The Red Mountain Gold Project ('the Project') is located within Queensland's Auburn Arc, a region known for its rich mineral endowment.
The Project presents significant gold and silver mineralisation hosted within a large breccia pipe system. Discovered by Zenith in 2017, the Project has yielded compelling results through successive exploration phases, confirming its potential as a core asset within Zenith's gold portfolio. With 100% ownership, the Project benefits from existing infrastructure and proximity to other notable gold projects in the region, providing logistical advantages and cost efficiencies for future operations
Andrew Smith, Managing Director of Zenith Minerals, commented: 'The launch of this next drilling campaign at Red Mountain marks a pivotal step in advancing this high-potential asset. The updated geological insights and newly defined high-priority targets make this a particularly exciting phase. Our objective is to drill test several shallow geophysical anomalies with RC as a prelude to deeper diamond drilling in 2025, allowing us to maximise value through well-defined, aggressive exploration.'
A recent update to the 3D geological model, combined with reinterpreted geophysical data, has identified high-priority targets, especially in underexplored zones. This refined interpretation enhances Zenith's focus on areas with the greatest resource potential, allowing for more targeted exploration that aligns with the Company's strategic objectives. The geological setting at Red Mountain shares notable similarities with other major Australian gold deposits such as Mt Wright, Mt Leyshon, and Mt Rawdon. These systems, characterised by breccia complexes and intrusion-related mineralisation, have produced substantial gold resources, highlighting Red Mountain's potential to host large-scale mineralisation within a similar framework. Metallurgical test work has shown that much of the gold at Red Mountain is free-milling and nonrefractory, with average recoveries of 83.3% via conventional cyanide leaching. Notably, samples with lower arsenic content achieved recoveries as high as 95.8%, supported by strong gravity gold recovery rates.1 These positive results indicate a straightforward processing path, which could contribute to the project's economic viability and align with Zenith's goal of cost-effective gold production
Geological Overview The Red Mountain Gold Project is situated within Queensland's fertile Auburn Arc, a region renowned for its complex geological setting and significant mineral endowment. The Project's primary host is a breccia pipe system, intruded by a mineralised flow-banded rhyolite unit and hosted within the Rawbelle Granodiorite (locally known as the Colodan Granodiorite). Gold and silver mineralisation at Red Mountain is predominantly located along the western flank of the breccia pipe, where hydrothermal fluids infiltrated structurally prepared zones, depositing gold, silver, and minor base metals such as copper, lead, and zinc. The combination of brecciated host rocks and intense alteration has created an environment conducive to large-scale mineralisation, with the potential for both high-grade veins and bulk tonnage targets. The Red Mountain system exhibits geological features similar to several well-known Australian gold deposits, such as Mt Wright, Mt Leyshon, and Mt Rawdon, which are characterised by intrusion-related breccia complexes. These analogues are highly productive gold systems that have yielded millions of ounces of gold, underscoring Red Mountain's potential as a large-scale gold system. Like these deposits, Red Mountain's breccia pipe is believed to extend to significant depths, offering ample exploration potential both laterally and at depth. The recent update to the 3D geological model, combined with reinterpreted geophysical data, has further refined Zenith's understanding of the mineralisation patterns, allowing the identification of high-priority drill targets in previously underexplored zones and enhancing the potential for new discoveries within the system.
Contact:
Andrew Smith
Tel: +61 8 9226 1110
Email: jm@janemorganmanagement.com.au
Competent Persons Statement
The information in this report that relates to Exploration Results, Mineral Resources and exploration activities is based on information compiled by Mr. Christopher Shanley, who is a Member of the Australian Institute of Geoscientists and an employee of Zenith Minerals Limited. Mr. Shanley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Shanley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears
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