en.Wedoany.com Reported - Sun Peak Metals Corp. (PEAK:TSX.V; SUNPF:OTCQB) announced on June 8 that it has initiated its first diamond drilling program, approximately 2,500 meters, at the wholly-owned Halahila Gold-Copper Volcanogenic Massive Sulfide (VMS) Project in the Kingdom of Saudi Arabia.
This drilling program follows the company's previous drilling activities at the Safra VMS Project and represents Sun Peak's second drilling operation in Saudi Arabia this year. The initial drilling phase will focus on the Halahila Main Zone, where recent exploration has revealed a 650-meter-long mineralized gossan (the exposed upper portion of a mineral deposit or vein), up to 30 meters wide. The program may be expanded based on initial drilling results.
Sun Peak Exploration Manager Arron Albano stated that Halahila has rapidly become one of the most compelling exploration targets in the company's Saudi project portfolio, exhibiting many characteristics of a large VMS system, including extensive hydrothermal alteration, a 650-meter-long gold-silver-bearing gossan, strong surface geochemical signatures, and conductive targets at depth that may represent sulfide mineralization. Recent exploration has also identified additional mineralized gossans along a 5-kilometer strike south of the Halahila Main Zone, highlighting the regional potential of the system, with a total strike length of 10 kilometers. Albano noted that this initial drilling program provides the first opportunity to test deep targets and assess the potential for a significant new VMS discovery.
The company reported that recent surface sampling assays from the Halahila Main Zone returned gold grades up to 16.35 g/t and silver grades up to 180 g/t. Additionally, geophysical surveys conducted in the area have detected electromagnetic (EM) conductors beneath the Halahila Main Zone, suggesting potential targets for subsurface sulfide mineralization. After successfully drilling 10 holes totaling 1,242 meters at two target areas of the Safra VMS Project, drilling equipment has been mobilized to Halahila. Core samples from Safra have been sent to SGS Laboratories in Turkey for assay, with results to be released upon receipt.
Sun Peak President and CEO Greg Davis stated that the company's immediate initiation of drilling at Halahila following the successful completion of the first drilling program at Safra, advancing multiple projects from exploration to the drilling stage, reflects the strength of the team and the advantages of operating in Saudi Arabia—a favorable regulatory environment, excellent infrastructure, and the government's strong commitment to mining continue to accelerate project development.
The Halahila Project is located within the Precambrian Arabian-Nubian Shield and comprises a sequence of regional-scale volcanic and sedimentary rocks considered favorable for hosting precious-metal-rich VMS mineralization. The initial drilling at the site has been strategically planned to explore priority targets beneath the Halahila Main Zone, a decision made following integrated geological mapping, geochemical sampling, and geophysical surveys. Drilling will specifically target areas identified by Time Domain Electromagnetic (TDEM) surveys, which detected conductive anomalies over a 4.1-kilometer strike length and beneath a 650-meter-long gossan interpreted to indicate the potential presence of sulfide mineralization at depth. Recent exploration has identified multiple additional gold-silver-rich gossans approximately 5 kilometers south of the Halahila Main Zone. These newly discovered gossan zones remain untested and will form the basis for future drilling targets.
The company stated that the planned 2,500-meter drilling program will consist of multiple diamond drill holes designed to assess the geometry, continuity, and potential sulfide content of the main target zone. Recovered core will be logged in detail, sampled, and sent to accredited laboratories for analysis, with results expected following the completion of the program. Results from the Safra drilling and Halahila work are expected to provide ongoing exploration updates throughout the remainder of 2026. Both the Halahila and Safra projects benefit from favorable access and logistical conditions, are key components of Sun Peak's wholly-owned exploration portfolio in Saudi Arabia, and are part of the company's expanding cluster of VMS and precious metal projects within the Arabian-Nubian Shield. Exploration to date has revealed extensive hydrothermal alteration, numerous gossan occurrences, precious metal enrichment, and geophysical features indicative of VMS mineralization.
According to comments by Jeff Clark and Daniel Flynn of Paydirt Prospector on May 28 regarding the stock, the authors stated they like companies that deliver on their promises and appreciate those that act quickly, which is exactly what they see from Saudi Arabia-focused exploration company Sun Peak. Shortly after initiating its first drilling program at the Safra project, Sun Peak rapidly advanced exploration on a large package of licenses recently granted by the Saudi government, yielding encouraging results. An independent technical review has verified multiple high-priority targets across seven licenses covering approximately 632 square kilometers, identifying a total of 58 initial exploration targets, including 16 potential VMS occurrences, 2 potential orogenic gold occurrences, and 40 targets with characteristics of both. Fifteen of these targets have been selected for immediate follow-up, with plans to advance drilling as soon as possible. At Halahila, recent exploration has delineated a large target zone, with historical sampling results showing gold grades up to 16.35 g/t and silver grades up to 180 g/t. Clark and Flynn recommended buying the stock and stated that Sun Peak remains the first foreign junior mining company to obtain 100%-owned exploration licenses in Saudi Arabia, and if results confirm the company's strong view on early-stage discovery potential, the potential for re-rating remains robust.
According to Kitco NewsWire on June 9, spot gold prices rose to approximately $4,338.80 per ounce in early U.S. trading Tuesday, up 0.20%, while silver traded at $68.475, up 0.44%. The rise in precious metal prices came as oil prices retreated, with market participants awaiting the May Consumer Price Index (CPI) due Wednesday. The macroeconomic environment remains challenging for precious metals, primarily influenced by last Friday's stronger-than-expected employment report, with the 10-year Treasury yield holding above 4.5% and the U.S. dollar index hovering near two-month highs. According to Kitco News' Neils Christensen on June 8, following last Friday's decline in gold prices, further declines may be possible. FOREX.com market analyst Fawad Razaqzada noted that the gold price chart has suffered significant technical damage, with gold breaking below its 200-day moving average last Friday. If inflationary pressures unexpectedly intensify, gold prices could approach the key support level of $4,000 per ounce this week. He recalled a similar scenario in September 2023, when gold fell an additional 5% after breaking below its 200-day moving average. Razaqzada noted that the next important support level lies at the long-term uptrend line near $4,230, and if selling pressure persists, a move toward $4,000 cannot be ruled out.
Sun Peak Metals has a market capitalization of C$67.3 million, with 164.22 million shares outstanding and a 52-week price range of C$0.15 to C$0.55. Management and insiders hold approximately 23% of the shares, with the remainder held by retail investors.
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