Zenith Minerals (ASX:ZNC) Secures $275,000 CEI Grant for Red Mountain Gold Project
Grant Secured
Zenith Minerals Limited (ASX:ZNC) has been awarded a grant of A$275,000 from the Queensland Government’s Collaborative Exploration Initiative (CEI) Round 9. This funding supports deep diamond drilling at the company’s 100%-owned Red Mountain Gold Project, targeting primary gold potential with associated copper and molybdenum mineralisation.
Project Potential
The CEI grant enables Zenith to accelerate testing of a potential large-scale intrusion-related gold system at Red Mountain. Recent technical assessments by RSC confirm the project’s characteristics align with a vertically zoned intrusion-related gold system, indicating significant mineralisation potential at depth.
RSC’s Independent Assessment
RSC, a renowned geological consultancy, evaluated Red Mountain and identified key indicators of a porphyry-style system, similar to Queensland’s Mt Wright and Mt Rawdon. Findings highlight strong mineralisation below current drilling depths, with gold hosted in rhyolite units and deep-seated intrusions driving the system.
Drilling Plans
Following the grant, Zenith plans to commence a deep diamond drilling campaign in Q2 2025, targeting the interpreted intrusive core beneath the breccia system. The campaign includes drilling to over 400m depths and integrating assay results from previous core drilling into target planning.
Executive Comments
Andrew Smith, Managing Director of Zenith Minerals, stated, “We’re very pleased to have received this support from the Queensland Government through the CEI program. This funding will directly support our deep drilling campaign at Red Mountain, targeting what we believe could be a significant gold system with copper and molybdenum as part of a potential broader porphyry-style, intrusion-related mineralising event. The recent independent review by RSC confirmed Red Mountain displays all the key hallmarks of a vertically zoned IRGS, with substantial potential at depth. With this co-funding in place, together with the pending proceeds from the sale of the Kavaklitepe asset in Turkey for A$0.83m Zenith will have sourced over $1.1m with no equity dilution, rendering us well-positioned to advance our next phase of exploration and unlock the project’s broader critical minerals opportunity.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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