Zenith Minerals has given shareholders plenty to smile about after the Perth explorer’s share price closed the week 28% higher following a strong investor reception to high-grade, near-surface gold intersections from a maiden drilling program at its Red Mountain project in Queensland.
Zenith (ASX: ZNC) is among a handful of juniors to hit the ground running as COVID-19 restrictions continue to relax and deliver promising early results.
Magmatic Resources (ASX: MAG) said this week it had commenced reverse circulation (RC) drilling at the Lady Ilse gold-copper porphyry target and followed up with a small RC program at the nearby Boda North gold-copper porphyry target as it continues to explore its greater Wellington North project area in the East Lachlan belt of NSW.
St George Mining (ASX: SGQ) has ramped up to round-the-clock drilling at its high-grade Mt Alexander nickel-copper sulphide project in WA’s northern Goldfields while Artemis Resources (ASX: ARV) has returned to the Munni Munni platinum metals project in the Pilbara.
Zenith, with its shares at 10.5¢ by last night, was not the only stock to enjoy a share price surge this week.
Magmatic’s stock was up 10.6% to 26¢ over the week while St George put 9.1% to 12¢ and Artemis 30.6% to 4.7¢.
The 13-hole RC program at Munni Munni will aim to extend the primary reef mineralisation and test historical assay grades from diamond drilling using RC drilling.
Munni Munni is regarded as one of Australia’s largest undeveloped palladium projects. Platinum group metals have been on a tear this year, with palladium soaring to US$2,875/oz in February and currently trading at US$1,931 per ounce, a 33% rise on this time last year.
Artemis executive director Alistair Clayton said it was “terrific to be back exploring” at Munni Munni.
“Drilling using an RC rig is designed to grow the footprint of the known reef-style PGE mineralisation and test for, what our technical team believes, may be a second reef below and subparallel to the primary reef,” he said.
Zenith considers the gold mineralisation at Red Mountain to be analogous to Queensland’s large-scale commercial gold deposits. It is further encouraged by the fact that Red Mountain is within 100km of Evolution Mining’s Mt Rawdon and Cracow gold mines – both of which are long-life, high-grade mines. Evolution is selling the Cracow mine to Aeris Resources’ (ASX: AIS).
The standout results from the maiden drill program at Red Mountain were:
• 4m @ 5.5g/t Au including 6m @ 12.3g/t Au from surface;
• 5m @ 3.5g/t Au including 2m @ 8.0g/t Au from 64m; and
• 12m @ 1.0g/t Au from 42m depth including 4m @ 2.1g/t Au from 50m, within a broader mineralised interval of 56m @ 0.4g/t Au from 6m.
“We are delighted to announce that high-grade near surface gold mineralisation has been intersected in the maiden drill program at Red Mountain,” Zenith managing director Mick Clifford said.
“The target generated by Zenith’s exploration team is panning out to have the hallmarks of a significant mineralised system and we are very excited about the project’s upside.”
The drill program is in line with the company’s wider gold strategy to focus on its 100%-owned projects. Zenith has field work scheduled over the coming months at its the Flanagans gold project in Queensland and Split Rocks lithium-cobalt-gold project in WA.
Magmatic’s focus has been on exploring the Northern Molong belt in NSW for the next world-class gold-copper porphyry discovery.
The 14-hole RC program at Lady Ilse, which kicked off this week, will test zones of strong chargeability, conductivity anomalism and the interpreted core of the Lady Ilse porphyry system.
Magmatic’s Wellington North project covers a majority of the northern Molong Belt, which surrounds Alkane Resources’ Boda porphyry gold-copper discovery and is about 110km north and along strike to Newcrests’ Cadia Valley world-class gold-copper porphyry deposits.
“We’re on the margin of a significant gold‐copper porphyry system,” Magmatic managing director Peter Durden said.
“It’s a very exciting time for the Magmatic team as we ramp up our drilling activity.”
You can catch Magmatic Resources (ASX: MAG), Core Lithium (ASX: CXO) and White Rock Minerals (ASX: WRM) at the Mines and Money APAC Online Connect conference next week.
Click on the names below to see each company’s virtual booths and view available times to meet with the teams.