Zeus Resources (ASX:ZEU) is set to acquire the Diaguili copper-gold project in Mauritania for US$2 million, backed by a fully funded $2 million placement. The shallow historical drilling shows promising copper grades, with mineralisation open at depth and along strike.
- Acquisition of 100% interest in Diaguili copper-gold project
- US$2 million staged consideration payable in cash and shares
- Historical drilling highlights up to 22.25m at 2.10% copper
- Project lies in IOCG prospective Mauritanides belt near operating mines
- A$2 million placement secured to fund acquisition and drilling
Zeus Moves into Elephant Country with Diaguili Acquisition
Zeus Resources Limited (ASX:ZEU) has inked a definitive agreement to acquire up to 100% of Sab Metals Mauritania SARL, the holder of exploration permit 2475B2 covering the Diaguili copper-gold project in southern Mauritania. The deal, valued at US$2 million split evenly between cash and shares, unfolds over four tranches spanning 24 months.
The Diaguili project sits within the Mauritanides orogenic belt, a geological corridor hosting the Guelb Moghrein copper-gold mine operated by First Quantum Minerals. This belt is known for iron oxide-copper-gold (IOCG) style mineralisation, a sought-after deposit type in global copper exploration.
Historical Drilling Reveals Shallow, High-Grade Copper Zones
Historical exploration dating back to the 1970s includes 49 drill holes, mostly terminated within 100 metres of surface. Notably, BRGM’s 1970s drilling returned significant intercepts such as 22.25 metres at 2.10% copper from 48 metres depth, including a higher-grade section of 11.25 metres at 3.36% copper. Other holes reported intervals like 12.7 metres at 2.94% copper and 35 metres at 1.44% copper starting from near surface.
Despite these encouraging grades, the mineralisation remains open both at depth and along strike. A discrete airborne VTEM conductor identified in 2008 persists across all surveyed depth channels beneath the drilled area, suggesting potential for deeper mineralisation yet to be tested.
Unverified Historical Data and Planned Confirmatory Drilling
Zeus acknowledges that original drill chips, core samples, and assay certificates are no longer available, meaning the historical results cannot be independently verified or reported under the JORC Code 2012 standards. The company plans to confirm these historical zones through a staged drilling program, starting with RC and diamond drilling to validate mineralisation at known profiles before testing the VTEM conductor at depth.
Reprocessing and 3D inversion of the 2008 VTEM data is underway, aiming to refine the geometry and depth extent of the conductor and guide drilling targets.
Funded Acquisition Supported by $2 Million Placement
To finance the acquisition and exploration activities, Zeus has secured firm commitments for a two-tranche placement raising approximately A$2 million at $0.006 per share. The placement includes free attaching options exercisable at $0.02 and is lead managed by GBA Capital Pty Ltd. Directors have committed to participate with $90,000 worth of shares included in the second tranche, which is subject to shareholder approval.
The staged acquisition consideration includes an exclusivity fee already paid and tranches aligned with key completion milestones, subject to due diligence, shareholder approvals, and regulatory consents under Mauritanian mining laws.
Strategic Entry into Mauritania’s Mining Sector
Mauritania offers a mining-friendly jurisdiction with established infrastructure and significant operating mines, including the Guelb Moghrein copper-gold and Tasiast gold mines. The Diaguili project’s location near the Senegal River and accessible road infrastructure allows for relatively straightforward logistics during the dry season.
Zeus’s entry into this region complements its portfolio of early-stage critical mineral assets and aligns with the global copper market’s bullish backdrop, with prices hitting record highs in 2026 amid sustained demand for electrification and infrastructure.
Bottom Line?
Zeus’s acquisition of Diaguili positions it in a historically mineralised, drill-ready copper-gold project in a proven IOCG belt, with funding secured to validate and expand the target amid a strong copper price environment.
Questions in the middle?
- Will confirmatory drilling validate historical copper grades and extend mineralisation at depth?
- How will the reprocessed VTEM data influence drill targeting and project scale potential?
- What regulatory or environmental hurdles might affect the timing of exploration activities in Mauritania?