Oman Mining Company (OMCO) and Minerals Development Oman (MDO) have signed an agreement with international mining investment firm EXO, for the exploration and development of copper and gold reserves in Block 10 near Yanqul in Al Dhahirah Governorate, said a report.

The agreement will pave the way for investments of over $100 million over an initial three-year period targeting just 10 per cent of the potentially mineral-rich Block, added the Oman Daily Observer report.

The agreement was signed by Abdulsattar al Murshidi, chairman of Oman Mining Company; Nasser Saif al Maqbali, deputy CEO – Minerals Development Oman; and Kari J R Haataja, CEO and managing partner, EXO Mining.

Al Murshidi revealed that the equity in the Yanqul project company will be shared as follows: OMCO — 29 per cent, MDO — 20 per cent, and EXO — 51 per cent, it said.

Block 10, located near Yanqul town in the Wilayat of Yanqul, covers a 370-sq-km area. The first phase of development will focus on five known copper (Cu) and gold (Au) prospects within Block 10 accounting for 10 per cent of the total Block 10 area.

Al Murshidi said that the Yanqul Project has been well explored in the past and has a high confidence Mineral Resource Estimate, according to JORC guidelines (the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves).

He added that the first phase investment is estimated at approximately $100 million over the coming three-year period, and the Yanqul Project company will also engage in further exploration of the entire Block 10 area.

Subject to further proven mineral reserves in the coming years, the company will also evaluate potential investment opportunities in a smelter project in the local region, added the report.