Copper Shipments Surge to 946 MT as Alara Advances Oman Drilling Programs

Operational Advances at Wash-hi-Majaza

Alara Resources Limited, through its 51% owned joint venture Al Hadeetha Resources LLC, has reported a significant uptick in copper concentrate production at its flagship Wash-hi-Majaza copper-gold mine in Oman during the December 2024 quarter. The plant's operational availability improved despite challenges with tailings filter press throughput, supported by the implementation of six online stream analysers that enable real-time process adjustments. This has resulted in higher concentrate quality and increased copper metal shipments, with five shipments totaling 946 metric tonnes of copper and nearly 30 kilograms of gold dispatched in the quarter.

Exploration Momentum: Drilling and New Concessions

In parallel with production gains, Alara's joint venture has initiated a diamond drilling program at the Al Washi-hi mine, targeting up to 7,000 meters of combined infill and step-out drilling to expand the current resource base. Four holes have been completed to date, with results eagerly anticipated. Additionally, the JV formalized its position in the region by signing the Block 22B concession agreement with the Omani Ministry of Energy and Minerals, a strategic move that expands Alara's exploration footprint in Oman.

Promising Early Results from Block 8 Exploration

Exploration activities at Block 8, conducted by Power Metal plc under a joint venture agreement, have yielded encouraging initial results. Rock chip and float samples returned significant copper grades, including a 4.46% copper outcrop sample and a 1.75% copper malachite float sample within 2 kilometers of the Al Maider prospect. These findings highlight the potential for a substantial copper deposit in a previously underexplored area. The exploration program has included stream sediment sampling, geological mapping, trenching, and preparatory work for geophysical surveys, all aimed at refining drill targets and advancing the project.

Challenges and Capital Strategy

Despite operational and exploration progress, Alara faced a setback when its November 2024 rights issue, intended to raise approximately $15 million, was discontinued following shareholder proceedings before the Takeovers Panel. The dispute centered on concerns about potential changes in shareholder control. As a result, Alara is exploring alternative avenues to secure capital, including funding for critical equipment such as the permanent tailings filter press at the Wash-hi plant. The company maintains a strong cash position with nearly $9.8 million in cash and access to financing facilities totaling over $7 million.

Outlook and Next Steps

Looking ahead, Alara plans to continue copper-gold concentrate production at Wash-hi-Majaza, release interim drilling results from the Al Wash-hi expansion program, and commence exploration activities at the newly awarded Block 22B concession. Power Metal is expected to advance exploration at Block 8, with further assay results anticipated. These developments position Alara to potentially enhance its resource base and operational scale in Oman, aligning with its ambition to become a mid-tier minerals producer.