Zenith Minerals Limited - Further High-Grade Gold in Drilling at Kavaklitepe Project

Zenith Minerals Limited - Further High-Grade Gold in Drilling at Kavaklitepe Project

Zenith Minerals (ASX:ZNC) has announced further trial drilling results from the Kavaklitepe Gold Project in Turkey, with results including 7.8m at 7.3g/t Au from 3.3m. This drillhole, KT-03, is located ~26m SE of drillhole KT-02, which returned 9m @ 5.2g/t Au from surface. To date, 276m out of the 1,500m drill program has been completed with further results expected over the coming months.

Following events in Turkey we will continue to monitor the situation closely over the coming days. Exploration activities at the Kavaklitepe project continue as normal.

On-going, preliminary shallow drill testing at the Kuzey (North) Zone at Kavaklitepe returns 7.8 metres (“m”) @ 7.3 grams per tonne gold (“g/t Au”) from 3.3 m depth. This result is from the third drill hole (KT-03) completed to date and confirms the presence of high-grade, near surface, gold mineralisation intersected in drill hole KT- 02 that returned 9 m @ 5.2 g/t Au from surface (reported to the ASX on the 16th June 2016).

Zenith Minerals Limited (“Zenith” or “the Company”) is pleased to advise that ongoing short-hole drilling at the Kavaklitepe gold project in western Turkey has continued to deliver encouraging near surface high-grade gold mineralisation. Drill hole KT-03 collared approximately 26m to the south east of drill hole KT-02 (that intersected 9 m @ 5.2 g/t Au from surface) has returned 7.8 m @ 7.3 g/t Au from 3.3 m below surface.

The drill trial is being conducted to determine if a man-portable, small footprint rig can provide the depth of drilling and quality of samples required to test anomalous goldin-rock and soil anomalies, initially at the Kuzey Zone, followed by gold targets at the Discovery Zone and Guney Zone at the Kavaklitepe Project.

Kuzey Zone

Five diamond drill holes (totalling 276 m depth) have been completed to date using a man-portable rig, testing the 900m by 250m wide Kuzey Zone gold in soil anomaly only. The first hole (KT-01) was drilled at the southern end of the prospect area, the second (KT-02) 250m to the northeast along the strike of the high-grade gold surface rock samples and the third drill hole (KT-03) approximately 26 m south-east of hole KT- 02 (Figure 1).

Drill core recovery for KT-03 through the near-surface mineralized interval was satisfactory at 77%. The hole intersected a matrix-supported polymictic breccia, with illite-muscovite-fuchsite-silica altered clasts within an interpreted fault zone (Figure 2). As previously reported on the 16th June 2016, drill hole KT-02 returned 9 m at 5.2 g/t Au from surface (Figure 1) with core recoveries averaging 82% through this interval. The gold intersection reported for both holes is a down-hole width as the orientation of mineralisation is currently unknown.

Although gold was intersected in the first diamond core hole (KT-01) core recovery averaged only 24% and was not of acceptable standard, consequently the results from this hole will not be reported. Drill hole KT-04 was abandoned at 17 m depth due to low core recovery, assay results are awaited for hole KT-05, whilst hole KT-06 is currently in progress at 63.5 m depth.

Based on drilling and surface mapping to date, gold mineralisation in the Kuzey (North) Zone appears to be hosted in silicified and altered breccia zones that crosscut a meta-siltstone rock sequence.

Reporting cut-off criteria and associated JORC tables are appended to the end of this release.

Commenting on the results, the Company’s Managing Director Mr. Michael Clifford said, “This is the second intersection of high-grade, near surface gold from the Kuzey Zone, the first of 3 target areas to be tested, and provides further encouragement of sub-surface extensions to extensive outcropping high-grade rock samples. Our joint venture partner is making steady progress in unlocking the full potential of this exciting gold discovery and I look forward to providing further updates once new results are received.”

As previously reported on the 16th June 2016, 11 out of 20 individual rock samples taken within the central core of the Kuzey gold in soil anomaly over a strike of 680 m returned: 31.5 g/t Au, 19.2 g/t Au, 13.7 g/t Au, 13.2 g/t Au, 9.3 g/t Au, 8.3 g/t Au, 7.8 g/t Au, 4.8g/t Au, 4.3 g/t Au, 2.5 g/t Au and 1.1 g/t Au. The samples confirmed the location and tenor of high-grade gold previously reported along the axis of the gold-in-soil anomaly at Kuzey.

Continuous rock chip samples taken along a forestry track returned 42 m @ 1.5 g/t Au (entire mineralised interval, no cut-off grade applied), including : 3 m @ 3.7 g/t Au and 15 m @ 2.8 g/t Au (open ended to the south east) from the southern end of the Kuzey Zone. The zone partially replicated sampling by Columbus Copper that returned 54 m @ 3.3 g/t Au, but as the new sample interval is open ended a direct comparison of the results cannot be made.

At the Kuzey zone a strong chargeability anomaly (>15-20Mv/v) was identified by a gradient array survey trial completed by Zenith in 2015 directly beneath coincident high-grade surface rock chip samples (7.6 g/t Au, 22.7 g/t Au) and a 50 ppb gold in soil anomaly (maximum 6050 ppb Au).

Discovery Zone

Continuous rock chip samples taken along the northern edge of a forestry track in the Discovery Zone gold-in-soil anomaly (400m length) returned: 27 m @ 1.4 g/t Au (entire mineralised interval, no cut-off grade applied), including: 12 m @ 1.6 g/t Au, 3 m @ 2.4 g/t Au and 4.4 m @ 1.6 g/t Au (open ended to the south east). This gold mineralised zone was previously sampled by Columbus Copper and returned 21 m @ 2.6 g/t Au. A direct comparison is not possible as the mineralised zone reported above remains open ended. A series of discontinuous rock chip samples taken along the southern edge of the forestry track and parallel to the interval reported above returned: 1.9 m @ 1.1 g/t Au, 3.9 m @ 1.5 g/t Au, 3.3 m @ 1.6 g/t Au and 2.5 m @ 2.6 g/t Au.

In addition, a single rock chip sample taken 12 m north of the roadside sampling at the Discovery Zone returned 3.3g/t Au over a 3 m sample length.

Guney Zone

The 1000m long Guney (South) Zone gold-in-soil anomaly is located approximately 500m southeast of the Kuzey Zone. Surface gold mineralisation has been identified in continuous rock chip samples taken at Guney, returning 4.7 m @ 1.7 g/t Au, whilst another single rock sample taken 5 metres south returned 1.5 g/t Au (Figure 3).

A strong chargeability anomaly was also identified by Zenith’s gradient array geophysical trial flanking the Guney Zone.

Planned Programs at Kavaklitepe

This current program includes up to 1500 m of drilling, depending on the performance of the manportable drill rig, along with geological mapping, a grid based hand pitting program to assess bedrock in areas of the gold-in-soil anomalies and more detailed ground geophysical surveys (IP and magnetics). It is anticipated that this program will be completed during the 2016 field season.

Background on the Kavaklitepe Project

Columbus Copper discovered mineralization at Kavaklitepe in 2013 by following up a stream sediment anomaly to a stream bed outcrop that returned 5.2 g/t Au. Subsequently a small trench in a nearby road cut returned 2.6 g/t Au over 21 metres of exposure. About 1.4 kilometres northwest from the discovery outcrop four samples from a gold bearing breccia zone returned 28.2 g/t, 21.7 g/t, 6.7 g/t and 3.6 g/t Au respectively (Columbus Copper release March 1, 2013). Further rock sampling along a road bank in this zone confirmed the presence of high‐grade gold mineralization returning 54 metres of continuous rock chips with an average grade of 3.3 g/t Au (no gold grade cutoff applied), including 21.5 metres grading 7.2 g/t Au. A total of 2,127 soil samples were also collected on the Property in 50 metre x 50 metre and 100 metre x 100 metre grids covering an area of approximately 11 square kilometres, of which 176 samples returned gold grades higher than 50 ppb, 112 ‐ higher than 100 ppb and 40 ‐ higher than 250 ppb with 9 of these samples containing more than 1000 ppb (1 g/t) Au. The soil sampling outlined a potentially mineralized zone measuring 850 metres by 250 metres and continuing for another 800 metres to the southwest. There are strong, coincident arsenic and antimony anomalies.

Kavaklitepe Joint Venture

Zenith’s wholly owned subsidiary S2M2 Coal Pty Ltd previously announced that it had entered into an exclusive option to earn an interest in the Kavaklitepe gold property located in western Turkey from Columbus Copper (Zenith ASX release 23rd Dec 2013). That agreement was subsequently replaced by an option agreement with Teck Anadolu Madencilik A.S. (“Teck”), a Turkish subsidiary of Teck Resources Limited, (Zenith ASX release 30th November 2015) whereby Teck may earn a 70% interest in the Kavaklitepe gold project from Zenith by spending US$700,000 in property expenditures including a minimum of 1500m of drilling. Following the initial option stage both companies can then continue to explore or develop the property by contributing their pro-rata costs or they may elect to dilute their interests according to a standard industry formula. If Zenith reduces its equity below 10% then the remaining interest is converted to a 5% net profit interest royalty.

Should Teck not exercise its initial option to earn 70% equity then Zenith will own 100% of the project with Teck retaining a 2% net smelter royalty.

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Michael Clifford, who is a Member of the Australian Institute of Geoscientists and an employee of Zenith Minerals Limited. Mr Clifford 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 Clifford consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Table 1: Drill Hole Collars and Results Summary

Drill intersections reported in this release are calculated using the following criteria:

  •  Minimum reportable average gold grade of intercept of 1.0 g/t Au;
  • Length weighted arithmetic average gold grades;
  • Lower cut-off gold grade of 0.5 g/t Au;
  • Maximum length of internal dilution 1m;  
  • No high-grade gold top cuts; and
  • Treatment of repeat assays (arithmetic average of all repeat fire assay results).

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