Zenith fills in blanks on 600m WA gold corridor

Zenith Minerals has wrapped up the latest drill campaign at its Consolidated Dulcie gold project in Western Australia, with the final batch of assays confirming widespread gold mineralisation in a key area outside the existing inventory.

The drilling at Dulcie Central was designed to test a 600-metre gap between the company’s existing Dulcie North and Dulcie deposits. This central corridor is not included in Zenith’s current inferred mineral resource for the Consolidated Dulcie project of 21.3 million tonnes (Mt) at 1.0g/t for 675,000 ounces of gold.

The company has received the last 10 results from the 34-hole, 4601-metre reverse circulation (RC) program, with 20 of the 24 holes drilled into Dulcie Central intersecting gold mineralisation. Highlights include a five-metre hit grading 1.59 grams per tonne (g/t) gold from 41m, which held a higher-grade three-metre slice going 2.26g/t gold.

Other notable results included seven metres assaying 0.82g/t gold from 83m, featuring a three-metre section running 1.39g/t gold and a seven-metre intercept grading 0.80g/t gold from just 29m downhole.

‘Our focus now turns to assessing the potential for a maiden mineral resource at Dulcie Central.’

Zenith Minerals managing director Andrew Smith

With the latest results in hand, Zenith says the drilling has provided further evidence of widespread gold mineralisation across Dulcie Central. The company will now get to work assessing whether the results are strong enough to support a maiden mineral resource estimate at the prospect.

While Zenith’s current program is focused on growing the resource, historical hits at the broader project have delivered some stunners, including 32m grading a hefty 9.4g/t gold and 3m at an eye-watering 70g/t gold, highlighting the system’s high-grade pedigree.

The project sits within the revered Southern Cross–Forrestania gold belt and benefits from granted mining leases and proximity to regional processing infrastructure at Marvel Loch and Edna May, placing it in prime real estate.

Zenith Minerals managing director Andrew Smith said: “These results complete our first drilling programme at Dulcie Central, where 20 of 24 holes intersected gold in an area not included in our existing 675,000 oz Mineral Resource.”

The company is now preparing applications for a substantial 850-hole infill RC drilling program. The plan is to tighten drill spacing from a nominal 80m to a much closer 40m by 40m pattern targeting the mineralised strike extent of the Dulcie Far North, Dulcie North, Dulcie Central, Scott’s Grey and Dulcie prospects.

Infill drilling is a classic de-risking step designed to improve geological confidence and provide a basis for potentially upgrading resources from the lower-confidence inferred category to the indicated category. The campaign remains subject to final drill program design, regulatory and heritage approvals, contractor availability, funding and operational planning.

Additionally, Zenith is planning supplementary diamond drilling at the Consolidated Dulcie to get a better handle on the geology and structural controls of the mineralisation, while collecting valuable core samples for metallurgical testing and future development studies.

The drilling success comes against the backdrop of Forrestania Resources’ one-for-4.3-cents scrip bid for Zenith, which has been declared unconditional after Forrestania secured a controlling 61.42 per cent stake. Forrestania is looking to fold Zenith’s gold assets into its broader WA hub-and-spoke strategy, centred on its Edna May and Lake Johnston operations, potentially providing a development pathway for the growing Dulcie gold inventory.

While Dulcie is its flagship, the company has several other cards in its hand. Zenith also holds the Red Mountain gold project in Queensland, a 25 per cent free-carried interest in the major Earaheedy zinc project in WA, an indirect 26 per cent stake in the Cowarra gold project in NSW and a foothold on the Split Rocks lithium project, home to a 11.9-million-tonne inferred resource grading 0.72 per cent lithium oxide.

Zenith appears to be methodically piecing together a much larger prize at Dulcie. Proving up ounces in the gap between its existing deposits is a logical step, but with a history of high-grade hits and a massive infill program on the drawing board, the company isn’t just connecting the dots; it’s building a case to potentially push the project well beyond its current 675,000-ounce gold inventory.

Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au