Zenith Raises A$11.15M as Red Mountain Yields 350m @ 0.47 g/t Au and Dulcie Drilling Expands
Zenith Minerals has validated a large-scale gold system at its Red Mountain project and initiated its largest ever drilling campaign at Consolidated Dulcie, backed by a strong A$11.15 million capital raise.
- Red Mountain drilling confirms extensive Intrusion-Related Gold System with visible gold
- Largest-ever 9,000–12,000 metre drilling campaign underway at Consolidated Dulcie
- A$7.65 million strategic placement to Ida Metals and completed A$3.5 million rights issue
- Sale of Turkish asset injects A$820,000 to support Australian gold exploration
- Dual-rig operations and robust cash position underpin accelerated resource growth plans
A Breakthrough Quarter for Zenith Minerals
Zenith Minerals Limited (ASX, ZNC) has delivered a defining quarter that marks a significant step forward in its Australian gold exploration strategy. The company confirmed a large-scale Intrusion-Related Gold System (IRGS) at its Red Mountain Gold Project in Queensland, a discovery that places it firmly within a highly prospective geological belt known for multi-million-ounce deposits.
Simultaneously, Zenith launched its most ambitious drilling campaign to date at the Consolidated Dulcie Gold Project in Western Australia, aiming to rapidly expand its resource base across a six-kilometre mineralised corridor. These twin advances are supported by a strengthened balance sheet following a strategic A$7.65 million placement to Ida Metal Investments and a fully underwritten A$3.5 million rights issue.
Red Mountain, Confirming Elephant Country Potential
The deep diamond drilling program at Red Mountain has validated the IRGS model with impressive assay results. Highlights include a 349.95-metre intercept averaging 0.47 g/t gold, featuring high-grade zones exceeding 6 g/t and visible gold observed at depth. This mineralisation extends over 500 metres vertically and remains open for expansion, underscoring the project's potential as a cornerstone asset.
Geological logging revealed a complex brecciated rhyolite body with strong sericite alteration halos, typical of significant gold systems. The presence of polymetallic by-products such as zinc, lead, and silver adds further value potential. Follow-up drilling is underway to test lateral extensions and high-grade zones, with the project benefiting from a $275,000 Queensland Government grant.
Consolidated Dulcie, Scaling Up Exploration
In Western Australia, Zenith has mobilised two rigs for a 9,000 to 12,000-metre reverse circulation drilling campaign across Dulcie, Dulcie North, and Dulcie Far North. This program aims to convert a significant Exploration Target of 0.3 to 0.8 million ounces of gold into JORC-compliant resources, building on an existing inferred resource of 302,000 ounces at Dulcie Far North.
The project benefits from proximity to established processing infrastructure, enhancing its development prospects. Recent tenure consolidation and heritage clearances have paved the way for this large-scale, systematic drilling effort designed to unlock district-scale gold mineralisation along the Dulcie Shear Zone.
Financial Strength and Strategic Moves
Zenith’s financial position has been bolstered by a strategic placement to Ida Metal Investments Pty Ltd, which will become a 10.18% cornerstone shareholder pending shareholder approval. The placement price represented a 15.9% premium to the previous close, reflecting strong institutional confidence. The company also completed a fully underwritten rights issue raising A$3.5 million earlier in the year, with proceeds actively funding exploration.
Additionally, Zenith finalised the sale of its 20% interest in the Kavaklitepe Gold Project in Türkiye, generating A$820,000 in cash proceeds that have been redirected to support Australian gold projects. Operational efficiencies were enhanced through a share sale facility to reduce unmarketable parcels, streamlining the shareholder register.
Looking Ahead
With dual rigs drilling at Dulcie and follow-up programs underway at Red Mountain, Zenith is well positioned to accelerate resource growth and advance its dual-hub exploration strategy. The company’s portfolio also includes lithium and base-metal projects, providing optionality for future growth as market conditions evolve.
Zenith’s upcoming Extraordinary General Meeting on 5 November will seek shareholder approval for the Ida Metals placement, a key milestone in funding its ambitious exploration agenda. As assay results continue to flow and drilling intensifies, the market will be watching closely to see how these projects translate into tangible resource upgrades and value creation.
Bottom Line?
Zenith Minerals is entering a critical phase where exploration success and strategic funding converge to potentially reshape its standing in Australia’s gold sector.
Questions in the middle?
- How will upcoming assay results from the ongoing Dulcie drilling campaign influence resource estimates?
- What are the implications if shareholder approval for the Ida Metals placement is delayed or withheld?
- Could the polymetallic credits at Red Mountain lead to a broader multi-commodity development strategy?
