Zenith’s strong Red Mountain gold hit hints at potential for deeper riches

• Zenith’s first 2025 drill hole returned 139.7m at 1.05g/t gold with exceptional high-grade zones
• Today’s results only partially represent the drill hole and the positive grades have caused management to plan an additional hole
• Red Mountain project demonstrating strong similarities to Mount Wright deposit
• Deeper drilling now underway to test belief that higher-grade gold is present at depth

Special Report: Zenith Minerals is increasingly confident that its Red Mountain project in Queensland is an analogue of the renowned Mount Wright deposit after drilling returned a thick gold intercept with higher grade intervals.

Assaying of the first hole (ZRMDD064) in its 2025 drill program returned a thick 139.7m intersection grading 1.05g/t gold from a down-hole depth of 214.9m.

This includes high-grade intervals of 14.2m at 4.62g/t from 276m including 2m at 21.03g/t and 9.45m at 5.29g/t from 339.55m including 2.1m at 21.15g/t.

To top it off, there might be more results from this hole as only a high priority section (179-355m) has been assayed to date with results fast-tracked to the laboratory.

Zenith Minerals (ASX:ZNC) notes that Red Mountain is emerging as a classic intrusion-related gold system comparable to Mount Wright where lead-zinc-silver mineralisation occurs near the top of the system and is historically known to transition into significant higher-grade gold zones at depth.

This is highlighted by hole ZRMDD064 intersecting zinc-lead mineralisation across the gold zone, supporting the interpretation that drilling to date is still only testing the upper part of the system – with higher gold grades anticipated as drilling tests deeper.

“These are the results we had hoped for – the core looked exceptional, and the assays have confirmed it,” ZNC managing director Andrew Smith said.

“The follow-up hole now underway is designed to test deeper into the system, where we anticipate even stronger gold grades.

“With a strengthening gold price, drilling momentum at Red Mountain, and a 12,000m programme about to commence at our flagship Consolidated Dulcie Project, it is an incredibly exciting period for Zenith.”

Drill result

The first hole in the 2025 drill program was designed to test the down-dip extension of an intercept of 129m at 0.51g/t gold from 225m in hole ZMRDD0523 in the rhyolite intrusion on the western margin of the ring complex that defines the Red Mountain project.

Results from ZRMDD064 show broader, higher grades and encouragingly include a zone of semi-massive sulphide vein mineralisation near the basal contact of a rhyolite intrusion which returned the intercept of 2.1m at 21.1g/t gold.

While this might not be indicative of economic zinc-lead mineralisation, it is encouraging when considering the position of ZRMDD064 in the context of the Mt Wright mineralisation system.

ZNC adds the structural information is potentially significant as the structure occurs at a low angle to core, suggesting the interval does not represent true width.

Nearby measurable structures indicate a sub-vertical geometry, which may represent the orientation of a feeder structure at depth.

The company also noted the location of the rhyolite and mineralisation was higher in the hole than originally anticipated and indicates either structural dislocation via faulting or drilling at an oblique angle to the geology.

As such, the follow-up hole has been designed to clarify the orientation of the host intrusion and its mineralisation.

Watch: Zenith gets go-ahead for Forrestania Greenstone gold drilling

Other activities

ZNC has completed drilling at the eastern Collaborative Exploration Initiative-funded copper porphyry target to a depth of 465.3m with assays expected in the coming weeks.

Due to the strong results, the rig has returned to the western IRG target and is now drilling a third deep diamond hole to further test the Red Mountain gold system below ZRMDD064.

The company is also preparing to start a major 9000-12,000m reverse circulation drill program at its recently consolidated Dulcie gold project in WA by the end of this month.

This is fully funded following the completion of a ~$3.5m rights issue to support growth of the existing resource of 8.2Mt at 1.15g/t (302,000oz contained gold) and test new high-priority targets.

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.