By:Mining

AuKing Mining (ASX:AKN) has secured an exploration licence, known as Shaib Marqan, as part of the Saudi Ministry of Industry and Mineral Resources’ sixth licensing round bid process.

The project, which covers 91.8km2, is considered prospective for orogenic vein-hosted gold mineralisation and is under-explored. The Al Amar gold mine is 100km to the north-west and produced nearly 30,000 ounces of gold in 2022.

AuKing has received formal notification of the tender for the Shaib Marqan licence area. Discussions will now proceed over the next few weeks with an aim to finalise the terms of the grant.

Meanwhile, AuKing has entered into a memorandum of understanding (MoU) with local Saudi Arabian partner Barg Alsaman Mining Company (BSMC) for the joint exploration and development of projects in Saudi Arabia.

Under the terms of the bid, a minimum exploration commitment of US$1.2 million ($1.81 million) has been submitted, coupled with details of the proposed activities — much of which will depend on the extent of exploration results.

AuKing says the MoU will focus on cooperating with BSMC on gold, copper, silver, and zinc projects, as well as BSMC providing opportunities for AuKing to participate in existing projects and jointly bidding for new projects offered by the government from time to time.

Under the MoU, AuKing will also sole fund exploration and development activities on selected projects, including Shaib Marqan, through to the completion of a Feasibility Study. The interest of the parties will be allocated on a 70:30 basis between AuKing and BSMC.

BSMC will also assist AuKing with all necessary local administration and logistical arrangements in Saudi Arabia and with raising funds for project activities.  

Managing Director Paul Williams says Shaib Marqan sits in a highly mineralised area within the famous Arabian-Nubian Shield geological region and lies within close proximity to various established deposits.

“We understand that this sixth 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,” he says.

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

“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.”

Following the announcement, AuKing’s share price spiked 66.66% to $0.005.

AuKing says that at least 22 ancient workings over quartz veins have been noted in the licence area, with 50 vein and wall-rock samples averaging 5.8 grams per tonne (g/t) gold, up to a maximum of 40g/t gold.

Saudi Arabia’s Vision 2030 reform agenda aims to elevate 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.

Minerals are considered key inputs in Saudi’s Vision 2030 objectives, which includes achieving a green transition, digitising the economy, becoming a global hub for technology and connectivity, producing nuclear energy, and localising military procurement.

AuKing Mining is diversified mineral explorer with a primary focus on acquiring and developing projects prospective for copper, uranium, base and precious metals.