Zenith Minerals and Rumble Resources believe they are sitting on tier one potential at the Earaheedy zinc-lead-silver project in WA on the back of exciting assays.
JV partners Zenith (ASX:ZNC, JV:25%) and Rumble (ASX:RTR, JV:75%) have made waves in recent times at Earaheedy, where the discovery of a project with major potential has piqued investor interest and prompted an accelerated exploration program.
The latest drill results from that campaign include the following highlights:
- 23m at 4.1% zinc and lead from 103m at a 0.5% zinc and lead cut-off, including 17m at 5.21% zinc and lead and 6.2 grams per tonne silver from 103m at a 2% zinc and lead cut-off in EHRC061;
- 18m at 3.05% zinc and lead from 56m at a 0.5% cut-off, including 9m at 5.3% zinc and lead and 6.6g/t silver from 64m at a 2% cut-off in EHRC059;
- 11m at 3.98% zinc and lead from 68m at a 0.5% cut-off, including 6m at 6.57% zinc and lead and 16g/t silver from from 69m at a 2% cut-off in EHRC055;
- 38m at 1.12% zinc and lead from 38m at a 0.5% cut-off, including 7m at 4.05% zinc and lead and 5.3g/t silver from 48m at a 2% cut-off in EHRC051, and;
- 52m at 1.65% zinc and lead from 50m to end of hole at a 0.5% cut-off, including 16m at 3.32% zinc and lead and 2.7g/t silver from 75m at a 2% cut-off.
At the Magazine prospect, drilling hit a further 20m at 1.58% zinc and lead from 140m to end of hole, including 10m at 2.52% zinc and lead and 2.5g/t silver from 143m.
The initial interpretation of mineralisation at Chinook is a mixed clastic/carbonate sediment-hosted zinc-lead deposit with mineralisation characteristics of sedimentary exhalative variant (SEDEX) style.
That’s important because six of the 10 largest active zinc mines in the world are SEDEX style deposits, accounting for 25% of global zinc-lead production and 50% of global reserves.
As the 75% owner of the project, exploration is funded by Rumble, which underwent a $40 million capital raising with a view to uncovering Earaheedy’s secrets.
That resulted in a 30,000m diamond and drilling campaign currently underway, designed to scope the discovery, which sits over a strike of greater than 12km and open in all directions.
Drilling will also test the potential of higher grade zinc-lead corridors associated with inferred extension faults.
Zenith, as a 25% owner of the project, is free carried through to a bankable feasibility study.
Chairman Peter Bird said the results were an exciting development for the company.
“We are very pleased with the results that Rumble have announced for the Earaheedy joint venture today,” he said.
“These results compliment and build on the early success achieved with the first phase drilling. This discovery remains unconstrained both along strike and down dip.
“The accelerated 30,000m diamond and RC percussion drill program that is fully funded by our JV partner is now underway has the ability to define more mineralisation on the joint venture property and hence add significant value to our existing business.”
The results to date have partially tested just 2km of 45km of prospective mineralised strike.
Rumble has set a conceptual exploration target at Earaheedy of between 40 and 100 million tonnes grading 3.5-4.5% zinc-lead to a depth of 80m and over 40km of prospective strike.
Busy times for Zenith
The free-carried work at Earaheedy is just one aspect of Zenith’s newsflow to come in 2021.
The company has also set it sights on defining gold resources at the Red Mountain and Split Rocks gold projects by end of 2021, as well as building the current copper resource at the Develin Creek copper-zinc project.
Drilling at Develin Creek kicked off last month.
This article was developed in collaboration with Zenith Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.