Peako has completed its Saudi Arabian gold portfolio acquisition and identified multiple high-grade surface targets ahead of a maiden RC drilling campaign expected to begin in November. The results are encouraging exploration signals, but remain rock-chip and historical drilling data rather than a mineral resource.
- Six Saudi gold projects covering 862km² acquired
- Wadi Jarir corridor returns rock chips up to 41.5 g/t gold
- New Matar and Karak discoveries near the Sukhaybarat mine
- RC drilling secured for five targets from November
- $5.17 million placement completed at 0.4 cents a share
Saudi Portfolio Moves From Acquisition to Drilling
Peako Limited (ASX:PKO) is moving its Saudi Arabian strategy into its first serious test: an RC drill rig has been secured for a maiden campaign expected to start in November, after fieldwork identified several high-grade gold-bearing systems across the newly acquired portfolio.
The company completed its acquisition of six exploration projects covering 862km² in Saudi Arabia’s Central Arabian Gold Region during the September quarter. The ground sits within 65km of the Sukhaybarat and Bulghah gold mines, which Peako says contain approximately 2 million ounces and 3.4 million ounces respectively. The portfolio includes ten exploration licence blocks, although the transfer of legal title to Peako’s Saudi subsidiary remains subject to applicable Saudi statutory processes.
The acquisition was previously outlined in the Saudi gold portfolio acquisition, which covered the same 862km² landholding and the company’s planned move towards drilling. Peako’s latest report provides the first quarterly account of field programs conducted across the expanded Saudi portfolio.
Wadi Jarir Emerges as a Flagship Drill Target
At Wadi Jarir, mapping defined an 8km-long by 2km-wide corridor of quartz and quartz-carbonate veins. Rock-chip samples returned up to 41.5 grams of gold per tonne, alongside results of 23.6 g/t and 10.6 g/t from structures that Peako says were not previously recognised.
Historical drilling largely tested the spaces between the main veins, according to the report. The planned program will instead target the primary vein system and follow up historical results including 2 metres at 13.5 g/t gold, including 1 metre at 25.9 g/t, at the end of a hole that finished in mineralisation. Those results are prospective rather than proof of a continuous deposit, particularly because the headline surface numbers are grab and rock-chip samples.
The Wadi Jarir discovery builds on the 8km Wadi Jarir corridor, which earlier coverage described as a high-grade vein system ahead of drilling. The next step is to establish whether the surface mineralisation and isolated historical intercepts connect at depth and along strike.
Matar and Karak Add Near-Mine Targets
Peako also reported two previously unidentified vein systems at its Sukhaybarat South project. Matar, 2.5km south of the operating Sukhaybarat mine, returned rock-chip results up to 22.9 g/t gold. Karak produced samples up to 9.1 g/t across a system mapped over 2km of strike and 1.5km in width.
Drilling at Sukhaybarat South will test both discoveries, along with Redhill SE, where historical RC holes returned 4 metres at 11.3 g/t gold and 5 metres at 5.5 g/t. The company also plans step-out drilling at Jabal Jumaymah, a 1.1km outcropping vein and breccia system with historical intercepts including 7 metres at 10.12 g/t and 7 metres at 5.44 g/t.
Peako’s earlier UAV magnetic surveys covered five target areas across 54km² and approximately 1,400 line-kilometres. The survey data is expected to refine structural interpretations and drill planning, but the report does not provide the results yet.
Funding and Corporate Changes
The September quarter also brought a $5.17 million placement before costs at 0.4 cents per share. The second tranche comprised 1.075 billion shares issued in August, following the 218.75 million shares issued in the June quarter. Peako also issued 200 million consideration shares and 954.666 million performance rights for the Saudi portfolio, meaning the acquisition and exploration push have been accompanied by a substantial increase in securities on issue.
Peako spent $534,000 on Saudi exploration during the quarter, compared with $107,000 on its Western Australian projects. The company has strengthened its technical and regional bench with Stephen McIntosh and Marcus Harden joining the board, while Johan van Vuuren joined as strategic adviser after senior roles in Saudi Arabia, including at Ma’aden. Louis Bucci and Rae Clark resigned as directors.
The East Kimberley assets remain part of the portfolio, with mapping and sampling underway at Bullock Bore, Morgans Grave and Eastman South. Peako relinquished lower-prospectivity ground in E80/5182, leaving that tenement at 90.8km².
Bottom Line?
November drilling is the key transition point: Peako now needs subsurface results to show whether impressive surface samples and scattered historical intercepts represent coherent gold systems, while the Saudi licence transfer and post-placement funding position remain important execution details.
Questions in the middle?
- Will the November RC program confirm continuous mineralisation beneath the Wadi Jarir, Matar and Karak surface anomalies?
- How will the pending magnetic survey results change the company’s drill targets and campaign priorities?
- When will legal title to the Saudi licence blocks transfer to Peako’s new subsidiary, and what cash balance will remain after the initial drilling push?