Risks and Rewards: SNX’s Bold Saudi Expansion Amid Early-Stage Exploration

Strategic Expansion into Saudi Arabia

Sierra Nevada Gold (ASX, SNX) has announced a significant milestone by securing the As Safra Copper-Gold Project in Saudi Arabia through a competitive tender process. This 375 square kilometre project is situated within the Arabian-Nubian Shield, a region known for its underexplored yet highly prospective mineral endowment. The award positions SNX to obtain a full exploration licence, enabling systematic exploration of a district-scale copper-gold skarn system with historic rock chip assays reaching exceptional grades of up to 244 grams per tonne gold and 11% copper.

The As Safra project features a central mineralised corridor extending 5.5 kilometres with ancient workings and slag deposits indicating a rich legacy of copper-gold mineralisation. Historic drilling, though limited, has returned promising sulphide copper intercepts, underscoring the potential for significant discoveries beneath thin sand cover that conceals further mineralisation.

Complementary Nevada Operations

While advancing its Saudi Arabian interests, SNX continues to develop its portfolio in Nevada, USA. The company has completed geological mapping and sampling at its Warrior Gold Project and commenced a targeted drilling program to test depth extensions of mineral structures at key prospects. Results from this initial drilling phase are expected in the first quarter of 2026, with plans for a more extensive drilling campaign in the subsequent quarter.

This dual-hemisphere approach allows SNX to maintain continuous field activity year-round, leveraging seasonal advantages between the Northern Hemisphere’s winter and summer exploration windows.

Corporate and Financial Position

SNX has bolstered its financial capacity through a successful share placement raising A$9.65 million, approved by shareholders in late 2025. These funds are earmarked for advancing exploration and drilling programs across its projects in Nevada and Saudi Arabia, as well as for general working capital and business development.

Additionally, SNX has incorporated a Saudi subsidiary, Arabian American Minerals, to hold exploration and mining licences, reflecting a strategic commitment to operating within the Kingdom’s regulatory framework. This move aligns with Saudi Arabia’s Vision 2030 initiative, which aims to diversify the economy through developing its mining sector, supported by government incentives such as the Exploration Enablement Program.

Outlook and Market Context

The As Safra project represents a cornerstone asset with the potential to deliver transformational value through systematic exploration of multiple untested geophysical targets. The combination of high-grade copper and gold mineralisation, extensive strike length, and supportive government policies creates a compelling opportunity for SNX to establish a significant presence in a rapidly emerging mining jurisdiction.

Meanwhile, the Nevada projects continue to provide steady exploration momentum, with upcoming drill results poised to inform the next phase of resource definition and development planning.