Zenith Minerals (ASX: ZNC) has uncovered more gold mineralisation as exploration continues at its wholly-owned Red Mountain project in Queensland.
The company noted latest assays confirm the high-grade gold shoot is shallow and northeast plunging. Mineralisation was hit 80m below a previous intersection of 5m at 10.4 grams per tonne gold.
It has been defined to a 200m depth but remains open down plunge.
Highlight assays from this latest hole were 21m at 1.9g/t gold, including 9m at 3.2g/t gold, 2m at 10.8g/t gold, 1.3m at 5g/t gold; 3m at 2.4g/t gold; 1m at 12.5g/t gold; and 11m at 0.5g/t gold.
Zenith chairman Peter Bird said it was another “solid high-grade intersection” at Red Mountain that firms up the location of the high-grade gold shoot.
“The company has, to-date, only tested the northeast quadrant representing a fraction of the prospective ring structure,” he explained.
Advancing Red Mountain gold project
Zenith considers the Red Mountain gold mineralisation to be analogous to other known deposits in the region including Mt Rawdon and Resolute Mining’s (ASX: RML) Mt Wright deposit within the Ravenswood mine.
The Mt Wright was an underground operation with combined production and reserves in excess of 900,000oz gold.
Ongoing diamond drilling at Red Mountain aims to firm up a resource, with the company also planning to test extensions to the high-grade shoot.
Further gold investment
Last week, Zenith boosted its gold exposure even further by taking up a staged 22.5% position in pre-IPO vehicle Oxley Resources which plans to advance the Cowarra gold project in New South Wales.
BHP (ASX: BHP) originally mined the project in the 1930s and produced 14,000oz gold.
Since then, historic drilling has unearthed 35m at 2.3g/t gold from 23m, and 15m at 4.2g/t gold.