AuKing Mining Ltd (ASX:AKN) and local Saudi Arabian partner Barg Alsaman Mining Company (BSMC) has secured the Shaib Marqan exploration licence in Saudi Arabia as part of a competitive Saudi Ministry of Industry and Mineral Resources’ 6th Licensing Round bid process.
An Information Memorandum (IM) from the Ministry in August 2024 stated the 91.8-square-kilometre project is considered highly prospective for orogenic vein-hosted gold mineralisation and is significantly under-explored.
In gold region
In the same central Saudi region is the Al Amar gold mine, 100 kilometres to the northwest, that produced nearly 30,000 ounces in 2022.
The IM said that at least 22 ancient workings over quartz veins had been noted in the area, with 50 vein and wall-rock samples averaging ~5.8 g/t gold, with a maximum of 40 g/t. These quartz veins have lengths of up to 300 metres, with widths of up to 10 metres being reported.
Discussions will now proceed over the next few weeks with a view to finalising the terms of the grant of exploration licence by the Ministry in relation to Shaib Marqan.
Honour to be recognised
Managing director Paul Williams said: “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 recognised by the Ministry with this successful bid.
"Shaib Marqan is situated in a highly mineralised area within the famous Arabian-Nubian Shield geological region and is situated within close proximity to various established deposits."
In Ar Ryan Terrane
The project area is around 240 kilometres southwest 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 sulphide (VMS)-hosted copper and zinc, epithermal and orogenic gold, and iron oxide copper/gold (IOCG) deposits.
Simplified geological map of the Arabian Shield, with the locations of key mines within the KSA. Major tectonostratigraphic terranes are delineated by suture and major fault zones. Shaib Marqan is within the Ar Rayn Terrane, on the right of the figure.
The Ar Rayn Terrane in general has been the focus of exploration activities since the 1950s. Notably, the Al Amar gold-silver-zinc-copper deposit, the Khnaiguiyah zinc-copper-iron-manganese deposit and the Jabal Idsas magnetite prospect are within this terrane.
Shaib Marqan stands out as a relatively under-explored area of the Ar Rayn Terrane in close proximity to several established deposits.
Systematic exploration
"Systematic exploration across the licence area could lead to the rapid identification of a significant mineral deposit within the Ar Rayn Terrane,” Williams 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.”
BSMC MoU
Earlier this year, AuKing entered into an MoU with BSMC, a member of the Segia Gulf Group, a large Saudi Arabian group that has had more than 40 years of operating experience in the Kingdom (TADAWUL:4280), mostly in the construction sector.
In recognition of the substantial growth in the Saudi mining sector, BSMC has recently turned its focus towards securing projects that have the potential for significant mineral exploration and development, particularly in the western region of Saudi Arabia.
The purpose of the MoU was for the joint exploration and development of mineral projects in Saudi Arabia with a special focus on gold, copper, silver and zinc.
MoU details
BSMC will make available to AuKing the opportunity to participate in existing projects owned by them as well as jointly bid for new projects offered by the Government from time to time.
AuKing is intended to sole fund exploration and development activities on selected mineral projects (including Shaib Marqan) up to the point of completion of a feasibility study.
The interests of the parties will be allocated on a 70/30 basis as between AuKing and BSMC, which will assist AuKing on a best endeavours basis with all necessary local administration and logistical arrangements in Saudi Arabia and to raise funds for project activities.
Under the terms of the AuKing/BSMC bid, a minimum exploration commitment for the first two years of activities of US$1.2 million was submitted, together with details of the proposed activities – much of which will depend on the extent of successful exploration results.