Zenith Minerals takes another step forward in its multi-million-ounce gold hunt

Zenith Minerals’ (ASX: ZNC) strategy is now clear: large-scale Australian projects, 100% ownership, high-impact greenfields exploration and a focus on gold and copper (plus silver).

Leading the pack in the Zenith portfolio are the recent discoveries at the Red Mountain gold-silver project, inland from Bundaberg in Queensland.

This week, the company reported it had new assay results from Red Mountain outlining a high-grade gold zone extending more than 300m on surface and remaining open at depth.

The new results so far include only gold, with mineralisation defined only to about 100m down hole.

Silver results remain pending for all 21 holes drilled in the recent program.

The gold zone is located on the western flank of the Red Mountain breccia pipe, with resampling of reverse circulation drilling returning 15m at 3.5 grams per tonne gold, including 2m at 22.4g/t.

There are also new results from recent RC drilling including one hole which hit two separate mineralised zones — the first zone returning 2m at 2.8g/t including 1m at 5g/t, the second zone of 5m at 1g/t, including 1m at 4.2g/t.

Chief executive officer Mick Clifford says drilling has outlined a coherent, high-grade gold zone that provides a clear target for further follow-up work.

Zenith’s vision to focus on Australian projects

The company’s vision is to build a gold and base metals business with a focus on its 100%-owned ground, while leaving joint venture partners to make progress with third-party funds.

“Why Zenith?” is the question posed in the company’s latest presentation.

An Australian focus is the first reason given (with drilling in progress on two projects).

Full ownership of its assets is offered as another plus.

Thirdly, “gold projects are located within tier one regions that have proven multi-million ounce historic or current endowments.”

Fourth, Zenith is targeting large scale deposits capable of significant value-adding.

Then there’s the company’s strategy across an extensive portfolio to rank the projects by technical merit.

Lastly, Zenith’s portfolio also includes base metals project with drilling planned.

Well credentialled leadership team

The Zenith leadership team has considerable experience.

Mr Clifford was previously Australia regional exploration manager with AngloGold Ashanti (ASX: AGG) and was managing director of PacMag Metals until it was taken over in 2010 by Entrée Gold.

Chairman Peter Bird previously held senior positions with the former WMC, Newmont and the previous Normandy Mining.

Former chairman and now non-executive director Mike Joyce is a geologist with 38 years of experience and was responsible for discovering the Carosue Dam and Davyhurst deposits; he was managing director at the earlier Giralia Resources until it was taken over by Atlas Iron (ASX: AGO), which subsequently delisted in 2018 after it was acquired by Hancock Prospecting’s subsidiary Redstone Corporation.

Now to the projects.

Projects in Queensland, NSW and WA

Drilling at Red Mountain has previously returned encouraging gold grades including 13m at 8g/t.

This project was a virgin gold discovery which has been assessed as having a 2Moz potential.

Last May drilling hit the previously undiscovered felsic breccia complex.

Next on the list is the Split Rocks project in WA which has targets over 18km beneath and along strike from current mines and resources.

This project covers 650 square kilometres in the under-explored Forrestania greenstone belt near Southern Cross.

In August, Zenith reported drilling intersections of high-grade, near surface gold mineralisation including 32m at 9.4g/t and 2m at 14.5g/t.

It is also prospective for lithium, located from the Mt Holland pegmatite project, 50:50 owned by Wesfarmers (ASX: WES) and Chile’s SQM.

Back in Queensland, a maiden test drill is planned this month at the Develin Creek copper-gold property west of Rockhampton. It will test the new Snook copper target located 30km south a Zenith’s JORC resource deposit.

There is the Flanagan’s gold-copper project which has seen limited exploration over the past 32 years. Further sampling is required to define a drill target.

In NSW, Zenith is planning a maiden drill test at the Jackadgery gold project where historic trenching returned 1.2g/m over 160m.