It’s all upside for Zenith as Rumble fast-tracks Earaheedy discovery
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An accelerated exploration program will “test the scale and extent” of Rumble Resources’ and Zenith Minerals’ major Earaheedy zinc-lead discovery.
Zenith (ASX:ZNC) owns a ‘free carried’ 25% interest in the significant Earaheedy zinc-lead discovery, where drilling recently returned a highlight 34m at 4.22% zinc and lead from 66m, including a higher grade 14m ‘core’ grading 7.05% zinc and lead.
‘Free carried’ means Zenith doesn’t pay anything on this project until the completion of a bankable feasibility study, often the final step before project financing and construction.
Project partner Rumble Resources (ASX:RTR) – which holds 75% of the project – will now use funds from a $40m capital raising to sole fund an accelerated exploration program.
“The results [so far] have highlighted the potential for a very large-scale zinc-lead system, as the Chinook prospect drilling has only tested 2km of the 45km of prospective mineralised strike — underlining the potential to delineate multiple large tonnage, shallow (open pit) deposits throughout the Earaheedy project,” Rumble says.
Earaheedy represents complete upside and zero risk for Zenith, which is now up 146% since the discovery was announced on April 19.
“We welcome the news that RTR are going to fast-track the Earaheedy zinc discovery with an extensive accelerated exploration program underpinned by their A$40m capital raise,” chairman Peter Bird says.
“We look forward to working with the Rumble team in unlocking the value of this exciting discovery for the benefit of the shareholders of both groups.”
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.