AuKing Mining Ltd, in collaboration with Barg Alsaman Mining Company (BSMC), has won the Shaib Marqan exploration license in Saudi Arabia through a competitive bid organized by the Saudi Ministry of Industry and Mineral Resources.
The 91.8-square-kilometer project, highlighted in an Information Memorandum from August 2024, is seen as highly promising for orogenic vein-hosted gold mineralization and remains largely unexplored.
Gold Potential in the Region
The Shaib Marqan area is located near the Al Amar gold mine, which produced nearly 30,000 ounces of gold in 2022. The region has evidence of 22 ancient workings and gold samples averaging 5.8 g/t, with some reaching up to 40 g/t.
Negotiations are underway to finalize the exploration license terms for Shaib Marqan.
Strategic Significance
Managing Director Paul Williams expressed satisfaction with securing the license, noting the significant global interest in the bidding process. The area is part of the Arabian-Nubian Shield, known for its rich mineral deposits.
Location and Geology
Situated 240 kilometers southwest of Riyadh, Shaib Marqan is within the Ar Rayn Terrane of the Arabian-Nubian Shield. This terrane, though smaller, hosts diverse mineral systems, including copper, zinc, gold, and iron oxide deposits.
The Ar Rayn Terrane has been a focus of exploration since the 1950s, with notable deposits such as Al Amar and Khnaiguiyah. Shaib Marqan remains relatively under-explored despite its proximity to these deposits.
Exploration Plans
Williams emphasized the potential for significant discoveries through systematic exploration. AuKing and BSMC aim to finalize the exploration license soon.
Partnership with BSMC
Earlier this year, AuKing signed a Memorandum of Understanding (MoU) with BSMC, a member of the Segia Gulf Group, to jointly explore and develop mineral projects, focusing on gold, copper, silver, and zinc.
MoU Provisions
BSMC will offer AuKing opportunities to participate in existing projects and bid for new ones. AuKing will fund exploration activities up to the feasibility study stage, with interests split 70/30 between AuKing and BSMC. An initial exploration commitment of US$1.2 million over two years has been agreed upon, contingent on exploration success.
