Auking Wins Bid for Saudi Gold Exploration Licence

AuKing Mining Limited (ASX: AKN, AuKing) is pleased to advise that, together with local Saudi Arabian partner, Barg Alsaman Mining Company (BSMC), it has been successful in securing the “Shaib Marqan” exploration licence as part of the Saudi Ministry of Industry and Mineral Resources’ 6th Licensing Round bid process.

HIGHLIGHTS

The Saudi Ministry of Industry and Mineral Resources (Ministry) issued an Information Memorandum dated 5 August 2024 (IM) as part of the 6th Licensing Round bid process. The following highlighted information was included in the IM in relation to Shaib Marqan:

• The Project is considered highly prospective for orogenic vein-hosted gold mineralization and is significantly under-explored. The Al Amar gold mine is 100km to the north-west and produced nearly 30,000oz Au in 2022 (Ma’aden Gold).
• At least 22 ancient workings over quartz veins have been noted in the area, with 50 vein and wall-rock samples averaging ~ 5.8g/t Au, with a maximum of 40g/t Au.
• The quartz veins have lengths of up to 300m, with widths of up to 10m being reported.

Managing Director, Paul Williams commented: “AuKing is very pleased to have secured the Shaib Marqan exploration licence with its local partner BSMC. We understand that this 6th Bidding Round has been the subject of significant interest from companies around the world and it is an honour to be recognized by the Ministry with this successful bid. Shaib Marqan is situated in a highly mineralized area within the famous Arabian-Nubian Shield geological region and is situated within close proximity to various established deposits.

Systematic exploration across the licence area could lead to the rapid identification of a significant mineral deposit within the Ar Rayn Terrane”, he said.

We will now commence work with both the Ministry and our local Saudi partner, BSMC, to seek to finalise the grant of the formal Shaib Marqan exploration licence over the next several weeks”, Mr Williams said.

Saudi Arabia’s Mining Sector Expansion

Saudi Arabia’s Vision 2030 reform agenda has elevated the mining sector’s role in the Saudi economy, positioning it as a third key economic pillar as part of the National Industrial Development and Logistics Program. The Kingdom’s focus on mining is driven by a desire to diversify the economy and increase non-oil revenue as it weans itself off oil dependence.

Furthermore, minerals are key inputs in many industries essential to Vision 2030 objectives, such as achieving a green transition, digitizing the economy, becoming a global hub for technology and connectivity, producing nuclear energy, and localizing military procurement.

The new mining law that came into effect in 2021 targets the exploitation of the Kingdom’s mineral resources and the development of its mineral-based manufacturing industry, all of which are aimed at reducing imports to the Kingdom by circa $10Billion and generate more than 200,000 jobs by 2030.

Shaib Marqan Gold Project

Shaib Marqan is situated in central Saudi Arabia and covers an area of 91.8km². The project area is around 240km south-west of Riyadh and is part of the Ar Rayn Terrane along the eastern margin of the Arabian-Nubian Shield (ANS). Despite being smaller than other terranes within the ANS, the Ar Rayn Terrane is known for hosting multiple mineral systems and mineral commodities, including volcanogenic massive sulfide (VMS)-hosted copper and zinc, epithermal and orogenic gold, and iron oxide copper/gold (IOCG) deposits.

Ancient workings have been documented throughout the Al Amar Belt, concentrating mainly on quartz veins with disseminated pyrite. The area was first mapped in 1956, with intermittent exploration occurring between 1970 and 1994.

The Ar Rayn Terrane in general has been the focus of exploration activities since the 1950’s. Notably, the Al Amar Au-Ag-Zn-Cu deposit, the Khnaiguiyah Zn-Cu-iron-manganese deposit and the Jabal Idsas magnetite prospect are all hosted within the Ar Rayn Terrane. The Al Amar Mine is located 100km northwest of Shaib Marqan project area and produced 27,443 ounces Au in 2022 (Ma’aden, 2022).

Previous exploration within the Ar Rayn Terrane includes mapping, regional geophysical surveying, and geochemical sampling of a single mineral occurrence within the KSA’s Mineral Occurrence Documentation System (MODS). Shaib Marqan stands out as a relatively under-explored area of the Ar Rayn Terrane in close proximity to several established deposits. Based upon the previous exploration work in the region, further systematic exploration activities could lead to the rapid generation of new precious and base metals targets.

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