Highlights

  • Sierra Nevada Gold shares rose 18.18% to AUD 0.065 on 1 May 2026, following the latest corporate update.
  • The company secured five exploration licences at the As Safra Project via Royal Decree.
  • Approval represents the highest level of regulatory clearance in Saudi Arabia.
  • Three drill rigs are already on site, enabling immediate commencement of drilling.
  • Surface programs confirmed mineralisation across a corridor exceeding 5.5 km.

Sierra Nevada Gold Inc (ASX:SNX) shares climbed 18.18% to AUD 0.065 during the afternoon session on 1 May 2026, extending gains to approximately 225% over the past year. Today’s increase follows the release of a positive operational update, with the company confirming a key milestone that enables the commencement of drilling at its As Safra Project in Saudi Arabia.

Sierra Nevada Gold is an exploration-focused company engaged in identifying and developing precious and base metal projects across prospective regions. The company holds a portfolio of projects in Nevada, including gold, silver, and copper-gold opportunities, while also expanding its presence internationally through its activities in Saudi Arabia. The addition of the As Safra Project complements its existing portfolio by allowing year-round exploration activities across different jurisdictions.

Royal Decree Secures Exploration Licences

The company announced that it has been granted five Exploration Licences covering the As Safra Project in the Kingdom of Saudi Arabia. These licences were awarded by Royal Decree, representing the highest level of sovereign approval within the country’s regulatory framework.

The licences were secured through the Kingdom’s Round 9 bidding process, with the company satisfying all requirements for a full grant. This milestone formally clears the path for ground-disturbing exploration activities across the project area.

The granting of licences at this level reflects regulatory endorsement and provides a level of certainty for ongoing exploration activities. It also aligns the project with broader national initiatives focused on developing the Mining sector.

Transition from Targeting to Drilling

With the licences now in place, Sierra Nevada Gold has indicated that it is ready to commence its maiden drilling program. Three drill rigs have already been mobilised to the site, allowing for immediate progression into drilling activities.

The company noted that this transition marks a shift from exploration targeting to on-ground execution. Initial drilling will focus on priority targets identified through prior technical work, including geochemical, geological, and geophysical programs.

This progression enables the company to begin testing areas of interest that have been defined through earlier exploration efforts, marking a key operational step for the project.

Exploration Work Defines Large Mineralised System

Exploration activities conducted at As Safra have identified a district-scale copper–gold system, with mineralisation extending across a corridor exceeding 5.5 kilometres in length. Surface programs have confirmed widespread copper and gold presence, supported by geochemical sampling and Geophysical surveys.

The project exhibits clear metal zonation, transitioning from a central copper-gold core to peripheral zones containing lead, zinc, and silver. Pathfinder elements such as bismuth and tellurium have also been identified, indicating proximity to potential high-grade zones within the system.

Geophysical datasets, including ground magnetic surveys, have highlighted structural corridors and alteration zones associated with mineral deposition. These datasets are being refined further through ongoing interpretation to support drill targeting.

Gravity surveys have contributed to identifying density contrasts linked to intrusive bodies and mineralisation, while induced polarisation (IP) surveys are expected to refine targets associated with sulphide accumulations at depth.

The integration of these datasets has resulted in the identification of multiple high-priority drill targets. Among these is the As Safra SE zone, where surface mineralisation coincides with geophysical anomalies that have not yet been drilled.

Historic Data Highlights Prospectivity

The As Safra Project area contains evidence of historical exploration, including drilling and surface sampling. Previous drilling programs have recorded sulphide-rich intercepts, including intervals such as 24.55 metres at 1.69% copper and 5.0 metres at 4.07% copper.

Rock-chip sampling has returned results of up to 244 grams per tonne gold and 11% copper, indicating the presence of high-grade mineralisation within the system.

Historic induced polarisation surveys have also identified multiple chargeability anomalies, interpreted as potential sulphide bodies at depth. Many of these anomalies remain untested, presenting additional exploration opportunities.

The presence of historical workings and widespread mineralisation at surface further supports the prospectivity of the project area.

Government Support and Operating Environment

The company highlighted the role of government support in advancing the project to the licence grant stage. Sierra Nevada Gold has worked with key agencies, including the Ministry of Industry and Mineral Resources and the Saudi Geological Survey.

Saudi Arabia’s Vision 2030 initiative places emphasis on developing the Mining sector as part of broader economic Diversification efforts. As part of this strategy, the country has implemented a modern licensing regime, streamlined permitting processes, and introduced exploration incentives.

These incentives include reimbursement initiatives of up to US$2 million per exploration licence, alongside access to high-quality geological datasets. The availability of such data supports exploration efficiency and reduces early-stage risk.

The operating environment is also supported by access to local contractors and workforce development initiatives, contributing to project execution.

Local Capability Expansion Through AAM

Exploration activities at As Safra are being conducted through the company’s wholly owned Saudi Subsidiary, Arabian American Minerals (AAM). The Subsidiary is expanding its national workforce to support exploration programs and operational requirements.

This approach includes engagement with local contractors and service providers, supporting the development of in-country capability. It also aligns with the Kingdom’s objectives related to local participation and economic development.

The company noted that this strategy supports efficient program execution while contributing to broader industry development within Saudi Arabia.

Next Steps Focus on Drilling and Data Integration

Looking ahead, Sierra Nevada Gold plans to continue advancing its geophysical programs, including ongoing magnetic and gravity surveys, as well as the addition of induced polarisation surveys.

These datasets will be refined through further interpretation and modelling to enhance drill targeting and support geological understanding of the project.

With drilling now set to commence, initial programs will focus on testing high-priority targets identified through the integration of exploration data. The company expects that results from these activities will inform ongoing exploration and development of the project.

What This Means for Investors?

The latest update from Sierra Nevada Gold marks a transition from exploration planning to execution, with the granting of licences enabling the start of drilling at the As Safra Project. The presence of multiple drill rigs on site indicates readiness to begin testing identified targets.

The project’s scale, supported by extensive surface mineralisation and historical data, provides a framework for ongoing exploration activities. The integration of multiple datasets has defined priority zones, which are expected to be the focus of initial drilling efforts.

The company’s position within Saudi Arabia’s Mining sector, supported by regulatory approval and government initiatives, forms part of the broader context for the project’s development.

With drilling activities set to commence, investors are likely to monitor exploration progress and results as the next phase unfolds.