Zenith Minerals scores $275,000 for gold exploration at Queensland’s Red Mountain

• State funding for deeper drilling at Red Mountain gold project
• CEI grant of $275,000 shows significance of project
• Emerging as critical minerals target

Special Report: Zenith Minerals has secured a $275,000 (inclusive GST) Queensland Government grant under Round 9 of the Collaborative Exploration Initiative (CEI) to support deep diamond drilling at the Red Mountain gold project.

The project presents significant gold and silver mineralisation hosted within a large breccia pipe system and shares similarities to other major Australian gold deposits such as Mt Wright, Mt Leyshon and Mt Rawdon.

These systems, characterised by breccia complexes and intrusion-related mineralisation, have produced substantial gold resources, highlighting Red Mountain’s potential to host a large-scale intrusion-related gold system (IRGS), or porphyry-style copper (molybdenum) mineralisation.

The CEI is a state program designed to encourage discovery of critical minerals in Queensland and the company’s successful application underscores the strategic significance of Red Mountain as an emerging precious and critical minerals target.

Zenith Minerals’ (ASX:ZNC) planned drilling is aimed at unlocking the project’s primary gold potential, with associated copper and molybdenum mineralisation at depth.

The company will test a potential large-scale IRGS beneath current drilling with an independent technical assessment by geological consultancy RSC confirming the project exhibits the hallmarks of a vertically zoned IRGS/porphyry system with depth potential.

Deep drilling campaign the plan

Drilling is planned for the current quarter following the wet season, building on previous intercepts of gold and copper mineralisation.

“This funding will directly support our deep drilling campaign at Red Mountain, targeting what we believe could be a significant gold system with copper and molybdenum as part of a potential broader porphyry-style, intrusion-related mineralising event,” ZNC managing director Andrew Smith said.

“The recent independent review by RSC confirmed Red Mountain displays all the key hallmarks of a vertically zoned IRGS, with substantial potential at depth.

“With this co-funding in place, together with the pending proceeds from the sale of the Kavaklitepe asset in Turkey for A$0.83m, Zenith will have sourced over $1.1m with no equity dilution, rendering us well-positioned to advance our next phase of exploration and unlock the project’s broader critical minerals opportunity.”

The company is also wrapping up drilling at its Western Australian Dulcie Far North gold project, with recent intercepts extending mineralisation along strike and at depth, supporting a planned resource upgrade in the second half of 2025

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.