Zenith Minerals Raises A$3.5M, Dulcie Resource Grows 41% to 302,000oz Gold

• A$3.5 million raised via fully underwritten rights issue
• 41% increase in Dulcie Far North gold resource to 302,000 ounces
• Planned 9,000-12,000m RC drilling campaign at Consolidated Dulcie Gold Project
• Targeted deep diamond drilling at Red Mountain Gold Project underway
• Strong financial position supported by asset sales and exploration grants

Capital Raising to Fuel Exploration Ambitions

Zenith Minerals Limited (ASX, ZNC) has announced the successful completion of a fully underwritten rights issue, raising approximately A$3.5 million before costs. This capital injection is earmarked to accelerate high-impact exploration drilling and resource growth initiatives at Zenith’s flagship Consolidated Dulcie Gold Project in Western Australia and the Red Mountain Gold Project in Queensland.

The rights issue offered two new shares for every seven held by eligible shareholders at an issue price of A$0.03 per share, with attaching options exercisable at A$0.077. The strong take-up, supplemented by underwriter allocations, reflects investor confidence in Zenith’s strategic growth plans.

Resource Growth and Project Consolidation at Dulcie

Zenith recently announced a 41% increase in the JORC Inferred Mineral Resource Estimate (MRE) at its Dulcie Far North Project, now standing at 8.2 million tonnes grading 1.15 grams per tonne gold for 302,000 ounces of contained gold. This significant uplift provides a robust platform for further resource expansion.

Moreover, Zenith has consolidated its tenure along over 6 kilometres of highly prospective strike by acquiring the Dulcie Subsurface Rights Area, extending the project southwards. This consolidation not only enhances resource upside but also streamlines exploration efforts across a contiguous gold corridor within the Southern Cross–Forrestania Greenstone Belt.

Upcoming Drilling Programs and Exploration Strategy

With the new funding, Zenith plans a substantial reverse circulation (RC) drilling campaign of 9,000 to 12,000 metres at the Consolidated Dulcie Gold Project. This program aims to expand the current resource base and advance the project towards commercial gold production, leveraging granted mining leases and existing surface operations that de-risk the development pathway.

Simultaneously, the company is mobilising for a targeted deep diamond drilling campaign at the Red Mountain Gold Project in Queensland. This program seeks to test for large-scale, potentially transformative gold and copper-gold porphyry mineralisation, offering a high-reward exploration opportunity.

Financial Position and Strategic Outlook

Beyond the rights issue proceeds, Zenith’s financial position is bolstered by recent asset sales in Turkey and exploration grant funding in Queensland. This strong capital base supports a higher tempo of exploration activity through fiscal year 2025/26, underpinning the company’s trajectory towards resource growth and potential production.

Managing Director Andrew Smith emphasised the dual nature of Zenith’s exploration portfolio, combining low-risk resource expansion at Dulcie with blue-sky optionality at Red Mountain. The company’s strategic consolidation and focused drilling programs aim to create substantial shareholder value in the near to medium term.

Bottom Line?

Zenith’s fresh capital and strategic project consolidation set the stage for a pivotal exploration phase that could redefine its growth trajectory.

Questions in the middle?

• How will assay results from the upcoming Dulcie and Red Mountain drilling campaigns influence Zenith’s resource estimates?
• What timelines are expected for regulatory approvals and commencement of commercial production at Dulcie?
• Could the exploration success at Red Mountain unlock a major copper-gold porphyry system with transformative potential?