Zenith Minerals intersects further high-grade gold incl 12m at 8.9 g/t at Red Mountain

by

Zenith Minerals Limited (ASX: ZNC) announced that high-grade results were received from the further two RC drill holes at the company’s 100% owned Red Mountain gold project in Queensland.

The company said that the current drill program was designed to follow-up on results from Zenith’s maiden drill program that returned high-grade near surface gold results.

Significant results from the two RC holes include 12m @ 8.9 g/t Au from 68m depth, including 4m @ 25.9 g/t Au.

Zenith said that the new 1m resample results confirmed and upgraded previous high-grade gold intersection, returning 10m @ 2.7 g/t Au from surface, including 4m @ 4.9 g/t Au.

ZNC reported that step-out RC drilling is continuing at the Red Mountain Gold Project, with a further 14 holes completed (total 31 RC holes).

The company announced that high-grade gold mineralisation is now outlined over 250m of strike and remains open at depth and along strike to the north and south.

ZNC reported that assay results are pending for a further 12 recently completed RC drill holes. The company said that it is currently assessing options to accelerate activities at Red Mountain including mobilising a diamond drill rig to site.

Red Mountain project

The Red Mountain Gold Project is located in Queensland, within ~100km of operating gold mines at Cracow and Mount Rawdon.

The gold mineralisation at Red Mountain is considered by Zenith to be analogous to known large scale commercial gold deposits in Queensland.  Evidence includes a zoned system with geochemistry like that documented at third party owned Queensland gold mines such as Mt Wright and the nearby Mount Rawdon Gold Mine.

Drilling at Red Mountain

The maiden drill program at Red Mountain in June 2020 had intersected high-grade near surface gold and silver including 13m @ 8.0 g/t Au & 3.2 g/t Ag from surface, incl. 6m @ 16.7 g/t Au & 5.3g/t Ag; and 5m @ 3.5 g/t Au & 54.3 g/t Ag from 64m, incl. 2m @ 8.0 g/t Au & 109.4 g/t Ag.

Follow-up RC drilling at Red Mountain

The company had recently commenced an RC drill program designed to follow-up on results from Zenith’s maiden drill program that had returned high-grade near surface gold results.

Zenith said that the current drill program included holes drilled east to west on 50m spaced sections, stepping out north and south of the zone of known mineralisation to provide approximately 500m of strike coverage. This area is part of a larger total target zone extending some 2.2 km around the rim of the breccia pipe. This 2.2 km anomaly shows similarities to the neighbouring 1.2moz Mt Wright and 2.5moz Mt Rawdon gold deposits.

Results from further 2 RC holes

ZNC said that new results from a further 2 RC drill holes have now been received outlining a high-grade gold zone on the western flank of the Red Mountain breccia pipe.

The company said that drilling has continued to test along strike of the high-grade gold zone with a further 12 drill holes completed in this area, with most holes along trend intersecting similar rock types and alteration to that hosting the gold mineralisation.

Zenith said that another two drill holes of a planned initial 6 holes were also completed on the north eastern side of the breccia pipe to test a coincident geochemical – geophysical target similar to that associated with the high-grade western gold zone. ZNC said that rocks and alteration intersected in the north eastern zone so far are like those associated with gold mineralisation on the western flank.

High-grade results

Zenith announced that high-grade results were received for the initial samples from the holes ZRMRC018 and ZRMRC019. Significant hits included 12m @ 8.9 g/t Au from 68m depth, including 4m @ 25.9 g/t Au.

With the latest RC drill results, Zenith Minerals has now hit high-grade gold over 250m of strike at Red Mountain.

The company announced that high-grade gold mineralisation remains open at depth and along strike to the north and south where recently completed RC drill holes have been logged as intersecting similar rock types and alteration to that hosting gold mineralisation.

1 m resample results

The company said that new 1m resample results for holes ZRMRC011, ZRMRC012, ZRMRC016, and ZRMRC017 confirmed and upgraded previous high-grade gold intersection, returning 10m @ 2.7 g/t Au from surface, including 4m @ 4.9 g/t Au.

The company said that mineralised composite samples will now be resubmitted at 1m intervals for analysis of gold and silver.

Updates and next steps

The company reported that assay results are pending for a further 12 recently completed RC drill holes. ZNC said that follow-up drill planning is in progress. Zenith Minerals said that it is currently assessing options to accelerate activities at Red Mountain including mobilising a diamond drill rig to site.

Management comments

CEO Mick Clifford said: “These new assay results from hole 19 at Red Mountain are very pleasing, highlighting the high-grade nature of the gold mineralisation in fresh rock. The Red Mountain project is continuing to deliver encouraging results and the Company is now assessing options to accelerate activities on site to unlock the projects potential.

The Company is currently drilling at two of its gold projects, Red Mountain in Queensland and Split Rocks in Western Australia and has already announced plans to drill an additional two high-quality targets – the Snook copper prospect, part of the Develin Creek project in Queensland and Jackadgery gold in New South Wales. These four projects form the core of the Company’s exciting gold & copper project portfolio.”