Sierra Nevada Gold Sets Stage for Saudi Copper-Gold Drilling with New Subsidiary

Magnetic Survey Targets Skarn-Style Mineralisation

Sierra Nevada Gold has ramped up exploration at its As Safra Copper-Gold Project in Saudi Arabia with a high-resolution ground magnetic survey aimed at mapping magnetite-rich skarn zones. These magnetic anomalies are critical as they could pinpoint concealed sulphide mineralisation beneath shallow sand cover, improving drill targeting precision. The survey builds on rock chip sampling that returned impressive grades of up to 9.66% copper and 12.6 g/t gold, reinforcing the project's prospectivity.

Integration of this magnetic data with previously identified geochemical vectors and historic IP chargeability anomalies is expected to refine the understanding of structural controls and mineralised corridors along the 5.5 km As Safra trend.

Extensive Mapping and Sampling Extend Mineralisation Footprint

Complementing the geophysical work, detailed geological mapping and systematic surface sampling have been completed across previously unexplored clusters of ancient workings. This phase aims to validate structural controls and extend known mineralised zones. Particularly, the As Safra Southeast cluster overlies a strong IP chargeability anomaly that remains untested by drilling, representing a high-priority target once exploration licences are granted.

Samples from this program are undergoing multi-element geochemical analysis to identify pathfinder elements and metal zonation patterns, which will help prioritise drill targets proximal to interpreted feeder structures and favourable lithologies.

New Saudi Subsidiary Paves Way for Licence Grants and Drilling

In a strategic move to align with Saudi Arabia's regulatory framework and Vision 2030 mining ambitions, SNX has established Arabian American Minerals LLC (AAM), a wholly owned Saudi subsidiary. This entity provides a local operating platform to hold exploration licences, engage contractors, and execute exploration programs in compliance with in-country participation requirements.

The creation of AAM is a significant de-risking milestone, enabling SNX to fast-track exploration activities, including the planned 5,000-metre Phase 1 drilling program. The company has already selected drilling contractors and secured rigs, aiming to mobilise as soon as licences are granted. This development follows the subsidiary's launch earlier in the year, which was highlighted as a key enabler for the project’s advancement Saudi Subsidiary Arabian American Minerals.

Drilling Campaign to Test High-Priority Targets

The initial drilling program will deploy both Reverse Circulation and Diamond core rigs to provide comprehensive geological, structural, and metallurgical data. Targets include feeder zones identified through integrated interpretation of geochemical, magnetic, and historic drilling data. The 5,000-metre campaign aims to validate the geological model and assess the scale and continuity of copper-gold mineralisation along the As Safra trend.

Drilling is contingent on the imminent grant of exploration licences, with mobilisation planned for April. This follows the company’s earlier announcement of securing the As Safra project and preparing for drilling High-Grade Copper-Gold at As Safra.

Financial Position and Ongoing Activities

During the March 2026 quarter, SNX spent approximately US$516,000 on exploration activities, including the magnetic survey, mapping, and sampling programs. The company ended the quarter with a healthy cash balance of US$4.86 million, providing a runway of over eight quarters at current expenditure levels.

Meanwhile, preparations continue for a small-scale trial mining program at the New Pass project in Nevada, complementing the company’s Saudi Arabian activities and diversifying its asset base. This dual focus allows SNX to maintain field work year-round, leveraging seasonal advantages across jurisdictions New Pass Trial Mining Update.