Name and Location
Washihi copper/gold project, Oman.

Client
Alara Resources.

Project Description
The advanced scoping study on the Washihi project, released in October 2014, evaluated three potential development scenarios, combining the Daris and Washihi deposits into an overall hub-and-spoke, broader regional approach centred around a heavy-media separation (HMS) plant.

This is to be followed by a conventional flotation circuit located at the site of the Washihi Joint Ore Reserves Committee- (Jorc-) compliant mineral resource, with contributions from the Daris-East Jorc resource and exploration targets from the Daris 3A-5, Al Ajal and Mullaq prospects/exploration licences.

This previous study focused on a standalone scenario at Washihi and thus did not envision the transportation of ore to an external process plant for toll treatment.

The updated advanced scoping study released in April this year, which supersedes the October 2014 study, evaluated two development options:
a base case involving a two-million-tonne-a-year mining rate, feeding a two-stage crushing and HMS circuit, with enriched ore transported an estimated 370 km to Mawarid’s Lasali copper concentrator plant for toll treatment, and the sale of the product to the adjacent State-owned OMCO copper smelter. This case is based largely on mining inventory within the existing Jorc mineral resources at Washihi, with the addition of high-grade early-stage prospect at Mullaq.
a target case, which expands from the base case using the same infrastructure, but with a longer project life. This case is based on a more substantial increase in the mining inventory sourced from exploration targets within the Washihi project.

Net Present Value/Internal Rate of Return
The base case estimates a net present value, at an 8% discount rate, of $70-million and internal rate of return of 51%. The economics of the longer life target case are materially more attractive, but this information has not been disclosed as per ASX requirements.

Value
The base case option is estimated at $35.87-million.

Duration
Not stated.

Latest Developments
Alara reported in October this year that a feasibility study started on the project in August this year was progressing on time and within budget.

Progress indicated that staged development, as considered in the options and advanced scoping study, had been adopted for mine planning of the 800 000 t/y feasibility study.

While further geotechnical assessment is being conducted, the current pit plan indicates a three-stage mine development, with 9.37-million tonnes of in-pit resources. Washihi aims to deliver 11 years of production. This three-stage pit plan also offers flexibility to mine higher grades in the first seven to eight years.

The prestrip includes considerable soft soil and colluviums. It is proposed that the prestrip material be used to build the 650 m × 650 m tailings dam that will have a total footprint of 850 m × 850 m. No additional material will be needed to build the tailings dam. This will save on earthwork costs.

The low cost of diesel and competitive wage structure in Oman are expected to help maintain a low-cost mining regime.

Process design criteria have been largely confirmed. Assessment of civil, structural and electrical work was expected to be completed by the end of October.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
The feasibility study is progressing on time and within budget.

Contact Details for Project Information
Alara Resources, tel +61 8 6323 5900, fax +61 8 6323 5999 or email info@alararesources.com.