In a strong start to the week, Zenith Minerals has found a new drill target at its Red Mountain gold project in Queensland after recently remodelling geophysical data.

Essentially, the data has shown a discrete strong magnetic core zone lies below the surface outcrop where rock chip results returned strongly anomalous assays including 0.3% copper, associated with visible copper minerals.

Plus, a strong induced polarisation (IP) chargeability anomaly encircles the breccia pipe and forms a 1200m long halo to the magnetic core – which confirms the potential for gold mineralisation to occur right around the circumference of the breccia pipe system.

Zenith (ASX:ZNC) is now planning to drill test the magnetic core zone as part of its ongoing Red Mountain gold drilling campaign which has already completed three holes in the western high-grade zone with a fourth hole in progress.

More than a discrete high-grade gold discovery 

“The ongoing technical work at Red Mountain has now defined two very meaningful drill targets,” Zenith chairman Peter Bird said the ongoing technical work at the project has defined two “very meaningful” drill targets.

“The first is totally new and is within the core of the breccia pipe and is interpreted to be a copper dominant target,” he said.

“The second is an extension to the western gold discovery and wraps around the margins of the breccia pipe for approximately 1200m, pushing down to over 300m depth. This is interpreted to be a gold dominated target.

“To date drilling for gold has only focussed on the western margin of the breccia pipe for a lateral distance of 300m.

“Whilst these are early-stage developments, it is very exciting as Red Mountain may be much more than just a discrete high-grade gold discovery.”

Extending gold mineralisation around the breccia pipe

Results from a recent detailed drone magnetic surveying accompanied by ground-based IP surveying using double-offset dipole-dipole configuration have now been integrated into a new 3D model for the Red Mountain gold project.

The work outlines a strong IP chargeability anomaly coincident with the surface outcrop of the breccia pipe margin, extending to depths more than 300m below surface.

The surface projection also correlates well with the surface gold-silver-arsenic soil geochemical anomaly (with IP chargeability >10 mv/V) which Zenith says most likely reflects disseminated pyrite and or clay alteration caused by hydrothermal fluids emanating from the breccia pipe.

The company is confident that the inference from the IP survey is there’s potential for gold mineralisation to occur right around the circumference of the breccia pipe system, which is 1200m in length and greater than 300m in vertical extent.

Drill core cutting and processing is in progress, with assay results pending.




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.