SNX Raises A$9.65M, Nears Saudi Auction Close, and Gains Nevada Mining Permit
Sierra Nevada Gold (SNX) is nearing the conclusion of its bidding for exploration blocks in Saudi Arabia while securing key permits to restart mining in Nevada. The company is poised to begin test mining and drilling programs backed by fresh capital.
- SNX engaged in final bidding round for Saudi Arabian gold and copper exploration blocks
- Mining permit granted to reopen New Pass Mine in Nevada, USA
- Test mining program at New Pass pending final operational permits
- Field exploration completed at Warrior Gold Project with drilling imminent
- A$9.65 million raised via share placement to fund exploration and development
Strategic Bidding in Saudi Arabia
Sierra Nevada Gold (ASX – SNX) is actively participating in Round 9 of a multi-round auction for exploration blocks in the Kingdom of Saudi Arabia (KSA). The company is optimistic about securing significant gold and copper exploration opportunities in a region that is rapidly gaining attention due to its geological potential and supportive government initiatives.
SNX’s technical team, led by Chief Geologist Brett Butlin, brings considerable expertise from previous successes in the region, including involvement with the Jabal Sayid Copper deposit, which was sold for $1.25 billion in 2010. The company is leveraging this experience to selectively bid on promising blocks, with the auction expected to conclude imminently and results to be announced shortly thereafter.
Nevada Projects – Permitting and Exploration Progress
On the home front, SNX has secured a critical mining permit to reopen the New Pass Mine in Nevada, a significant milestone that enables the company to advance its bulk sampling and test mining program. While final operational permits are still pending; expected within the next 30 days barring any US government shutdown delays; this permit transfer marks a key step toward resuming production activities.
Complementing this, SNX has completed an underground sampling program at New Pass, submitting metallurgical samples for testing to assess ore processing suitability. Meanwhile, at the Warrior Gold Project, field exploration has wrapped up, setting the stage for drilling to commence soon, weather permitting.
Capital Raise Fuels Growth Ambitions
To support these initiatives, SNX successfully raised A$9.65 million through a recent share placement. The funds are earmarked for advancing exploration and drilling at its Nevada projects; including New Pass, Warrior, and the Blackhawk epithermal silver project; as well as for business development efforts in Saudi Arabia and general working capital.
Executive Director Peter Moore highlighted the company’s momentum, noting that the past few months have seen plans take shape across multiple fronts. With bidding in Saudi Arabia nearing conclusion, permitting progressing in Nevada, and drilling programs imminent, SNX is positioning itself for a busy and potentially transformative period.
Leveraging Saudi Arabia’s Supportive Mining Framework
The Kingdom of Saudi Arabia’s Vision 2030 initiative and associated government programs provide a compelling backdrop for SNX’s ambitions. The Saudi Geological Survey’s extensive data collection and digitization efforts, coupled with financial incentives like the Exploration Enablement Program, offer foreign explorers a transparent and supportive environment to pursue large-scale discoveries.
SNX intends to capitalize on these advantages, using the rich datasets and government reimbursement programs to accelerate target generation and project development within the Arabian Shield, an area with strong indicators for gold and base metal deposits.
Bottom Line?
With key permits in hand and bidding results imminent, SNX stands at a pivotal juncture that could redefine its growth trajectory.
Questions in the middle?
- Which specific exploration blocks will SNX secure in Saudi Arabia, and what are their resource potentials?
- How might potential US government shutdowns impact the timing of New Pass operational permits and test mining?
- What are the expected timelines and targets for drilling programs at Warrior and other Nevada projects?
