineers for the (DFS).
Ausenco will be assisted by a number of specialist sub-consultants in areas such as geology and resource estimation (CSA Global), metallurgical test work, mine planning (CSA Global), hydrogeology (SMEC) and environment (SMEC).
Drilling and Mapping
The Company commenced a drilling programme at the Khnaiguiyah Project in March 2011 as an integral component of the Project DFS.
This 5000m, 40 drill hole programme was designed to build upon extensive historical drilling of over 45,000 meters in 345 RC and diamond drill holes conducted within the Project over the last 40 years. The programme has 4 components:
- Procuring of samples for Metallurgical Test work;
- Resource validation holes;
- Procuring of samples for Geotechnical analysis; and
- Resource extension holes.
Step-out drilling to the south-east of Mineralised Zone 3 (the major mineralised body of the Project) has already extended the mineralisation beyond historically outlined parameters by approximately 50m, with exceptionally high thickness of zinc mineralisation starting at a relatively shallow depth of 44m from the surface.
Geological mapping of Mineralised Zone 2, which lies approximately 1km from Mineralised Zone 3, has indicated that the host rock of Mineralised Zone 2 extends by at least 600m to the north at which point it disappears beneath recent sediments.
The current drilled area of Mineralised Zone 2 is approximately 700m by 200m. The mapping of this additional host rock indicates potential for further significant resource delineation at Mineralised Zone 2.
For the latest updates on the progress of the Khnaiguiyah Project DFS, refer to:
