Alara confirms Khnaiguiyah mineralisation

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THE DRILL SERGEANT: Alara Resources has reported results from an ongoing drilling program at the company’s Khnaiguiyah zinc copper project in Saudi Arabia.

Alara said the latest results confirm the presence of additional mineralisation to the maiden Khnaiguiyah JORC Resource the company announced in February 2012 of:

–    26.4 million tonnes at 3.9 per cent zinc and 0.12 per cent copper (4.3 per cent zinc equivalent); and

–    7Mt at 8 per cent copper.

Alara said the latest results were from drilling it had conducted outside the previously defined JORC Resource area and confirm additional mineralisation in Zone 1 and Zone 2 (North extension).

The company also released results from 4 holes carried out within its Zone 3 area, which are previously drilled geotechnical holes for which analysis was carried out after completion of a related geotechnical study.

Results from all drilling included:

ZONE 1:

–    6.8 metres at 6.02 per cent zinc, 0.49 per cent copper from 24 to 30.8 metres;

–    3m at 7.51 per cent zinc, 0.95 per cent copper from 63 to 66m; and

–    8.55m at 10.91 per cent zinc, 0.19 per cent copper from 25.45 to 34m, including 2.55m at 21.80 per cent zinc, 0.34 per cent copper and 5.1m at 10.97 per cent zinc, 0.21 per cent copper from 42 to 47.1m, including 1m at 31.56 per cent zinc, 0.70 per cent copper from 25.45 to 28m.


ZONE 2:

–    5.2m at 7.15 per cent zinc, 0.14 per cent copper from 80.8 to 86m;

–    5m at 8.40 per cent zinc, 0.38 per cent copper from 157 to 162m;

–    11m at 6.42 per cent zinc, 0.12 per cent copper from 177 to 188m; and

–    10m at 10.90 per cent zinc, 0.31 per cent copper from 91 to 101m:


ZONE 2 (Copper Rich Zone):

–    4m at 1.09 per cent copper from 164 to 168m; and

–    9.6m at 1.47 per cent copper from 193.4 to 203m.

ZONE 3:

–    4m at 11.02 per cent zinc, 0.07 per cent copper from 78 to 82m;

–    22.1m at 6.87 per cent zinc, 0.14 per cent copper from 187 to 209.1m and 7m at 6.69 per cent zinc, 0.65 per cent copper from 214 to 221m; and

–    11m at 5.62 per cent zinc, 0.22 per cent copper from 20 to 31m.

Alara said the results from Zone 1 continue to confirm mineralisation at shallow depths and similar in grade as that found in Zones 2 and 3.

“These latest results confirm the presence of additional mineralisation within Zones 1 to 3 and give us further confidence surrounding the feasibility and scale of the Khnaiguiyah zinc copper project,” Alara Resources managing director Shanker Madan said in the company’s announcement to the Australian Securities Exchange.

“The Khnaiguiyah Definitive Feasibility Study (DFS) is nearing completion and is expected to be finalised by the end of June 2012.

“Once the DFS is complete, Alara will move to the design and construction phase of the Khnaiguiyah project.”

Alara is continuing infill and step-out drilling to extend mineralisation in Zone 1 and Zone 2 with a view to identifying additional mineralisation prior to the completion of the Khnaiguiyah DFS in Q2 2012.