Alara’s Oman mine gains an eight-year runway with audited copper reserves

Eight-Year Reserve Base at Al Wash-hi Majaza

Alara Resources Limited (ASX:AUQ) has put an independently audited eight-year production horizon around its Al Wash-hi Majaza copper mine in Oman, with 7.70 million tonnes of Ore Reserves supporting output of about 1.0 million tonnes of run-of-mine ore a year. All of that reserve is classified as Probable, containing 62.4 kilotonnes of copper and 61.8 thousand ounces of gold on a 100% project basis.

Alara owns 51% of the mine through Al Hadeetha Resources, making its attributable share of the headline reserve approximately 3.93 million tonnes before any other adjustments. The production target is entirely underpinned by Ore Reserves rather than Inferred material, a useful distinction for an operating mine that has already produced commercially since 2024.

Resource Confidence Improves as Tonnage Falls

The mine’s total Mineral Resource stands at 10.23 million tonnes grading 0.78% copper and 0.25 grams per tonne gold, or 79.9 kilotonnes of contained copper and 81.4 thousand ounces of gold. Measured and Indicated material accounts for 10.01 million tonnes, or 98% of the total, including 4.76 million tonnes classified as Measured at a higher 0.95% copper grade.

That confidence upgrade came alongside a smaller reported resource. The 2025 figure was a 13.8 million-tonne Mineral Inventory that was not constrained by reasonable prospects for eventual economic extraction. This year’s estimate applies a conceptual pit shell for the first time, removing 4.60 million tonnes, while mining depletion removed a further 0.90 million tonnes. Exploration added about 0.50 million tonnes, and higher long-term price assumptions added 1.15 million tonnes.

The result is therefore not a like-for-like collapse in geology. It is a more economically constrained statement, with the company also including 0.28 million tonnes of historical stockpiles. Around 77% of the Measured and Indicated resources with open-pit potential converts to Ore Reserves.

Mining Depletion Cuts Reserves by 8%

Ore Reserves declined from 8.38 million tonnes to 7.70 million tonnes, principally reflecting 0.86 million tonnes mined during the financial year. Higher long-term metal prices contributed 0.20 million tonnes and stockpiles added 0.07 million tonnes, partly offsetting a 0.10 million-tonne reduction from practical mine design changes. The new statement follows Alara’s FY26 profit result, which reported 8,071 tonnes of contained copper production and previously cited 7.48 million tonnes of Probable reserves after depletion.

FY26 operating data showed 1.08 million tonnes of ore mined, 1.02 million tonnes processed and a 0.90% copper head grade. Copper recovery reached 88.39%, above the 86.5% recovery assumption used in the reserve model, although the gold recovery assumption of 26.4% remains above the mine’s reported operating range and is flagged for further reconciliation.

Technical Gaps Keep Every Tonne Probable

The reserve has not produced a Proved category. SRK said uncertainty around tailings storage, environmental work and infrastructure helped keep even material derived from Measured Resources in the Probable classification. Tailings storage capacity for the full mine life, potential overlap between a tailings facility and waste dump, geotechnical and water-balance studies, full-scale filtration testing and a costed closure plan still require further work.

The mine plan also extends beyond the current mining licence, which expires on 19 September 2030. Alara said the licence can be extended subject to approval from Oman’s Ministry, while SRK considered there were reasonable grounds to expect renewal. That is not the same as having the renewal secured, and it places a regulatory milestone inside the eight-year production schedule.

Exploration Offers Optionality Beyond the Pit Shell

Near-mine exploration continues along strike to the north-west and south-east, below the current resource and across surrounding targets, but the announcement contains no new Exploration Results or Exploration Targets. A total of 70 post-2016 holes covering about 13,900 metres helped improve resource definition and contributed roughly 0.50 million tonnes to the current estimate.

SRK has recommended testing deeper potential below the current pit shell once grade estimates are updated, alongside improvements to geological domaining and dry bulk-density modelling. The immediate investment question is consequently less about whether Al Wash-hi Majaza has a defined production base, and more about how quickly Alara can resolve the infrastructure, licensing and study work needed to turn that base into a longer and more secure operating runway.