Zuleika Gold Limited has progressed its exploration strategy with a comprehensive targeting review ahead of planned 2025 drilling, while also securing favorable court rulings in ongoing litigation related to the K2 Project.
- Targeting review underway for 2025 drilling at Zuleika Project
- No field activities conducted during March quarter
- Ongoing litigation against Vango and DPPL with court ruling favoring Zuleika
- Strong cash position of $1.525 million maintained
- Exploration expenditure of $125,000 reported for the quarter
Exploration Strategy and Project Focus
Zuleika Gold Limited continues to methodically advance its exploration efforts across its flagship Zuleika Project, situated in the prolific gold-rich Kundana-Ora Banda district of Western Australia's Kalgoorlie Goldfield. Despite the absence of field activities during the March 2025 quarter, the company has been engaged in a detailed targeting review of soil geochemical data collected over the past two years. This review aims to prioritise promising drill targets for the upcoming 2025 drilling campaign, with approvals either secured or pending.
The Zuleika Project benefits from its location along significant regional structures within highly prospective geology that has historically yielded over 20 million ounces of gold. However, transported cover has previously limited exploration effectiveness, making the current geochemical and geological approach critical to unlocking new discoveries.
Credo Project and Resource Potential
At the Credo Project, located north of Kalgoorlie near the Paddington operation, no fieldwork was conducted this quarter. The company remains focused on evaluating mining and processing options for the high-grade JORC-compliant inferred mineral resource of 87,000 tonnes at 4.41 grams per tonne gold, containing approximately 12,300 ounces. Recent drilling suggests potential resource expansion with multiple mineralised zones under assessment, alongside considerations for toll treatment at nearby processing facilities.
Legal Developments on K2 Project
Significant progress has been made in Zuleika Gold's legal proceedings concerning the K2 Project. The company is pursuing damages and costs from Vango Mining Limited and its subsidiary Dampier (Plutonic) Pty Ltd for breaches of a binding term sheet. A 2022 Supreme Court decision confirmed Zuleika’s 4.1% beneficial interest in the mining lease, a ruling upheld by the Court of Appeal in May 2024. With appeal proceedings concluded, Zuleika is advancing to the next litigation phase to quantify damages, with trial dates set for late October 2025.
Despite Vango’s acquisition by Catalyst Metals Ltd and subsequent consolidation of the mineral field, legal advice confirms that Zuleika’s claims remain unaffected. The company continues discussions with Catalyst in hopes of an amicable resolution but remains prepared to pursue litigation vigorously if necessary.
Financial Position and Corporate Activity
Financially, Zuleika Gold reported a cash balance of $1.525 million at quarter-end, supported by a $700,000 unused loan facility from Auracle Group Pty Ltd designated for litigation costs. The company spent $125,000 on exploration and evaluation activities during the quarter, reflecting ongoing evaluation and holding costs across its portfolio. Payments to related parties amounted to $85,000, covering director fees and technical services.
With no new exploration results this quarter, the focus remains on preparing for drilling and advancing legal claims that could materially impact the company’s asset base and financial outlook.
Bottom Line?
As Zuleika Gold gears up for drilling and legal resolution, investors will watch closely for exploration breakthroughs and the financial impact of forthcoming litigation outcomes.
Questions in the middle?
- What specific targets will Zuleika prioritise for its 2025 drilling campaign?
- How might the outcome of the damages trial against Vango and DPPL affect Zuleika’s financial position?
- Could recent drilling at Credo significantly expand the existing mineral resource estimate?