SNX Secures Royal Decree for As Safra Exploration Licences, Drilling Underway

Royal Decree Grant Clears Path for Drilling

Sierra Nevada Gold (ASX:SNX) has crossed a significant milestone with the Kingdom of Saudi Arabia granting five exploration licences for the As Safra copper-gold project by Royal Decree. This highest level of sovereign approval not only endorses the project’s strategic importance but also clears the way for immediate ground-disturbing exploration activities. With three drill rigs already mobilised on site, SNX is poised to transition swiftly from targeting to drilling, aiming to test multiple high-priority zones defined through recent surveys.

The licences were awarded following the Kingdom’s competitive Round 9 bid round, marking As Safra as one of the most advanced licence packages secured under this initiative. This development cements SNX’s position as a trusted player in one of the world’s fastest-growing mining jurisdictions and reflects strong government backing aligned with Saudi Arabia’s Vision 2030 economic diversification objectives.

Integrated Targeting Sharpens Drill Focus

Exploration targeting at As Safra has rapidly matured through the integration of systematic geochemical sampling and multiple geophysical datasets, including ground magnetic, gravity, and recently added induced polarisation (IP) surveys. These combined datasets delineate a +5.5 km mineralised corridor exhibiting clear metal zonation from a central copper-gold core to peripheral lead-zinc-silver assemblages.

Pathfinder elements such as bismuth and tellurium consistently indicate proximity to high-grade feeder structures and potential “shoot” positions within the system. High-resolution magnetic data reveal magnetite-rich skarn alteration fronts and structural corridors interpreted as fluid pathways, while gravity surveys help identify density contrasts linked to intrusive bodies. This integrated approach has defined multiple compelling drill targets, including the As Safra SE zone, where high-grade surface mineralisation overlies a previously undrilled geophysical anomaly, effectively de-risking the initial drilling phase.

Local Workforce Expansion and Government Support

SNX’s wholly owned Saudi subsidiary, Arabian American Minerals (AAM), is spearheading exploration activities, expanding its national workforce, and increasing engagement with Saudi contractors and service providers. This strategy not only supports local employment and skills development but also aligns with the Kingdom’s in-country value objectives under Vision 2030. The company’s approach ensures efficient program execution while strengthening its long-term presence in Saudi Arabia.

The Saudi government’s support has been pivotal, with key agencies like the Ministry of Industry and Mineral Resources and the Saudi Geological Survey facilitating a streamlined licensing process and offering exploration incentives of up to US$2 million per licence. Access to high-quality regional datasets and a transparent regulatory regime further enhance exploration efficiency and reduce early-stage risks. SNX’s establishment of AAM was a strategic step to align with these in-country requirements and leverage the Kingdom’s mining sector growth initiatives, as detailed in the company’s recent announcement on the subsidiary’s creation Saudi subsidiary Arabian American Minerals.

As Safra’s Geological Promise

The As Safra Project covers a district-scale mineralised footprint characterised by well-developed metal zonation transitioning from a copper-gold core through to broader silver-copper-lead and lead-zinc-silver distal systems. Historical exploration has been limited, focusing mainly on a 5.5 km corridor of ancient copper-gold workings. Notably, historic drilling by the French BRGM in the late 1960s returned sulphide-rich intercepts such as 24.55 metres at 1.69% copper and 5.0 metres at 4.07% copper, while rock-chip assays have recorded up to 244 grams per tonne gold and 11% copper, underscoring the system’s exceptional fertility.

Historic induced polarisation surveys reveal multiple untested chargeability anomalies interpreted as sulphide bodies at depth, and the relatively thin cover across much of the project area leaves room for blind discoveries. This geological setting positions As Safra as a compelling exploration opportunity complementing SNX’s Nevada projects, providing year-round field activity given seasonal constraints in the US Saudi copper-gold project.