Validation of Zenith Mineral’s Red Mountain deposit in Central Queensland is progressing.
So is its share price, which showed a 16 per cent increase yesterday to close at 0.14AUD.
Zenith has been conducting step-out drilling in an effort to assess the potential for its gold resource located near Aeris Resource’s Cracow Mine.
Diamond core drilling results from the most recent two holes at the Red Mountain gold project in Queensland have extended the high-grade gold zone to 180 vertical metres.
Gold mineralisation still remains open at depth and will be the focus of further step-out drilling planned to recommence in February 2021.
The newly intersected gold mineralisation is associated with base metal stringer veins with five separate occurrences of visible gold now confirmed in one drill hole.
Assay results from the two recent holes included 0.5m grading at 34.2 g/t gold and 1.0m at 10.4 g/t gold (visible gold confirmed).
“The confirmation of extensive visible gold and strong gold grades in what we believe to be the upper levels of a breccia pipe system will now lead us to push the drilling program to explore much deeper – that is below the 180 vertical metre level,” executive charman Peter Bird said.
“We are potentially still only exposing the upper portion of a breccia pipe system if other similar well-documented systems such as Mt Wright are a proxy.”
A phased drilling program would continue at the Red Mountain project this calendar year, Mr Bird said.
“Our key objective with this project is to define something of significant value,” he said.
“The upcoming 2021 year is going to be very exciting for us with follow up work including drilling planned for at least three of our key flagship opportunities.”
These were the Red Mountain asset for high grade gold, the Split Rocks asset in Western Australia for large-volume low-grade gold mineralisation and the Devlin Creek asset in Queensland for base metals, principally copper.