The recently concluded RC drilling program was designed to test high-priority IP anomalies identified in Zenith's updated 3D geological model.
This phase of exploration builds on earlier drilling, which returned significant intercepts such as 129m @ 0.51 g/t Au from 225m (including 12m @ 1.36 g/t Au and 8m @ 1.39 g/t Au) 2 and highlighted the continuity of mineralisation within the breccia system.
Highlights
Key New Gold Drill Intercepts include: o 23m @ 1.49 g/t Au from 48m, including 2m @ 11.3 g/t Au from 55m (ZRMRC055) o 4m @ 4.45 g/t Au from 122m including 2m @ 8.11 g/t Au from 122m (ZRMRC056) o 3m @ 1.00 g/t Au from 90m including 1m @ 1.69 g/t Au from 91m (ZRMRC053) 1 Drilling Details: A total of 1,809 metres drilled across 11 Reverse Circulation (RC) holes, with nearly all planned holes completed successfully. The program was curtailed due to adverse weather conditions. IP Targets: Drilling intersected widespread gold mineralisation associated with sulphides that are coincident with shallow Induced Polarisation (IP) geophysical anomalies in places, verifying geophysical modelling as a reliable tool for future targeting. Geological Insights: Geochemical modelling indicates: o Significant down-hole multi-element anomalism, strongly supporting intrusion-related gold system (IRGS) prospectivity. o A surface molybdenum anomaly in the core of the breccia pipe is indicative of proximity to the hotter part of the system. It will require a deep diamond hole to properly test magma-source prospectivity in the core of the breccia. Zenith has engaged highly respected consultants/independent 3rd party experts RSC consulting to assist in modelling the IRGS and other potential styles of mineralisation, and the geodynamic setting at Red Mountain
Andrew Smith, Managing Director of Zenith Minerals, commented: The completion of this phase of drilling at Red Mountain is a significant milestone for the project. We are particularly excited by not only the gold mineralisation encountered in multiple holes, but also the strong geochemical pathfinders that indicate the potential for a spectacularly zoned system, similar to Mt Wright and the (relatively) nearby Mt Rawdon systems. Results indicate proximity to the primary fractionated magma source driving the system, as suggested by the geological and geochemical indicators observed to date. The successful pre-collar drilling provides a clear pathway for the deep diamond drill hole planned for 2025, allowing us to test the nature of this intrusion at depth. We look forward to advancing our exploration efforts with confidence.'
The next phase of gold exploration will focus on deep diamond drilling along the flanks of the breccia system, using Mt Wright as an analogue, whereby the 'gold window' is expected at depths greater than 200m (Halley 2024), as indicated by mineralisation in ZRMDD052 (129m @ 0.51 g/t Au from 225m). Zenith Minerals is awaiting the outcome of a Queensland Government grant application submitted to support this next phase of exploration of up to $250,000. A decision is expected in February-March 2025. If awarded, the grant will provide vital funding to accelerate deep drilling efforts and further geophysical studies, enabling a more detailed evaluation of the mineralisation controls and depth extent and nature of the potential causative intrusion at Red Mountain. A pre-collar (ZRMDRC61) has been drilled as part of the planned deep diamond drill hole during the last phase of RC drilling. This pre-collar will enable targeted exploration at depth, specifically testing the potential for a fractionated magma source beneath the breccia system. The use of Reverse Circulation (RC) for this pre-collar allows for efficient and cost-effective access to deeper targets, providing a strong foundation for diamond drilling in the next phase of exploration. Pending assay results from previously drilled diamond core samples are expected to provide critical insights into the system's broader geochemical and mineralogical framework. These results, combined with the multielement geochemistry already indicating highly anomalous molybdenum, tungsten, bismuth, copper and tellurium, will help refine the understanding of Red Mountain's IRG potential. By leveraging the results of the completed RC program, pre-collar drilling, and pending core assays, Zenith Minerals remains committed to unlocking the full value of this highly prospective asset.
IRGS prospectivity
The Red Mountain gold and multi-element geochemical database was reviewed by an independent 3rd part geochemical expert (Scott Halley) in September 2024. Based on fractionation indicators, Halley theorised that the mineralised rhyolite unit logged in ZRMDD052 was possibly the causative batch of magma linked to the gold mineralisation encountered on the western flank of Red Mountain. Using Mt Wright as an analogue, the top of the Mt Wright breccia pipe had low grade Au but very high antimony and was vertically zoned, with a discrete gold window within the vertical zoning pattern (Halley, 2024). Deeper diamond drilling along the flanks of the breccia system is required to properly test the IRGS/Mt Wright-analogue hypothesis and is the focus of the 2025 drilling campaign. The spatial distribution of gold mineralisation to date indicates gold is hosted in mineralised ring dykes surrounding the mapped breccia pipe on the western flank of Red Mountain; the IRGS may therefore be a later event that exploited the pre-existing structural architecture, on the flank of the main breccia system. The presence of significant molybdenum anomalism in soils across the top of the breccia pipe would indicate proximity to the primary magma source that is driving the Red Mountain system (Halley 2024). It was advised to conduct a review of any surface geochemical surveys (soils/rock chip samples) by ICP-MS across the top of the breccia pipe to look for Mo anomalism. Although designed with a gold focus, the surface samples collected by Zenith over the project area in previous years have all been analysed for a large suite of multi-elements by four acid digest-ICP-MS (ALS: ME-MS61). Returning to the dataset, a strong coherent Mo-anomaly was observed in the surface sampling results in both soils and rock chips, with the highest value within the northeast sector of the breccia pipe, returning 41ppm Mo in rock chip sample RMRK1549, with multiple anomalous proximal soil samples great than 5ppm Mo (up to 17.3ppm Mo). This is indicative of a hotter, more proximal part of the Red Mountain system. Most of the anomalous molybdenum samples are coincident with a strong magnetic-high response as determined by RTP 1VD AMAG data in the NE quadrant of the mapped breccia pipe
Project Overview
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.
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. Recent reevaluation of the geochemical data collected to date, both surface sampling and down-hole geochemistry, continues to support the IRGS story. 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 rates6. 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.
These results demonstrate both the near-surface and deeper potential for gold, silver and copper mineralisation at Red Mountain, making it a prime candidate for deeper exploration. Multi-element geochemistry analysis was completed at the same time as Au assay, utilizing the four acid ICP-MS method (ALS: ME-MS61). The Zenith team has conducted a thorough review of this geochemical data set (>3,000 samples to date) using the ioGAS software package, with significant abundances of key Intrusion-Related Gold System (IRGS) pathfinders identified.
Contact:
Andrew Smith
Tel: +61 8 9226 1110
Email: info@zenithminerals.com.au
Web: www.zenithminerals.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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