Zeus Resources Secures 100% Stake in High-Grade Diaguili Copper-Gold Project in Mauritania Amid Surging Copper Prices

Acquisition Structure and Funding Strategy for Diaguili Project

Zeus Resources has arranged the Diaguili copper-gold project acquisition as a staged transaction to optimize capital deployment over 24 months. The US$2.0 million total consideration comprises US$1.0 million in cash and US$1.0 million in Zeus shares, disbursed in four tranches at separate completions. This phased approach aligns capital expenditure with exploration progress while preserving financial flexibility.

To finance the acquisition and the upcoming exploration programme, Zeus has secured firm commitments for a two-tranche placement priced at A$0.006 per share, aiming to raise A$2,000,000 before costs. Managed by GBA Capital Pty Ltd, the placement highlights strong investor confidence. Notably, Zeus directors have committed A$90,000, reflecting management’s alignment with shareholder interests.

Strategic Location and Accessibility of the Guidimaka Region Project

The Diaguili copper-gold project is positioned in the Guidimaka region of southern Mauritania, roughly 750 kilometres southeast of Nouakchott and about 36 kilometres from Selibaby, the regional centre. Located near the Senegal River bordering Senegal, the project lies within a recognized mineral exploration corridor, approximately 6.5 kilometres northeast of Diaguili village.

Access is convenient during the dry season via approximately 640 kilometres of sealed road from Nouakchott to Selibaby, followed by 50 kilometres of maintained unsealed road and 10 kilometres of minor tracks. Vehicle access is available across most of the permit during dry conditions. However, the wet season from late June to mid-October restricts fieldwork and drilling, influencing exploration scheduling.

Historical Drilling and Copper-Gold Mineralisation at Diaguili

The project has a documented exploration history dating back to the late 1960s, with 49 drill holes by BRGM in the 1970s. These historical programs identified significant copper mineralisation, previously reported to the ASX by Gryphon Minerals Limited in December 2014. Key intercepts include 22.25 metres @ 2.10% copper from 48 metres (including 11.25 metres @ 3.36% copper) in hole F12, 12.7 metres @ 2.94% copper from 60 metres (including 7.9 metres @ 4.40% copper) in hole SDG-2, and 35 metres @ 1.44% copper from 1 metre (including 20 metres @ 2.10% copper) in hole F19.

Mineralisation outcrops along two low hills, Colline Nord and Colline Sud, each 300 to 400 metres long and up to 20 metres high. Most historical holes ended within 100 metres of surface, leaving mineralisation open at depth and along strike. A discrete airborne VTEM conductor identified by Shield Mining Limited in 2008 persists beneath the drilled area, strongest below 100 metres, indicating untested potential. Additional intercepts include 33 metres @ 1.43% copper from surface (including 21 metres @ 2.02% copper) in hole F07 and 6 metres @ 2.83% copper with 1.4 g/t gold from 106.7 metres in hole SDG-7.

Caution on Historical Data and Verification Needs

Zeus Resources has issued a cautionary note regarding the historical exploration results cited. These results were generated by previous explorers and reported by Gryphon Minerals Limited on 12 December 2014. They were not reported under the JORC Code 2012 standards and may not fully comply with its requirements.

Original drill chips, core samples, and assay certificates are unavailable, precluding independent verification by a Competent Person per JORC Code 2012. Further evaluation and exploration may reduce confidence in these results. However, Zeus has found no reason to doubt their accuracy but has not independently validated or endorsed them. No Mineral Resource, Ore Reserve, or Exploration Target has been defined. Confirmatory drilling of historically mineralised zones is planned.

Geological Context Within the Mauritanides Orogenic Belt

The Diaguili project lies in the Mauritanides, a Pan-African to Hercynian orogenic belt along the western margin of the West African Craton. This belt hosts multiple copper-gold occurrences and the operating Guelb Moghrein mine, managed by First Quantum Minerals Limited. The Mauritanides consist of east-vergent thrust sheets with ophiolitic, ultramafic, and volcano-sedimentary rocks, known for iron oxide-copper-gold (IOCG) style mineralisation, the primary target at Diaguili.

The project covers an extensive 1-kilometre strike with copper intersections at both ends, remaining open for further exploration. The surrounding plain is covered by alluvial and aeolian deposits, limiting historical surface geochemistry and leaving large areas untested. This setting suggests strong potential for new discoveries within and beyond historical drilling zones, especially given the persistent VTEM conductor at depth.

VTEM Geophysical Target and Data Reprocessing

A discrete airborne VTEM conductor identified by Shield Mining Limited in 2008 remains evident beneath the historic drill area and represents a key exploration target. The conductor is strongest below 100 metres, an area largely untested by previous drilling.

Zeus has commissioned reprocessing of the 2008 raw VTEM data to develop a 3D conductivity model ahead of planned drilling. This updated geophysical interpretation aims to refine drill targeting and identify the most prospective zones for follow-up exploration, providing a modern framework for the project’s exploration strategy.

Permitting Status and Upcoming Exploration Plans

The Diaguili project is fully permitted for drilling, enabling Zeus to advance directly to exploration without regulatory delays. This de-risking factor supports efficient progression from geophysical targeting to confirmatory drilling of historically mineralised zones as part of the proposed work programme.

Exploration timing will consider the wet season from late June to mid-October, when fieldwork and drilling are impractical. Drilling campaigns will be scheduled during the dry season to leverage straightforward vehicle access. The work programme includes confirmatory drilling to validate historical results and test untested geophysical targets identified through VTEM reprocessing.

Market Environment and Copper Price Impact on Acquisition

The Diaguili project acquisition occurs amid record-high copper prices, enhancing the economic appeal of copper exploration and development worldwide. The company update highlights the project as a "Drill Ready, De-risked Copper Project in Elephant Country Amid Record Copper Prices," underscoring the favourable timing for copper assets.

Located in the Mauritanides belt alongside the operating Guelb Moghrein mine, the project benefits from proven geological potential for economic copper-gold deposits. The combination of a drill-ready status, strong historical mineralisation, untested geophysical targets, and robust commodity prices creates a compelling investment case for Zeus shareholders and investors.

Financial Overview and Exploration Funding

The US$2.0 million acquisition cost represents a modest capital outlay for a fully permitted copper-gold project with significant historical drilling results. The staged payment structure—US$1.0 million cash and US$1.0 million in shares over 24 months—allows Zeus to manage cash flow while preserving flexibility for exploration.

The A$2,000,000 placement to fund acquisition and exploration demonstrates the company’s commitment to advancing the project. Director participation of A$90,000 signals internal confidence. Funds will support confirmatory drilling, 3D VTEM modelling, and further exploration to validate historical data and test untested geophysical targets within the permit.