Sierra Nevada Gold (ASX: SNX) has revealed strong initial drill results at its As Safra copper-gold project in Saudi Arabia, confirming continuous high-grade copper mineralisation over a 5.5km corridor. The company also appointed Adam Oehlman as CEO to drive its next growth phase.
- High-grade copper mineralisation confirmed from surface to over 200m depth
- Phase 1 drilling completed with 28 holes totaling 5,400m
- Mineralised corridor extends 5.5km with significant exploration upside
- New CEO Adam Oehlman appointed to lead accelerated growth
- Cash balance at US$1.9 million with US$1.5 million spent on exploration
Strong Copper Intercepts Validate As Safra Potential
Sierra Nevada Gold (ASX:SNX) has delivered compelling early evidence of a substantial copper-gold system at its As Safra project in Saudi Arabia. Initial drilling, completed in Phase 1 with three rigs, returned multiple high-grade copper intersections including 17m at 1.26% Cu and 16m at 1.20% Cu from shallow depths. These results confirm continuous mineralisation extending from surface to more than 200 metres vertically, remaining open along strike and at depth within a 5.5-kilometre mineralised corridor.
The drilling campaign, comprising 28 holes and 5,400 metres of reverse circulation and diamond drilling, tested less than a quarter of the identified corridor. This early success supports the company’s integrated exploration model, which combines geochemical, geophysical, and structural data to pinpoint high-priority targets beneath shallow cover, some never previously drilled. The presence of silver alongside copper, with assays up to 27.34 g/t Ag, hints at a polymetallic system with potential vectors toward feeder-style mineralisation.
District-Scale System with Significant Upside
As Safra’s geological setting is characterised by a metal zonation pattern typical of Tier 1 hydrothermal systems, transitioning from a copper-gold core to broader silver, lead, and zinc halos. The project’s scale and complexity are underscored by the spatial distribution of targets and the alignment of drilling results with historical data, including Bureau de Recherches Géologiques et Minières (BRGM) drilling from the 1970s. Notably, SNX’s recent holes corroborate historical intercepts such as 7 metres at 2.21% copper from 150 metres depth, reinforcing confidence in the system’s continuity.
With Phase 1 now complete, SNX is gearing up for an expanded Phase 2 drilling program aimed at extending mineralisation along strike and at depth, as well as testing undrilled gold zones within the corridor. Ongoing interpretation of magnetic, gravity, and induced polarisation data will refine targeting and accelerate evaluation of this district-scale copper opportunity. This approach significantly de-risks exploration, leaving multiple high-priority targets untested and offering substantial discovery potential.
Leadership Change Signals Growth Ambitions
In a move to capitalise on this momentum, SNX appointed Adam Oehlman as CEO effective 11 June 2026. Oehlman brings a blend of technical expertise, corporate development, and M&A experience, having recently led African Gold Limited through a resource expansion and a corporate transaction valued over A$550 million. His appointment aligns with SNX’s strategy to accelerate growth at As Safra and explore value across its US portfolio, including projects in Nevada with epithermal gold-silver and porphyry copper-gold systems.
Executive Director Peter Moore remains involved to support the leadership transition and oversee ongoing programs. The strengthened executive team aims to navigate the company through this critical exploration phase and position SNX for potential value creation.
Financial Position and Funding Outlook
SNX ended the June quarter with a cash balance of US$1.9 million, down from US$4.9 million in March, reflecting US$1.5 million spent on exploration primarily at As Safra. The company acknowledges the modest cash position but highlights expected inflows including VAT refunds from the Saudi government and a US$1.19 million deposit with the Ministry of Industry and Mineral Resources, anticipated by mid-2027. Additionally, SNX retains flexibility to scale exploration activities, raise further funds, or consider farm-outs to meet its operational and strategic objectives.
This financial prudence will be crucial as SNX prepares for the larger Phase 2 drilling program, which will test the broader mineralised corridor and gold targets. The coming quarters will be pivotal in determining the project’s commercial viability and the company’s capacity to sustain its exploration momentum.
Bottom Line?
SNX’s early drilling success at As Safra and new CEO appointment set the stage for an intensified exploration push, but funding constraints and pending Phase 2 results will be key to watch.
Questions in the middle?
- How will Phase 2 drilling expand the known mineralised footprint at As Safra?
- What impact will Adam Oehlman’s leadership have on SNX’s strategic direction and capital management?
- Can SNX secure sufficient funding to sustain its accelerated exploration and unlock value across its portfolio?