Zenith’s Dulcie drilling opens a new resource opportunity

Dulcie Central delivers gold across the unresource corridor

Zenith Minerals Limited (ASX:ZNC) has finished a drilling campaign that could add a new chapter to its Consolidated Dulcie Gold Project, with gold intercepts reported in 20 of the 24 holes drilled at Dulcie Central. The corridor sits between the Dulcie North and Dulcie deposits, covers roughly 600 metres and is not included in Zenith’s existing 675,000-ounce Inferred Mineral Resource.

“Gold Portfolio Overview”

“Dulcie Central plan showing the RC holes completed between Dulcie North and Dulcie within M77/599, outside the current Mineral Resource, with results reported during and after…”

Caption and image © Zenith Minerals Limited. From “Quarterly Activities and Cashflow Report”, 28 Oct 2026.

The results included 6 metres at 4.14 grams per tonne gold from 123 metres in hole SRRC182, including 3 metres at 7.75 g/t Au. Other post-quarter results included 5 metres at 1.59 g/t Au from 41 metres and 7 metres at 0.82 g/t Au. These are exploration results, however, and do not yet establish the continuity, classification or economic potential required for a Mineral Resource.

A maiden resource is now under assessment

“Consolidated Dulcie Gold Project plan showing the Inferred Mineral Resource block model (Au ppm) at Dulcie Far North (DFN), Dulcie North and Dulcie, and the RC holes completed…”

The 34-hole programme covered 4,601 metres across Dulcie Central, Water Bore, Scott’s Grey and Dulcie South. Zenith said it is assessing whether Dulcie Central supports a maiden Mineral Resource estimate, while also reviewing whether results at Scott’s Grey and Dulcie South justify an update to the existing resource.

The company’s latest Dulcie drilling results had already pointed to mineralisation outside the current resource. Zenith now plans Programme of Work applications for approximately 850 RC holes, mostly on a nominal 40-metre by 40-metre spacing rather than the roughly 80-metre spacing underpinning the existing Inferred estimate. The proposed work remains subject to approvals, funding, contractor availability and final programme design.

Forrestania offer becomes unconditional

The drilling story is unfolding alongside a takeover process that has moved materially in Forrestania Resources’ favour. Forrestania declared its offer free of all defeating conditions on 22 October, and its substantial holding notice dated 27 October disclosed a relevant interest in 397,419,666 Zenith shares, or 61.42%.

The corporate process has not been frictionless. The Takeovers Panel declared unacceptable circumstances in August and issued final orders in September, while a review Panel later affirmed the decision after accepting undertakings from Zenith and Forrestania for additional disclosure. The Panel subsequently declined to conduct proceedings over the board’s handling of Aurenne’s proposal, following the Panel ruling on Aurenne.

Cash supports near-term work but limits room for error

Zenith ended September with A$4.37 million in cash after spending about A$1.02 million on exploration and evaluation and receiving A$1.67 million from the exercise of listed options. The Appendix 5B calculated estimated funding of 2.95 quarters based on quarterly net operating outflows of A$1.479 million, with no financing facilities available.

“Cross-section A–A′ through the Red Mountain breccia system showing deep diamond hole ZRMCD073 and prior drilling (refer ASX announcement 10 April 2026).”

That funding calculation is a snapshot rather than a budget for the proposed 850-hole campaign. The cost and timing of any larger drilling programme, as well as its funding source, remain unresolved in the report. Zenith has prioritised Dulcie while Red Mountain remains an earlier-stage target: deep drilling confirmed the system extends beyond 700 metres, but grades were generally low across broad intervals at depth and no Mineral Resource has been estimated there.

November brings two decisive tests

For shareholders, the next few weeks contain two separate tests. Forrestania’s offer is scheduled to close at 5:00pm AWST on 12 November unless extended, while accepting shareholders may withdraw until 5 November under the Panel’s final orders. Zenith’s annual general meeting is scheduled for 30 November.

On the exploration side, the key question is whether Dulcie Central’s encouraging hit rate translates into sufficient geological and grade continuity for a resource estimate. A positive answer could sharpen the asset’s value, but the proposed follow-up drilling still depends on approvals, funding and the outcome of a takeover process in which Forrestania already holds a majority interest.