Saudi Arabia Project - Khnaiguiyah Zinc-Copper

Please refer to our ASX announcement dated 22 December 2015 for an important update on the Khnaiguiyah mining licence.

Alara – 50%, United Arabian Mining Company (Manajem) – 50%, of Khnaiguiyah Mining Company LLC (KMC)

Geology and Mineralisation

The Khnaiguiyah deposit is hosted within Andesite and Rhyolite volcanic rocks that form part of the Shalahib Formation of the Late Proterozoic Al Amar belt. Sandstone and limestone cliffs lie above the volcanics. The landscape consists of small rocky volcanic domes and shields with vast valleys of sand (sparsely vegetated) and dry seasonal river beds.

At Khnaiguiyah, four separate mineralisation zones have been discovered and been given the nomenclature K1, K2, K3 and K4. Mineralisation is structurally controlled by low angle thrust faults and open folding in which siliceous and carbonate fluids have percolated altering the rock’s appearance, depositing zinc and copper in the form of sphalerite and chalcopyrite.

 Previous drilling of more than 45,000m in approximately 345 RC and diamond drill holes at Khnaiguiyah by BRGM and Ma'aden (Saudi Arabian Mining Company) had outlined substantial Zinc-Copper mineralisation in two zones - Zone 2 and Zone 3 - and significant additional mineralisation in Zone 1 and Zone 4.