Zenith Minerals Accelerates Australian Gold Growth, Eyes Kavaklitepe Divestment

Strategic Exploration Advances at Dulcie Far North

Zenith Minerals Limited (ASX:ZNC) has delivered a strategically significant quarter, marked by substantial progress at its flagship Australian gold projects. At Dulcie Far North (DFN) in Western Australia, the company completed an extensive 40-hole Reverse Circulation (RC) drilling campaign aimed at expanding its existing JORC Inferred Mineral Resource of 210,000 ounces. Early assay results released post-quarter revealed encouraging gold intercepts, including 7m at 2.82 g/t Au and 5m at 1.28 g/t Au, indicating a wider and deeper mineralised system than previously understood. These findings validate Zenith’s geological model and underpin plans for further step-out and deeper drilling, with a resource upgrade anticipated in the second half of 2025.

DFN’s strategic location on a granted mining lease, just 35 km from underutilised processing facilities, offers potential for cost-effective commercialisation through toll treatment or standalone mining. Concurrently, regional exploration across the broader Split Rocks tenure is intensifying, targeting high-priority prospects such as Fuego and Nieve, where historical drilling was shallow and ineffective for deeper mineralisation. Zenith is also evaluating third-party acquisition opportunities to consolidate the district and enhance project scale.

Red Mountain: Unlocking a Tier-1 Intrusion-Related Gold System

In Queensland, Zenith’s Red Mountain project continues to demonstrate significant exploration upside. Drilling results confirmed multiple near-surface high-grade gold intercepts, including 23m at 1.49 g/t Au with a 2m interval grading 11.3 g/t Au. These results validate the use of Induced Polarisation (IP) geophysics as an effective targeting tool and reinforce the classification of Red Mountain as a vertically zoned Intrusion-Related Gold System (IRGS).

Independent geological assessment by RSC Consulting highlighted the potential for a deeper porphyry copper-molybdenum source beneath current drill depths, supported by geochemical pathfinder anomalies. Zenith secured a $275,000 grant from the Queensland Government’s Collaborative Exploration Initiative to support a planned deep diamond drilling program targeting the breccia system’s core. This emerging geological analogy to major Australian IRGS deposits underscores Red Mountain’s potential to become a company-making asset.

Portfolio Streamlining and Financial Position

Aligning with its strategic focus on Australian gold assets, Zenith signed a Non-Binding Heads of Agreement to divest its 20% interest in the Kavaklitepe Gold Project in Türkiye for approximately US$543,000 (A$830,000). This divestment will provide material funding and streamline the company’s portfolio towards domestic growth opportunities. Completion of definitive agreements and regulatory approvals is expected in the June quarter of 2025.

Zenith maintains a robust financial position with $2.7 million in cash and securities, excluding pending Kavaklitepe sale proceeds. This strong balance sheet supports ongoing resource growth, targeted exploration, and potential strategic acquisitions to build scale. The company also holds promising lithium projects at Split Rocks and Waratah Well, with government grants supporting drilling programs, and a 25% free-carried interest in the Earaheedy Zinc Joint Venture advancing through metallurgical testwork and scoping studies.

Leadership and Future Outlook

In a key management update, Zenith appointed Daniel Greene as Exploration Manager, bringing 18 years of diverse exploration experience and a proven track record in project generation and management. His expertise is expected to accelerate Zenith’s strategic exploration initiatives across its portfolio.

With significant drilling results validating its exploration models and a clear strategic focus on high-value Australian assets, Zenith Minerals is well-positioned to unlock substantial shareholder value. The company’s disciplined approach to portfolio management, combined with its strong financial footing, sets the stage for continued growth and potential transformative discoveries.