AuKing Mining Ltd (ASX), in partnership with Saudi Arabian firm Barg Alsaman Mining Company (BSMC), has emerged victorious in securing the Shaib Marqan exploration licence, marking a significant milestone in Saudi Arabia’s mining sector.
Securing the Shaib Marqan Licence
In a fiercely contested bid process orchestrated by the Saudi Ministry of Industry and Mineral Resources, AuKing Mining and BSMC successfully obtained the Shaib Marqan exploration licence. This achievement comes as part of the ministry’s 6th Licensing Round, aimed at fostering exploration and development within Saudi Arabia’s rich mineral landscape.
The Shaib Marqan project spans an impressive 91.8 square kilometres, a region noted for its high potential in orogenic vein-hosted gold mineralisation. According to an Information Memorandum (IM) released by the Ministry in August 2024, the area remains significantly under-explored, presenting lucrative opportunities for pioneering mining ventures.
High Prospectivity in a Prime Location
Shaib Marqan is situated within the renowned Arabian-Nubian Shield (ANS), specifically in the Ar Rayn Terrane along its eastern margin. Despite being smaller compared to other terranes within the ANS, the Ar Rayn Terrane is celebrated for hosting a multitude of mineral systems, including volcanogenic massive sulphide (VMS)-hosted copper and zinc, epithermal and orogenic gold, and iron oxide copper/gold (IOCG) deposits.
The project’s proximity to the Al Amar gold mine, located just 100 kilometres northwest, which yielded nearly 30,000 ounces in 2022, underscores its potential. The IM highlighted the presence of at least 22 ancient workings over quartz veins in the Shaib Marqan area. Moreover, 50 vein and wall-rock samples reported an average of approximately 5.8 g/t gold, with peaks reaching up to 40 g/t. The quartz veins extend up to 300 metres in length and up to 10 metres in width, indicating substantial mineralisation prospects.
Strategic Partnerships and Future Prospects
Managing Director Paul Williams expressed his enthusiasm about the successful bid, stating, “AuKing is very pleased to have secured the Shaib Marqan exploration licence with our 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.”
Williams further elaborated on the strategic importance of Shaib Marqan, noting its location within the highly mineralised Ar Rayn Terrane. “Shaib Marqan is situated in a highly mineralised area within the famous Arabian-Nubian Shield geological region and is in close proximity to various established deposits,” he added. This strategic positioning is expected to facilitate efficient exploration and potential development, leveraging the existing mineral infrastructure in the vicinity.
Exploration Plans and Investment
With the licence secured, AuKing Mining and BSMC are set to commence detailed exploration activities in the coming weeks. These will involve comprehensive geological surveys, drilling programs, and metallurgical testing to assess the full extent of the gold deposits. The focus will be on delineating the ore bodies, understanding the geological structures, and evaluating the economic viability of the project.
The Ministry of Industry and Mineral Resources has indicated that discussions will proceed over the next few weeks to finalize the terms of the exploration licence. This includes agreements on environmental management, local community engagement, and adherence to Saudi Arabia’s regulatory frameworks.
Economic Impact and Local Development
The successful bid by AuKing Mining and BSMC is expected to have a positive impact on the local economy. Gold exploration and eventual mining activities can create numerous job opportunities, stimulate local businesses, and contribute to the region’s economic diversification efforts. Moreover, the project aligns with Saudi Arabia’s Vision 2030, which emphasizes the development of non-oil sectors to ensure sustainable economic growth.
Project Highlights:
- Location: Shaib Marqan, Ar Rayn Terrane, Arabian-Nubian Shield
- Size: 91.8 square kilometres
- Potential: High-grade gold mineralisation with average 5.8 g/t gold
- Nearby Mine: Al Amar gold mine (30,000 ounces in 2022)
- Partners: AuKing Mining Ltd (ASX
) and Barg Alsaman Mining Company (BSMC)
Historical Significance and Future Exploration
The Arabian-Nubian Shield has long been a hotspot for mineral exploration, known for its diverse and abundant mineral resources. The successful acquisition of the Shaib Marqan licence by AuKing Mining and BSMC adds to the region’s rich mining heritage, promising further discoveries and advancements in gold extraction technologies.
Historically, the region has attracted numerous international mining companies, drawn by the potential for significant mineral yields. The Shaib Marqan project is poised to continue this trend, potentially setting new benchmarks in gold exploration and production within Saudi Arabia.
Table: Key Features of the Shaib Marqan Exploration Licence
| Feature | Description |
|---|---|
| Licence Area | 91.8 square kilometres |
| Mineralisation Type | Orogenic vein-hosted gold |
| Sample Highlights | 50 vein and wall-rock samples averaging ~5.8 g/t gold |
| Maximum Gold Grade | 40 g/t |
| Vein Dimensions | Up to 300 metres in length and 10 metres in width |
| Proximity to Al Amar | 100 kilometres southwest of Riyadh |
| Geological Setting | Ar Rayn Terrane, Arabian-Nubian Shield |
This table encapsulates the essential aspects of the Shaib Marqan project, highlighting its promising geological features and strategic significance.
Commitment to Sustainable Mining
AuKing Mining and BSMC are committed to conducting their exploration and potential mining operations in an environmentally responsible manner. This includes implementing sustainable practices, minimizing environmental impact, and engaging with local communities to ensure that the project benefits the broader population.
Sustainability Initiatives:
- Environmental Management: Adhering to strict environmental standards to protect local ecosystems.
- Community Engagement: Involving local communities in project planning and development.
- Sustainable Practices: Utilizing advanced technologies to ensure efficient and responsible mining operations.
These initiatives are integral to the project’s success, ensuring that it not only contributes to economic growth but also promotes sustainable development within the region.
Market Reaction and Future Outlook
The announcement of AuKing Mining and BSMC securing the Shaib Marqan licence has been met with positive reactions from investors and market analysts. The project’s high potential for gold production is seen as a strong addition to AuKing’s portfolio, enhancing its position in the global mining industry.
Investors are optimistic about the project’s prospects, given the favorable geological indicators and the strategic partnership between AuKing Mining and BSMC. The exploration licence is expected to unlock significant value, driving future revenue growth and shareholder returns.
AuKing Mining’s successful bid for the Shaib Marqan exploration licence marks a pivotal moment in Saudi Arabia’s mining sector. With its high potential for gold mineralisation and strategic location, the project is set to contribute significantly to the Kingdom’s economic diversification and sustainable growth goals. As AuKing Mining and BSMC embark on their exploration journey, the industry watches keenly, anticipating groundbreaking discoveries and robust development in one of the world’s most promising mining regions.
