Zuleika Gold Sets 2025 Drilling Plans Amid Strategic Project Withdrawals

Strategic Focus on Zuleika Project Drilling

Zuleika Gold Limited (ASX: ZAG) has announced a clear strategic pivot in its exploration activities following a comprehensive review of its project portfolio during the December 2024 quarter. The company is preparing to commence drilling at its flagship Zuleika Project, located in the prolific gold-rich Kundana-Ora Banda district of the Kalgoorlie Goldfield, in the first half of 2025. This move follows extensive soil geochemistry programs conducted over 2022 and 2023, which identified highly prospective anomalies warranting drill testing.

The Zuleika Project covers 220 square kilometres of highly prospective ground, historically underexplored due to transported cover. The project sits along major regional structures within gold-rich stratigraphy that has produced over 20 million ounces of gold in the past three decades, underscoring its potential for significant discoveries.

Portfolio Rationalisation and Project Withdrawals

In a bid to sharpen its focus and allocate resources efficiently, Zuleika Gold has withdrawn from several projects and non-core areas. These include the Menzies and Goongarrie Projects, as well as the Little T, Star Well, and Castle East prospects within the broader Zuleika Project. This rationalisation reflects a disciplined approach to exploration, concentrating efforts on the most promising targets identified through recent geochemical surveys and geological assessments.

Meanwhile, the Credo Project remains under active evaluation. Although no field activities were conducted during the quarter, ongoing discussions with mining contractors and feasibility studies aim to explore options for exploiting the high-grade resource at Credo Well. The project hosts a JORC-compliant Inferred Mineral Resource of 87,000 tonnes at 4.41 grams per tonne gold, equating to approximately 12,300 ounces of contained gold, with potential for resource expansion.

Legal Proceedings Against Vango Mining

Zuleika Gold continues to pursue legal action against Vango Mining Limited and its subsidiary Dampier (Plutonic) Pty Ltd (DPPL) following breaches of a Binding Term Sheet (BTS) related to the K2 Project. The Court of Appeal dismissed Vango and DPPL's appeal in May 2024, affirming Zuleika Gold's entitlement to a 4.1% beneficial interest in the mining lease and adjacent tenements. The company is now vigorously advancing the next stage of litigation to quantify damages payable by Vango and DPPL.

Notably, Vango was acquired by Catalyst Metals Ltd in 2023, which consolidated the mineral field by acquiring the Plutonic Mining operation. Legal counsel has confirmed that this takeover does not affect Zuleika Gold's claims. The company is actively seeking discovery to support its damages claim, expected to progress in the first half of 2025, alongside ongoing discussions with Catalyst aimed at resolving the dispute.

Financial Position and Outlook

As of the end of December 2024, Zuleika Gold held cash reserves of approximately $1.82 million, supported by an unused $700,000 loan facility. The company reported total exploration and evaluation expenditure of $170,000 during the quarter, with overall operating cash outflows of $153,000. With total available funding of $2.52 million, Zuleika Gold estimates it has nearly eight quarters of financial runway at current expenditure levels.

The company’s disciplined capital management and focused exploration strategy position it well to advance its drilling program and legal claims, both critical to unlocking shareholder value. The upcoming drilling campaign at Zuleika Project will be a key catalyst, potentially validating the promising geochemical anomalies and advancing the company toward resource definition.