Zenith Minerals Advances Red Mountain Gold Project with New 3D Modelling
ZNC (ZNC) Share Update September 2024 Monday 23rd
Zenith Minerals Advances Red Mountain Gold Project with New 3D Modelling
Zenith Minerals Limited (ASX: ZNC) has made significant progress in its preparations for a new drilling campaign at the Red Mountain Gold Project in Queensland, Australia. The upcoming campaign will focus on testing highly prospective targets identified through comprehensive re-interpretation of existing drill data, geophysical analysis, and updated 3D geological modelling.
Instant Summary:
- Red Mountain Drilling Campaign Advances: Preparations for the upcoming drilling campaign at the Red Mountain Gold Project in Queensland are progressing well.
- Updated 3D Geological Model: The 3D geological model has been updated, integrating drill data and newly re-interpreted geophysical surveys.
- Expanded Sampling and Core Analysis: Additional core samples from previous drilling campaigns have been re-evaluated for their gold prospectivity.
Exploration Update
Zenith Minerals Limited (ASX: ZNC) is pleased to announce significant progress in its preparations for a new drilling campaign at the Red Mountain Gold Project in Queensland. The upcoming campaign will focus on testing highly prospective targets identified through a comprehensive re-interpretation of existing drill data, geophysical analysis, and updated 3D geological modelling.
The Red Mountain Drilling Campaign is advancing well, following up on the successful drilling campaign in mid-2023 that returned highly significant results at depth, including 118m @ 0.54g/t from 225m in hole ZRMDD052. This campaign will target zones identified through an updated 3D geological model and the reinterpretation of previously collected geophysical data, helping to refine our understanding of the Red Mountain system and better define potential target areas for drilling.
Updated 3D Geological Model and Re-interpreted Geophysics
The 3D geological model has been updated, integrating drill data and newly re-interpreted geophysical surveys. This refined interpretation has not only generated additional high-potential targets but also highlighted potential for gold mineralisation in previously underexplored zones. This provides clearer insights into the structure and mineralisation trends at Red Mountain.
As part of the updated geological interpretation, additional core samples from previous drilling campaigns have been re-evaluated for their gold prospectivity and will be cut and sent to the lab in the coming weeks for assay. A total of 454 metres of additional core has been selected for analysis. Previously, 344m of the original 1,450m drilled in 2023 were selectively sampled and sent for analysis. With the refined 3D model and geophysical data, these newly submitted samples are expected to provide valuable insights into the extent and grade of mineralisation at depth.
Broader Strategy and Forward-Looking Plans
The Red Mountain Gold Project forms a key part of Zenith’s broader strategy to transition from an exploration-focused company to a multi-asset gold producer. The Company is laying the groundwork for future drilling campaigns while advancing its other core gold projects, including Dulcie Far North in Western Australia, where preparations for an upcoming drilling campaign are also underway.
Managing Director, Andrew Smith, commented: 'We are thrilled to advance preparations for drilling at Red Mountain, a project that we believe holds substantial potential. Our team has worked diligently to refine the geological model and generate high-priority targets that will guide our exploration efforts. The combination of 3D geological modelling, expanded core sampling, and re-interpreted geophysics gives us confidence in the potential for a significant discovery at Red Mountain.'
The advancement in the Red Mountain Gold Project is likely to have a positive impact on Zenith Minerals' stock. The updated 3D geological model and the identification of new high-potential targets enhance the project's prospectivity, which could attract investor interest. The company's broader strategy to transition into a multi-asset gold producer further strengthens its market position.
Investor Reaction:
Analysts are likely to react positively to this announcement, given the significant progress in the Red Mountain Gold Project. The updated geological model and expanded sampling efforts indicate a well-planned exploration strategy, which is crucial for potential discoveries. However, the actual impact on the stock will depend on the results of the upcoming drilling campaign.
Conclusion:
Investors should keep an eye on the upcoming drilling results at the Red Mountain Gold Project, as they will provide further insights into the project's potential. Zenith Minerals' strategic efforts to advance its gold projects and transition into a multi-asset gold producer are promising and could offer significant value to shareholders.