Sampling Variance and Mining Lease Extensions Pose Challenges for Zenith’s Dulcie Expansion

Resource Upgrade Highlights

Zenith Minerals Limited (ASX – ZNC) has delivered a substantial boost to its Dulcie Far North (DFN) gold project in Western Australia, announcing a 41% increase in its inferred mineral resource. The updated estimate now stands at 8.2 million tonnes grading 1.15 grams per tonne gold, equating to 302,000 ounces of contained gold at a 0.5 g/t cut-off. This marks a pivotal advancement for Zenith, reflecting the success of recent drilling campaigns that extended known lodes and uncovered new footwall mineralisation.

Strategic Consolidation and Exploration Potential

The resource growth is complemented by Zenith’s strategic acquisition of a 3-kilometre southern extension to the Dulcie Gold Project, effectively consolidating a contiguous land package spanning over 6 kilometres of strike. This acquisition enhances the project's exploration and development prospects, providing a solid foundation for future resource expansion. The DFN deposit now comprises ten stacked, shallow to moderately dipping gold-bearing lodes, with significant potential for further growth through targeted drilling, particularly in the footwall domains.

Drilling and Methodology

The resource update is underpinned by a comprehensive drilling program completed between February and April 2025, involving 37 Reverse Circulation (RC) holes. Zenith’s rigorous sampling and quality control protocols, including enhanced duplicate sampling and systematic QAQC measures, support the robustness of the estimate, although some sampling variance has been noted and is subject to ongoing investigation. The mineral resource is classified as Inferred under the JORC 2012 Code, reflecting the current confidence level based on drill spacing and data quality.

Mining and Development Outlook

Mining assumptions currently favour open pit extraction, consistent with the deposit’s shallow dip and grade profile. While no metallurgical test work has been completed specifically for DFN, analogous mineralisation within the Dulcie trend has demonstrated recoveries exceeding 90%. Zenith plans to commence follow-up drilling in the third quarter of 2025 to test open extensions along strike and at depth, as well as to further delineate the newly identified footwall lodes. These efforts aim to convert Inferred resources to higher confidence categories, advancing the project towards potential development.

Broader Strategic Positioning

Managing Director Andrew Smith emphasised the significance of this milestone, highlighting the project's scale and the company’s strengthened position within the Marvel Loch–Forrestania gold belt. The consolidation of mineral rights and the expanded landholding provide Zenith with a compelling platform to build critical mass and position Dulcie as a cornerstone of its future gold production pipeline.