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Arabian American Development Co. (ARSD) RSS Feed

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ARSD---------->Al Masane Project Information 
JORC Compliant Ore Reserve Study Project Overview 
Completed Sept. 2009 by Watts, Griffis and McQuat 


Introduction 
Al Masane Al Kobra Mining 
Company is a precious metals and base metals developer focused on the completion and production of the 700,000 tpa copper, zinc and precious metals Al Masane Mine in Saudi Arabia. The Al Masane Project is fully funded and permitted. As of mid 2010, the surface facilities were completed and waiting for testing prior to delivery of ore. The contract to continue mine development has been awarded and pre-production development has commenced. 

Production of copper concentrate, zinc concentrate, gold and silver bullion is scheduled for the 3rd quarter 2011. 

The project is located in southwestern Saudi Arabia, approximately 640 km south east of Jeddah. It lies some 414 km by a newly paved road from the port of Gizan on the Red Sea. The mines copper and zinc concentrates will be trucked to the port of Gizan and shipped to smelters in Europe or the far east. 

In addition to the known ore reserves that are being developed, exploration of gossans and geochemical anomalies in the greater Al Masane area has indicated that there is a high probability of discovering additional minable resources which will increase the life of mine. 

 



ARSD ownes 37% of AMAK   http://www.amak.com.sa/


Arabian American Development Announces Signing of Multi-Year Production Contract for Al-Masane Al-Kobra Mine 
Mining Operation Also Enters into Agreement to Build a Seaport Storage Facility


DALLAS, July 19, 2011 /PRNewswire/ -- Arabian American Development Co. (Nasdaq:ARSD - News) today announced a three-year, $79 million contract with China National Geological & Mining Corporation effective July 3, 2011 for the operation, management and maintenance of the surface works of the Al-Masane Al-Kobra (AMAK) mine. This contract is in addition to a five-year contract with CGM, effective June 29, 2010, that totaled $125.0 million USD which covered the engineering, design, mobilization, rehabilitation of existing mine workings and production work and included a provisional sum of $8.1 million USD for equipment that CGM has the option to provide. Arabian American is the original developer and now a 37% equity owner of the AMAK mine project. 

The Company also announced that the AMAK mining operation has entered into an agreement with Walid S. Bugshan & Partners Co. Ltd. (Metafco), for the design, supply and construction of a seaport storage facility in Jizan, Saudi Arabia. 

Nick Carter, president and CEO commented, "This contract is another major milestone for the AMAK mining project which is nearing completion in the Najran Province area of southwest Saudi Arabia. The $79 million cost of operations over the three year contract is in line with the previous cash flow expectations based on 2000 tons per day and includes approximately $29.4 million for reagents to be used in the mill process. In conjunction with our new equity partner ARMICO, the mining project has the capital to bring the mine into operation as well as working capital to support the new contract with CGM and we anticipate the start of operating cash flows assuming successful operational testing of the mill beginning in early 2012." 

Mr. Carter continued, "The agreement to construct a seaport facility will ensure that when the mine becomes operational and delivers economic quantities of concentrates, we will have adequate storage capabilities. As previously reported, AMAK is now in discussions with several major commodity tradingcompanies who have expressed interest in purchasing the off-take of concentrates that will be produced when the mine starts production at the beginning of 2012." 

The scope of the operation, management and maintenance of the surface works includes: 

Production of copper and zinc concentrate, gold and silver bullion, talc and tails products at a rate of 2,000 tons per day (0.7Mtpa) from ore. 
Operation, maintenance and management of the surface works, designed and constructed by CGM as defined by AMAK. 
Production, stockpiling and storage of copper concentrate, zinc concentrate and bullion products that meet defined specifications. 
Sampling, assaying, loading and weighing of copper concentrate, zinc concentrate and bullion products, ready for transportation by others, and maintaining accurate records of the same. 
Sampling and assaying of all intermediate and final products during the processing of ore and keeping accurate records of the same. 
Supply and utilization of all reagents, spare parts, consumables and any other goods required to perform the operation, maintenance and management of the surface works facilities and utilities. 
Management, administration reporting (in English) and the required logistics for the supply, warehousing and consumption of all spare parts and consumables, human resources, production and environmental matters. 
Provision of all personnel required for the performance of the project requirements. 
Loading, transportation and placement of waste ("dry" tailings and talc product), within defined specifications to the designated Tailings Storage Facility ("TSF"). 
Handover of the surface works in good working order to AMAK on completion or termination of the contract including replacing spare parts consumed from the 12-month supply made available at the commencement of the contract. 
Periodic sampling and testing of all water and monitoring wells and keeping accurate records of the same. 
Development and handover of all technical documents required in the performance of the services under the contract. 


The scope of the design, supply and construction of the Jizan seaport storage facility includes: 

Design, supply and construction of a seaport storage facility at Jizan including a laboratory room. 
Total building gross area: 9,870 m2 and approximate project gross area: 9,974 m2. 
Cost is expected to run 9.5 million SAR, or approximated $2.5 million USD. 
Expected completion is eight months. 
The port has a building AMAK will use temporarily until the permanent structure is complete. 

 

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