Sun Peak Metals is working on VMS and gold targets across roughly 1,000 square kilometres in the Arabian-Nubian Shield in Saudi Arabia. The portfolio includes Safra, Halahila, Al Miyah, two pending Southeast and Southwest Massa licenses, and seven new licenses acquired in Round 9. The conversation focused on the start of the company’s maiden drill program at Safra, the planned follow-up at Halahila, the Round 9 ground, treasury position, and the broader Saudi operating environment.

TL;DR

Drilling has started at Safra with an initial 1,500 metre program, with assays expected around end of June. The rig then moves to Halahila for a roughly 2,500 metre program, with the drill plan to be released in two to four weeks. Geologically, Safra is unusual due to base metals and a dolomite horizon in the gossan, while Halahila looks closer to a traditional VMS gossan with up to 18 g/t gold and 180 g/t silver in surface samples over a 650 metre strike that may extend several kilometres. Cash sits near C$4 million, projected to be C$2.5 to C$3 million by end of August, with a larger raise planned in the fall on the back of drill results and a possible smaller raise sooner tied to Round 9 work. G&A is running near C$300,000 per month.

What have they done for shareholders lately?

Since the last interview about three months ago, Sun Peak completed mapping, sampling, trenching, gravity and time-domain EM (Crone SQUID) work across Safra and, brought in a structural geologist at Halahila, and finalized seven Round 9 licenses in late March/early April after winning a multi-round auction out of roughly a dozen blocks they targeted. They started soil geochem, prospecting and detailed mapping on the new ground immediately. The Safra drill program started on the scheduled date, which CEO Davis said is the first time in his career a drill campaign has hit its planned start to the hour. Operations continued through the recent Persian Gulf tensions with only a two week pause for Ramadan.

How much money do they have and what are they spending it on?

Treasury was approximately C$4 million at the time of the interview, with no debt. G&A is around C$300,000 per month for a team of 12 geologists plus consultants. Budget projections show C$2.5 to C$3 million in cash by end of August, which Davis said covers the planned drilling at Safra and Halahila and the Round 9 work commitments. Drilling cost per metre was not disclosed but Davis said it is the lowest he has paid in over 20 years, helped by cheap fuel (roughly C$0.60 to C$0.70 per litre) and easy road access. Water is trucked in from Hanakia, about 80 km west of Safra. Plan A is to drill first and raise capital on the back of results in the fall, with a possible smaller earlier raise to accelerate Round 9 work, and ongoing discussions with strategic investors including Saudi-based parties interested in taking equity.

Upcoming catalysts

• – Technical: completion of the 1,500 metre Safra drill program and first assays expected around end of June 2026; release of the Halahila drill plan in roughly two to four weeks followed by a circa 2,500 metre program. Initial mapping, geochem and target prioritization results on the seven Round 9 licenses, including renaming the project from “Round 9” to target-specific names.
• – Operational: drill rig move from Safra to Halahila after the 1,500 metre program regardless of results, to meet the 2,000 metre commitment there. Ongoing compilation of gravity, EM and structural data to finalize Halahila drill targeting.
• – Corporate: a possible smaller financing in the next month tied to Round 9 acceleration, a larger planned raise in the fall, potential strategic investment from Saudi parties, and participation in Round 10 and Round 11 license auctions. Davis also mentioned the Exploration Enablement Program providing up to 25% cost rebates and potential development loans of up to 75% of capex if a project advances.

Risks in the next months

Safra is geologically atypical for the region, with base metals and a dolomite horizon in the gossan that the team has not fully modeled, meaning the deposit model and continuity are unproven until drilling. Halahila structural geometry is still being worked out, with a worst case scenario of an eroded anticline where only the gossan remains. Assay turnaround at the Jeddah labs is untested for Sun Peak. The company will need to raise capital in the fall, with the size and terms dependent on drill results, creating dilution risk. Regional geopolitical tensions in the Persian Gulf have not affected operations but have weighed on inbound investor interest and broader market sentiment. The Ethiopian assets remain under force majeure with no near-term resolution visible, costing roughly C$15,000 per month to maintain.

Sun Peak Metals Interview

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