Zenith Minerals sells Mt Alexander Project

Zenith Minerals sells Mt Alexander Project

Zenith Minerals (ASX: ZNC) has accepted an offer to divest its wholly-owned Mt Alexander magnetite iron project in Western Australia to a private Australian company, Mt Alexander Iron Ore Pty Ltd.
Zenith will receive from MAIO an up-front cash payment of $250,000 as well as ten annual payments of $250,000 each (total $2.5 million) once the project has reached commercial production, for a total consideration of $2.75 million. The sale will free Zenith up to focus on development of its Split Rocks lithium project in WA.


Zenith Minerals (ASX: ZNC) has accepted an offer to divest its wholly-owned Mt Alexander magnetite iron project in Western Australia to a private Australian company, Mt Alexander Iron Ore Pty Ltd.

Zenith will receive from MAIO an up-front cash payment of $250,000 as well as ten annual payments of $250,000 each (total $2.5 million) once the project has reached commercial production, for a total consideration of $2.75 million. Completion of the transaction is subject to, and conditional upon the Parties obtaining any consent or approval required under the Mining Act to the transfer of the Tenements.

Funds received from the divestment of Mt Alexander will be used as working capital and applied towards advancing the Company’s project portfolio. Zenith is focusing its exploration activities at its 100% owned Split Rocks lithium project located in Western Australia.

The Company has commenced systematic screening of its large, project landholdings (500 sqkm) at Split Rocks located within the Forrestania greenstone belt. This emerging lithium district is host to SQM-Kidman’s Mt Holland/Earl Grey lithium deposit containing 189Mt @ 1.5% Li2O (KDR:ASX Release 19th Mar 2018), with KDR the subject of an off-market takeover by Wesfarmers (ASX:WES).

Zenith’s Dulcie lithium target located in the northern portion of the Split Rocks project, where aircore and RC drilling has confirmed thick pegmatite bodies (up to 79m downhole widths) contains broad anomalous levels of lithium throughout including: 79m @ 284ppm Li2O with a peak value of 1m @ 1072ppm Li2O (ZNC ASX Release 14th August 2018).

Zenith’s proposed drill programs at Split Rocks will test both pegmatite bodies identified in historical drilling, surface lithium anomalies generated via the Company’s work programs as well as bedrock gold targets.

As announced to the ASX (21st March 2019) a detailed review by Zenith’s geological team of historical exploration reports on the area of the DHLGO leases (located immediately adjacent to the 100% Zenith owned Split Rocks project) highlight that high-grade gold mineralisation is predominantly hosted by moderately west dipping BIF units. High-grade historic drill results include: 6.0m @ 16.91 g/t Au, 2.0m @ 32.73 g/t Au, 2.0m @ 16.5 g/t Au, 2.0m @ 15.40 g/t Au, 5.0m @ 4.73 g/t Au, 4.0m @ 4.90 g/t Au and 9.0m @ 2.10g/t Au, presenting several additional high-priority target zones for follow-up by Zenith.

In-principle agreement reached with ATO: Northern Minerals

In-principle agreement reached with ATO: Northern Minerals

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