Zenith Minerals Kicks Off New Drilling Phase at Red Mountain Gold Project
ZNC (ZNC) Share Update November 2024 Sunday 10th
Zenith Minerals Launches New Drilling Campaign at Red Mountain
Zenith Minerals Limited has commenced a new Reverse Circulation (RC) drilling campaign at its Red Mountain Gold Project in Queensland, aiming to explore high-priority geological targets identified through advanced modelling and data reinterpretation.
Instant Summary:
- Initiation of RC drilling program at Red Mountain with Strike Drilling.
- Targeting high-priority zones identified through updated 3D geological modelling.
- Approximately 2,400 meters of drilling across 10-12 holes planned.
- Objective to refine understanding of mineralisation and expand on previous findings.
- Previous significant intercept of 118m @ 0.54 g/t Au from 225m.
Drilling Campaign Details
Zenith Minerals has launched a new phase of exploration at its Red Mountain Gold Project, located within Queensland's Auburn Arc. This area is renowned for its rich mineral deposits, making it a strategic asset in Zenith's gold portfolio. The current program involves approximately 2,400 meters of Reverse Circulation (RC) drilling, targeting high-priority zones identified through updated 3D geological models and reinterpreted geophysical data.
The campaign will consist of 10-12 holes, each with an average depth of 173 meters, and a maximum depth of 240 meters. Three RC holes have already been completed. The primary goal of this phase is to test shallow Induced Polarisation (IP) anomalies, refine the understanding of mineralisation, and build upon significant results from previous drilling campaigns.
Strategic Importance and Objectives
The Red Mountain Gold Project, discovered by Zenith in 2017, has shown significant potential through successive exploration phases. The project is 100% owned by Zenith and benefits from existing infrastructure and proximity to other notable gold projects in the region, offering logistical advantages and cost efficiencies.
Andrew Smith, Managing Director of Zenith Minerals, emphasised the importance of this drilling campaign as a pivotal step in advancing the Red Mountain asset. The updated geological insights and newly defined high-priority targets make this an exciting phase for Zenith, with plans for deeper diamond drilling in 2025.
Geological and Metallurgical Insights
The geological setting at Red Mountain shares similarities with other major Australian gold deposits, such as Mt Wright, Mt Leyshon, and Mt Rawdon. These systems are known for their breccia complexes and intrusion-related mineralisation, which have historically produced substantial gold resources.
Metallurgical tests indicate that much of the gold at Red Mountain is free-milling and non-refractory, with average recoveries of 83.3% via conventional cyanide leaching. Samples with lower arsenic content achieved recoveries as high as 95.8%, suggesting a straightforward processing path that could enhance the project's economic viability.
This new drilling campaign is likely to have a positive impact on Zenith Minerals' stock, as it demonstrates the company's commitment to advancing its high-potential assets. The strategic focus on high-priority targets and the potential for significant mineralisation could attract investor interest and confidence.
Investor Reaction:
Analysts are likely to view this development positively, given the strategic importance of the Red Mountain Project and its potential for significant mineralisation. The company's proactive approach in refining its geological models and targeting high-priority zones aligns well with investor expectations for growth and exploration success.
Conclusion:
Investors should keep an eye on the progress of Zenith Minerals' drilling campaign at Red Mountain. The results from this phase could provide valuable insights into the project's potential and influence future investment decisions. Zenith's commitment to aggressive exploration and rapid development underscores its focus on delivering long-term value.