Funding Boost and Resource Growth Position Zenith Minerals for Exploration Risks Ahead

Resource Growth at Dulcie Far North

Zenith Minerals Limited (ASX: ZNC) delivered a robust quarterly update for the period ending 31 December 2024, highlighted by a substantial 40% increase in the JORC Inferred Mineral Resource at its flagship Dulcie Far North (DFN) gold project. The updated resource now stands at 5.14 million tonnes at 1.30 g/t gold, equating to approximately 210,000 ounces. This milestone underscores the project's growing significance within Zenith's portfolio and reflects the success of a 17-hole Reverse Circulation drilling campaign completed during the quarter.

Located in Western Australia's Southern Cross-Forrestania Greenstone Belt, DFN benefits from excellent infrastructure, including proximity to underutilised gold processing facilities just 35 km away. Zenith’s ongoing commitment to resource expansion at DFN, including planned infill and extensional drilling, aims to further increase resource confidence and size, setting the stage for potential development options.

Red Mountain Drilling Highlights Large-Scale Potential

In Queensland, Zenith’s 100%-owned Red Mountain project continued to impress with drilling and geological reviews reinforcing the potential for a large-scale intrusion-related gold system. Recent shallow drilling returned wide gold intercepts near surface, while geochemical anomalies, including a molybdenum surface anomaly, suggest proximity to a hotter, more prospective core. These findings have prompted plans for a deep diamond drilling program to test the breccia pipe’s core in 2025.

Zenith has engaged RSC Consulting to refine geological models and exploration planning, aiming to unlock the full potential of Red Mountain. The project’s strategic location within the Auburn Arc and its strong infrastructure access further enhance its appeal as a cornerstone asset.

Financial Strength and Strategic Capital Raising

Zenith bolstered its financial position by raising A$2.48 million through a well-supported placement and an oversubscribed Share Purchase Plan. This capital injection has strengthened the company’s cash reserves to approximately A$4.0 million, enabling accelerated exploration activities across its key projects. The company also holds strategic equity investments valued at around A$1.59 million, providing additional financial flexibility.

The capital raising was supported by sophisticated investors and directors, reflecting confidence in Zenith’s growth strategy. The company’s financial discipline was evident in its quarterly cash flow report, which showed controlled exploration expenditure and a clear path to sustaining operations.

Progress at Earaheedy Zinc Joint Venture

Beyond gold, Zenith’s 25% interest in the Earaheedy Zinc Joint Venture (JV) saw encouraging metallurgical testwork results. The tests confirmed the feasibility of producing a high-grade bulk concentrate with 79% zinc recovery and significant energy savings through coarse grinding and HydroFloat™ technology. These advances support a simplified, cost-efficient processing strategy, enhancing the project’s economic prospects.

With an expanding inferred resource base of 94 million tonnes grading 3.1% Zn+Pb and 4.1 g/t Ag, the Earaheedy JV is progressing towards a Bankable Feasibility Study. Zenith’s free-carried interest through to BFS reduces near-term capital risk while maintaining exposure to this world-class base metal discovery.

Lithium Projects Align with Battery Minerals Demand

Zenith’s lithium assets, including the Split Rocks and Waratah Well projects in Western Australia, complement its gold and base metal portfolio. The Split Rocks project hosts a maiden inferred resource of 11.9 million tonnes at 0.72% Li2O, with over 80 advanced lithium targets identified. Recent fieldwork uncovered previously unrecognised pegmatites, expanding the project’s exploration upside.

Waratah Well, supported by a Western Australian Government Exploration Incentive Scheme grant, continues to demonstrate high-grade lithium mineralisation, including significant petalite content. These projects position Zenith to benefit from the growing demand for battery minerals, balancing near-term gold opportunities with long-term lithium growth.

Corporate Strengthening and Governance

In a strategic move to enhance governance and capital markets expertise, Zenith appointed Euan Jenkins as a Non-Executive Director during the quarter. Jenkins brings over 25 years of experience in global banking, equity capital markets, and M&A advisory, which is expected to support Zenith’s exploration and corporate development ambitions.

The company also reported successful outcomes at its Annual General Meeting, with all resolutions passed, reflecting shareholder support for its strategic direction.

Outlook

Zenith Minerals is well-positioned to advance its multi-commodity portfolio with a clear focus on resource growth and value creation. The combination of strong drilling results, robust financial backing, and strategic leadership enhancements sets the stage for an active 2025 exploration program. Investors will be watching closely as Zenith progresses deep drilling at Red Mountain, expands resources at Dulcie Far North, and advances its zinc and lithium projects.