Oman?s Al Hadeetha Resources LLC has signed an MoU with mining company Mawarid Mining LLC to process one million tonnes of copper and gold ore from the Washihi deposit in north Oman
Al Hadeetha Resources LLC is a joint venture (JV) between Alara Resources and Al Hadeetha Investments LLC, which owns the Washihi deposit.
The Washihi deposit is the largest copper resource in the sultanate, comprising three exploration licences that cover 80 sq km. According to the MoU, both companies will work together to formulate a plan to develop the copper-gold deposit, and eventually process one million tonnes per annum (mtpa) of ore.
According to Alara Resources, the copper-gold ore would be mined, crushed and processed through a heavy media separation (HMS) plant proposed to be built on site. The upgraded ore will be treated at the Lasail copper processing plant under a toll arrangement.
The defined toll treatment period is five years with an extension, if agreed upon by the parties. There is also an agreement between the parties to include the Al Hadeetha/Mawarid collaboration into a broader Oman-consolidated copper strategy.
The Australian company also plans to commission a limited feasibility study aimed at refining the geo-technical parameters of the deposit in order to optimise the mine design and development. A tender for the study would close by the end of February 2015.
The MoU will also progress to a formal Toll Treatment Agreement through the feasibility study completion programme, said Alara Resources in a statement.
