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Highlights
- Zenith Minerals (ZNC) secures a significant grant for advanced drilling at Red Mountain.
- Independent evaluations bolster confidence in the project's deep-seated gold and copper potential.
- Deep drilling set to commence in Q2 2025, aiming to explore beneath known mineral layers.
Zenith Minerals (ASX:ZNC) recently announced a major boost for its Red Mountain Gold Project with the acquisition of a A$275,000 grant from the Queensland Government's Collaborative Exploration Initiative (CEI) Round 9. This financial injection is earmarked for extensive deep diamond drilling activities, targeting the unexplored depths of the project which are believed to house primary gold along with associated copper and molybdenum mineralisation.
The Red Mountain Gold Project, fully owned by Zenith Minerals, has shown promising signs of a large-scale intrusion-related gold system. This project has undergone recent technical evaluations by RSC, a well-regarded geological consultancy, which confirmed the presence of characteristics typical to vertically zoned intrusion-related gold systems. These findings suggest there is significant potential for substantial mineralisation at greater depths than previously drilled.
RSC's assessment drew parallels between the geological features at Red Mountain and those observed in other known gold systems in Queensland, such as Mt Wright and Mt Rawdon. The most compelling evidence points to a porphyry-style system, where gold is primarily located within rhyolite units underpinned by deep-seated intrusions that drive mineralisation.
With the financial support from the CEI grant, Zenith Minerals plans to initiate a rigorous drilling program in the second quarter of 2025. This campaign aims to reach depths of over 400 meters, targeting the inferred core of intrusive activity beneath the existing breccia system. The upcoming drilling efforts will integrate data from previous assays to refine and enhance targeting accuracy, potentially uncovering new layers of mineral wealth.
Andrew Smith, Managing Director of Zenith Minerals, expressed his gratitude for the state support, emphasizing that the grant will significantly bolster the company's capacity to explore deeper geological layers at Red Mountain. He highlighted the strategic importance of the CEI funding, which complements additional funds raised through asset sales, such as the recent A$0.83 million from the sale of the Kavaklitepe asset in Turkey. These combined resources, totaling over $1.1 million, will facilitate the next exploration phase without the need for equity dilution, positioning Zenith Minerals to potentially unlock a significant porphyry-style mineralising event at Red Mountain.
This strategic grant not only underscores the government's confidence in the project's potential but also propels Zenith Minerals closer to unlocking the vast mineral resources believed to lie deep within the Red Mountain area.
