Royal Road Minerals Ltd (TSX-V:RYR, OTC:RRDMF) said its joint venture company, Royal Road Arabia (RRA), has won the bid for the Al-Miyah copper and gold tender area in Saudi Arabia.
RRA is a 50-50 partnership between Royal Road Minerals and MIDU, a Saudi investment holding company.
The Al-Miyah area includes three contiguous exploration licenses in Asir Province, about 150 kilometers northwest of Royal Road's Jabal Sahabiyah exploration licences. The area covers 234 square kilometers of historic copper and gold occurrences.
Exploration conducted in 1969 and ten years later identified significant mineralization, including a 1.5-kilometer magnetic anomaly and high copper and gold samples.
RRA recently conducted field reconnaissance and identified new mineralized gossans and promising rock-chip samples. These samples showed up to 5.9% copper and 1.3 grams per tonne of gold.
It also completed a soil survey at the Hishashat-al Hawi prospect. The survey found a significant copper anomaly over an area of 250 meters by 125 meters.
RRA plans to conduct detailed field mapping, soil sampling, and drone-based surveys to identify drill targets by the end of the year.
The company has committed $3.9 million for the first two years of exploration and may receive up to $1.1 million per exploration licence in reimbursements from Saudi Arabia's Exploration Enablement Program.
Additionally, it is working to qualify for the Saudi Human Resources Development Fund, which could help with local salaries and professional development.
This tender was awarded through a merit-based process that required a proposed exploration program and minimum expenditure commitments. RRA's successful bid marks a significant step forward in exploring and developing the Al-Miyah area.
Chief executive Tim Coughlin said: "It's been 45 years since exploration work was conducted at Al-Miyah.
"Commodity focus and our understanding of exploration geology has changed profoundly since then.
"Our team have identified immediate copper and gold potential at known historic occurrences and at new prospects throughout the license areas.
"Saudi Arabia's vision and proactive support for the mining sector is unparalleled as is clearly evidenced by its innovative financial assistance schemes. It is a privilege for our organization to be at the forefront of mineral exploration in the Kingdom at this exciting transformative time"