Zenith Secures 3km Strike Extension and 2% Royalty in Dulcie Gold Expansion

Strategic Expansion of Dulcie Gold Project

Zenith Minerals Limited has announced a significant step forward in its Western Australian gold exploration strategy by securing exclusive subsurface exploration and mining rights below 8 metres depth over a highly prospective tenement package adjacent to its Dulcie Far North (DFN) gold resource. This acquisition extends the Dulcie Gold Project’s strike length by approximately 3 kilometres, consolidating Zenith’s position within the Marvel Loch–Forrestania gold belt, a region known for its rich mineralisation.

The newly acquired tenements include areas currently hosting active heap-leach mining operations. This operational continuity not only confirms existing permitting pathways but also substantially de-risks the project by demonstrating established mineralisation amenable to mining. The ongoing surface mining by the current operator is expected to streamline subsurface exploration and accelerate resource expansion efforts.

Robust Historical Drilling and Resource Potential

Zenith’s previous drilling campaigns in 2020 and 2021 within the Dulcie area revealed multiple high-grade gold intersections, including impressive intercepts such as 32 metres at 9.4 grams per tonne gold from 14 metres depth. These results confirmed the southern continuation of the DFN gold mineralisation and highlighted extensive shallow zones that remain open for further exploration.

While exploration was paused in late 2021 as Zenith shifted focus towards lithium projects, this acquisition revives the opportunity for rapid resource growth. The company is currently finalising an updated Mineral Resource Estimate (MRE) for the DFN deposit, incorporating recent drilling results that extended known mineralisation and identified new stacked lode structures. This update is anticipated within the next three weeks and is expected to reflect the expanded exploration footprint.

Commercial Terms and Future Options

The acquisition was secured through a binding agreement with Highscore Pty Ltd and Richard Read and Associates Pty Ltd, under which Zenith will pay AUD 250,000; 80% of which will be settled in Zenith shares subject to a six-month escrow; and grant a 2% Net Smelter Return royalty on future subsurface gold production. Additionally, Zenith commits to a minimum exploration expenditure of AUD 2 million over four years, ensuring active advancement of the project.

Importantly, the agreement includes milestone payments of AUD 150,000 in shares for every incremental 100,000 ounces of gold delineated, incentivising resource growth. Zenith also holds options exercisable within five years to acquire either the subsurface rights outright for AUD 500,000 or full ownership of the tenements; including surface rights; based on a gold price-linked formula ranging from AUD 5 million to AUD 10 million. These options provide flexibility for Zenith to scale its involvement as exploration progresses.

Strategic Positioning and Infrastructure Advantages

The Dulcie Gold Project benefits from proximity to existing infrastructure, including sealed roads and the Marvel Loch Processing Plant operated by Barto Gold, which offers potential toll-treatment opportunities. Recent regional upgrades, such as the sealing of Forrestania Road, further enhance logistics and economic viability.

Zenith’s broader portfolio also includes lithium assets within the Split Rocks tenure, notably the Rio Lithium Project with a maiden resource estimate, underscoring the company’s diversified approach to mineral exploration in Western Australia.

Overall, this acquisition represents a strategic consolidation that not only expands Zenith’s exploration footprint but also positions the company to accelerate resource definition and development in a proven gold belt with established infrastructure.