The exceptional results moved the project to the top of Zenith’s gold exploration pile. The company says the chance this intercept will be a red herring is less likely than a standalone gold project in Queensland’s gold heartland.
Zenith has a deeper follow-up hole underway, which it expects to find even stronger gold grades associated with copper.
Zenith Minerals managing director Andrew Smith said: “These are the results we had hoped for – the core looked exceptional and the assays have confirmed it. The follow-up hole now underway is designed to test deeper into the system, where we anticipate even stronger gold grades.”
The results land as the gold price soars past a record $5500 an ounce and the company insists there is plenty of drilling momentum to come.
Zenith’s third deep diamond hole is drilling below its ZRMDD064 target to chase higher-grade zones, while a 465.3m hole at the eastern copper porphyry target – supported by a Queensland Collaborative Exploration Initiative grant – awaits assays.
The discovery’s proximity to infrastructure and major Queensland gold deposits, such as Mt Leyshon and Mt Rawdon, enhances its development prospects.
Beyond Red Mountain, Zenith is gearing up for a 12,000m reverse circulation drilling program at its consolidated Dulcie gold project in Western Australia. The program, funded by a recent $3.5 million rights issue, aims to expand its 302,000-ounce resource and test a 0.3 to 0.8-million-ounce exploration target for near-term, near-surface gold production.
The market is abuzz with Zenith’s high-grade intercepts and scalable gold system. No doubt, imaginations have been triggered about just how big this discovery could be.
A renewed focus on Australian gold has turned trumps in Red Mountain’s latest hole. The cornerstone moment for the company, with a Mt Wright-style model in play, could be a sign of what’s to come. Red Mountain could redefine the company as a major gold player and standalone mine in a white-hot Queensland gold landscape.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
