Zenith Minerals has completed its largest drilling campaign at the Consolidated Dulcie Gold Project, confirming a significant gold resource potential and securing a $7.65 million strategic placement to accelerate development.
- Largest-ever 12,621m drilling campaign at Consolidated Dulcie confirms 0.3–0.8 Moz Exploration Target
- Maiden JORC Mineral Resource Estimate for Dulcie and Dulcie North targeted for mid-February 2026
- Red Mountain drilling confirms large, vertically extensive Intrusion-Related Gold System with visible gold
- Strategic $7.65 million placement to Ida Metal Investments secures cornerstone shareholder with 10.18% stake
- Strong cash position of $7.6 million supports ongoing exploration and resource definition
A Defining Quarter for Zenith Minerals
Zenith Minerals Limited (ASX, ZNC) has marked a pivotal phase in its evolution with the completion of its largest drilling campaign to date at the Consolidated Dulcie Gold Project in Western Australia. The extensive 12,621-metre reverse circulation (RC) drilling across 77 holes has validated the company's previously announced Exploration Target of 0.3 to 0.8 million ounces of gold, setting the stage for a maiden JORC-compliant Mineral Resource Estimate (MRE) expected by mid-February 2026.
Simultaneously, Zenith has advanced its Red Mountain Gold Project in Queensland, where recent drilling has confirmed a large, vertically extensive Intrusion-Related Gold System (IRGS). The discovery of visible gold at depth and strong lateral extensions along a northwest-trending corridor underscore the project's significant scale and potential.
Consolidated Dulcie, From Exploration to Resource Definition
The Consolidated Dulcie Gold Project is rapidly emerging as a district-scale gold asset. The recent drilling campaign focused on testing the six-kilometre Dulcie gold corridor, which includes granted Mining Leases and the Dulcie Subsurface Rights Area. Results to date confirm broad, shear-hosted gold mineralisation with predictable geometry and continuity, consistent with the Exploration Target range of 10 to 24 million tonnes at 0.9 to 1.1 grams per tonne gold.
Notably, the drilling returned the highest-grade intercept recorded at the project so far, 3 metres at 22.67 grams per tonne gold, including 1 metre at 56.76 grams per tonne. These high-grade zones within a broader mineralised envelope highlight the economic robustness of the system.
With approximately half of the assay results received, Zenith is on track to deliver a maiden JORC Mineral Resource Estimate for Dulcie and Dulcie North, building on the existing Dulcie Far North Inferred Resource of 8.2 million tonnes at 1.15 grams per tonne for 302,000 ounces. The project's granted tenure, near-surface mineralisation, and proximity to operating processing plants like Marvel Loch provide a clear pathway towards low-capital development options.
Red Mountain, Confirming Scale and Fertility
At Red Mountain, the December quarter drilling extended the mineralised footprint laterally and confirmed the vertical extent of the IRGS beyond 530 metres depth. Diamond drilling revealed multiple high-grade internal zones, while the first visible gold was observed in altered granite breccia, reinforcing the system's fertility and resemblance to major deposits such as Mt Wright and Mt Rawdon.
Reverse circulation drilling returned standout intercepts, including 122 metres at 1.28 grams per tonne gold, with internal zones reaching up to 30.9 grams per tonne. These results have prompted the commencement of diamond drilling from RC pre-collars to test deeper breccia-hosted mineralisation and refine targeting towards the interpreted high-grade core.
Strengthening the Balance Sheet and Leadership
Financially, Zenith has bolstered its position through a strategic placement raising $7.65 million at 12.75 cents per share, bringing Ida Metal Investments Pty Ltd on board as a 10.18% cornerstone shareholder. This capital injection ensures funding certainty to maintain multiple rigs in the field and sustain exploration momentum across both gold projects.
The company ended the quarter with a cash balance of $7.6 million and no debt, positioning it well to execute its exploration and development plans. Management changes include the appointment of James Major as Exploration Manager, bringing over eight years of experience to advance resource definition and exploration activities.
Broader Portfolio and Strategic Outlook
Beyond gold, Zenith maintains strategic interests in lithium and zinc projects, including the Rio Lithium Project and Waratah Well Project in Western Australia, and a carried 25% interest in the Earaheedy Zinc Joint Venture. While lithium market conditions remain subdued, these assets provide optionality for future growth aligned with energy transition trends.
Zenith's disciplined approach to exploration, combined with a strengthened capital base and clear development pathways, positions the company as an emerging gold developer with significant upside potential. The upcoming maiden Mineral Resource Estimate for Dulcie and Dulcie North will be a critical milestone, likely to shape the company's trajectory in 2026 and beyond.
Bottom Line?
With resource definition accelerating and capital secured, Zenith Minerals is poised for a transformative 2026, but assay results and development plans remain key watchpoints.
Questions in the middle?
- Will the remaining assay results at Dulcie confirm or exceed the current Exploration Target assumptions?
- How will Zenith prioritise drilling and development at Red Mountain given its expanding footprint and visible gold discoveries?
- What impact will the new cornerstone shareholder have on Zenith’s strategic direction and potential partnerships?