Sierra Nevada Gold (ASX: SNX) has been awarded the highly prospective As Safra copper-gold project in Saudi Arabia after a competitive tender process with Saudi Arabia’s Ministry of Industry and Mineral Resources.
The successful bid significantly expands the company’s presence in one of the world’s most underexplored mineral provinces.
It represents the first formal step toward securing a full exploration licence over the large-scale copper-gold skarn system, which has demonstrated high-grade potential across numerous untested targets within a district-scale mineralised footprint.
The award will be accompanied by a Saudi investment licence to Sierra Nevada’s planned subsidiary company Arabian American Minerals, with discussions between Sierra Nevada, potential partners, and high-level government officials reportedly proceeding well.
High-Impact Strategy
Sierra Nevada executive director Peter Moore said the award was a major step forward in the company’s strategy to secure high-impact exploration assets in Tier 1 jurisdictions.
“As Safra is an exceptional opportunity which combines large-scale copper and gold potential, extensive mineralised strike and multiple high-grade targets that have seen only limited historic drilling,” he said.
“Receiving a Letter of Award places us in a strong position to participate in the rapid growth of Saudi Arabia’s mining sector and we look forward to completing the final licencing steps and starting systematic exploration to unlock its full value.”
As Safra sits across 375 square kilometres characterised by well-developed metal zonation, transitioning from a central copper-gold core into broader silver-copper-lead and lead-zinc-silver distal systems.
Intermittent exploration over the past 60 years has focused on the central corridor of ancient copper-gold workings, while an abundance of ancient mine sites and slag deposits underscores the project’s inherent polymetallic prospectivity.
Historical Exploration
Previous drilling by the French Geological and Mining Research Bureau demonstrated the strength of the As Safra system, returning sulphide-rich intercepts such as 24.55 metres at 1.69% copper and 5m at 4.07% copper.
Rock chip assays returned up to 244 grams per tonne gold and 11% copper, highlighting “exceptional fertility” within the project’s central copper-gold system.
Historical induced polarisation surveys show a strong correlation between chargeability anomalies and drilled high-grade copper, with many anomalies untested and interpreted as targets for new discoveries.
Sand cover is thought to conceal near-surface oxide and sulphide copper, creating a strong opportunity for blind discoveries.
Mr Moore said with a full exploration licence expected next year, the company will be positioned to commence systematic drill testing to evaluate and advance high-priority targets.
