Zenith Minerals (ASX:ZNC) reported an active December quarter, with drilling success at the Kavaklitepe Gold Project in Turkey as well as progression of the Company’s lithium portfolio in Australia, the US and Mexico. Better gold results included 16m at 4.7g/t Au and 18m @ 1.7g/t Au. For teh lithium portfolio, the Company is assessing funding options, including potentially spinning out into a separate vehicle.
HIGHLIGHTS
Exploration and Development
Kavaklitepe Gold Project Turkey
- Successful completion of the maiden short-hole diamond drilling program using a mobile rig at the Kavaklitepe gold project in western Turkey, with sulphide-related gold mineralisation being discovered at both the Discovery Zone and Kuzey Zone, and with near surface high-grade oxide and transition gold mineralisation also intersected at Kuzey.
- Drilling completed this year at the Kuzey Zone provided an initial wide spaced test of only 360m of the 900m by 250m gold-in-soil anomaly target. Drill results reported (5th October 2016) include: hole KT-09; an overall 67.7m gold mineralised zone from 46.2 to end of hole at 113.9m (true width unknown) including several zones of higher grade: 18.7m @ 1.7 g/t Au from 50.2m, and 16.0m @ 4.7 g/t Au from 82.1m, (including 8.0 m @ 7.1 g/t Au) with the drill hole ending in mineralisation at 113.9m. Gold mineralisation at the Kuzey Zone remains open to the north and east and is open along strike to the south.
- Near surface oxide and transition gold mineralisation is interpreted to occur as a flat lying zone extending over the full 360m length that has been drill tested to date. Better intersections that are considered close to true width of high-grade, near surface, gold mineralisation (previously reported) include: 9.0m @ 5.2 g/t Au from surface, and 7.8m @ 7.3 g/t Au from 3.3m depth.
- Gold mineralisation was intersected at the Discovery Zone in a single drill hole test (KT-18A) over a 23.5m interval from 22.5m to 46.0m depth with results including: 9.4m @ 1.5 g/t Au and 3.5m @ 2.1 g/t Au (true width intervals). The near surface gold mineralisation dips to the northwest and is 60m down dip of previously reported continuous roadside surface sample results that include: 21.0m @ 2.7 g/t Au and 27.0m @ 1.4 g/t Au.
- Drilling at the Guney Zone intersected a wide zone (30.7 m) of silicified and altered breccia crosscutting a meta-siltstone rock sequence from 54.9m to 85.6m with associated higher concentrations of trace elements arsenic, antimony and silver more similar to those returning significant gold intersections at the Kuzey and Discovery zones.
- Kavaklitepe 2017 programs and budgets are currently being finalised.
Lithium Portfolio
- Project generation activities culminated in securing 100% interest in three new lithium brine projects in Nevada USA, (Spencer, Wilson Salt Flat) and Mexico (Zacatecas), as well as an exclusive option to earn 100% in the Burro Creek lithium clay project in Arizona USA, near the Company’s 100% owned San Domingo spodumene pegmatite project.
- Funding to rapidly advance the lithium projects via drilling in early 2017 is required and the Company is currently assessing various options (including funding internally, potential for spin-off into independent vehicle, or external funding through joint venture) for the financing of its American lithium projects.
KAVAKLITEPE GOLD PROJECT – TURKEY (Zenith 30%)
- Two coherent plus 800 metre long, high order gold in soil anomalies (+50 ppb), with peak soil sample values over 1 g/t gold;
- Continuous rock chip of 54.0 metres grading 3.33 g/t gold, including 21.5 metres grading 7.2 g/t gold within the northwest soil anomaly (Kuzey Zone);
- Continuous rock chip of 21 metres grading 2.67 g/t gold at the Discovery Zone, and 12 metres @ 2.5 g/t gold at the Guney Zone;
- Strong chargeable IP geophysical anomaly identified directly beneath high-grade surface rock chip samples (7.68, 22.7 g/t gold) and gold in soil (up to 6.05 g/t gold) at the Kuzey Zone;
- 2016 drill results include: 16m @ 4.7 g/t, 9m @ 5.2g/t and 7.8m @ 7.3g/t Au.
Activities During the Quarter
During the quarter the maiden short-hole diamond drilling program using a mobile rig was completed at the Kavaklitepe gold project in western Turkey. Zenith considers the program to have been successful with sulphiderelated gold mineralisation being discovered at both the Discovery Zone and Kuzey Zone, and with near surface highgrade oxide and transition gold mineralisation also intersected at Kuzey.
In summary a total of 2558.5m of drilling was completed in twenty-five short diamond drill holes KT-01 to KT-25, & KT- 06A at the three target zones: Kuzey, Discovery and Guney during the 2016 exploration campaign.
- Kuzey Zone 11 holes (KT-01 to KT-11, including KT-06A);
- Guney Zone 11 holes (KT-12 to KT-17 & KT-19 to KT-22 & KT-24 to KT-25) and
- Discovery Zone 2 holes (KT-18A and KT-23).
Discovery Zone
Gold mineralisation was intersected at the Discovery Zone in a single drill hole test (KT-18A) over a 23.5m interval from 22.5m to 46.0m depth with results including: 9.4m @ 1.5 g/t Au and 3.5m @ 2.1 g/t Au (true width intervals). The near surface gold mineralisation dips to the northwest and is 60m down dip of previously reported continuous roadside surface sample results that include: 21.0m @ 2.7 g/t Au and 27.0m @ 1.4 g/t Au (Figures 2 & 3). The roadside sampling was conducted as an initial test of the 400m long gold-in-soil anomaly at the Discovery Zone.
The new Discovery Zone gold mineralisation remains open to the northeast and southwest and is open down dip. A second drill hole (KT-23) has now been completed 275m southwest along strike where surface rock chip samples returned up to 2.4g/t Au, intersecting 1.3m @ 1.3 g/t Au within a 17.9m wide altered zone from 17.5m to 35.4m with associated anomalous silver, arsenic and antimony.
These new drill results at the Discovery Zone extend and support high-grade, near surface gold intersections previously reported over +360m strike at the Kuzey Zone located 1.3km to the northwest.
Drilling at the Guney Zone has been technically difficult with seven drill holes KT-12 to KT-17, KT-19 & KT-24 completed as a section across the central portion of the prospect. The drilling intersecting a thick, flat-lying, massive sequence of calc-silicate rocks which contained multiple underground cavities up to 4 metres deep that caused several holes to fail at shallow depths and provided locally only very poor diamond drill core sample recoveries. Hole KT-12 returned 1.2m @ 1.4g/t Au from 12.5m and 1.3m @ 0.6g/t Au from 17.2m before being abandoned in a cavity. The massive calc-silicate rock sequence is not considered a preferred host to gold mineralisation. In contrast drill hole KT-21 drilled on the northern part of the prospect (Figure 6) intersected a wide zone (30.7 m) of silicified and altered breccia crosscutting a meta-siltstone rock sequence from 54.9m to 85.6m with associated higher concentrations of trace elements arsenic, antimony and silver more similar to those returning significant gold intersections at the Kuzey and Discovery zones. Follow-up along strike of this zone will be a priority exploration target in 2017.
