Zenith Minerals (ASX: ZNC) has provided its annual report to shareholders for the financial year ended 30 June 2020.
In his letter to shareholders, company chair Rodney Joyce said:
The Company has worked hard in the past year to re-invigorate its exploration portfolio and refocus on gold and base metals as our core commodities. Challenging times with the COVID-19 pandemic restricting inter and intrastate movements have complicated our efforts to accelerate activity, however our exploration team deserve great credit for navigating their way through the border closures and maintaining almost constant (and successful) field activity in Western Australia and Queensland.
The highlight of the year was the discovery of potentially significant gold mineralisation at the Company’s 100% owned Red Mountain project in Queensland. Our maiden drill program late in the financial year returned several high-grade gold intersections, and aggressive follow up drilling has continued to suggest a notable greenfields discovery. At the 100% owned Develin Creek project, where we have a current JORC Mineral Resource of 2.57 million tonnes of massive copper-zinc-gold-silver sulphides, we have generated a new target for drilling, south of the known deposits. We also announced encouraging initial surface sampling from the new Flanagans gold-copper project, further enhancing our Queensland project pipeline.
The main focus of our exploration in Western Australia continued to be the 100% owned Split Rocks project, where Zenith holds a large prospective landholding in a known productive gold belt, with multi-million ounce deposits along strike, and close to the significant Earl Grey lithium pegmatite deposit.
Multiple drill programs completed by the Company during the year at Split Rocks returned numerous high-grade gold drill results beneath and along strike of historic workings and beneath the operating Dulcie gold heap leach mine, where Zenith holds subsurface rights.
Two phases of partner funded drilling at the Earaheedy zinc project in Western Australia reported several zones of higher grade zinc mineralisation, with further drilling scheduled for late 2020, and other activity funded by partners, including at the Kavaklitepe gold project in Turkey, is anticipated in coming months, as outlined in the Managing Director’s Review of Operations overleaf.
We continue to focus on maintaining a high level of targeted exploration, giving shareholders upside exposure to opportunities generated in-house in our chosen commodities, while protecting the Company’s tight capital structure, at times by attracting 3rd party funding. Post year end we announced the acquisition of another drill-ready gold project in NSW (Jackadgery) which further enhances our project book. We generated several other targets during the year that were on-sold to the benefit of shareholders (Wyoming Rare Earths and Fraser Range Nickel).
On behalf of the Board I again thank Mick Clifford and his small and hard-working management, technical and administrative team for their efforts.
In closing, I welcome Peter Bird to the Zenith Board and the Chairman’s role. Peter joined the Board in March 2020 and has been elected as my replacement as Chairman effective 30 September 2020. Peter brings great experience and technical, commercial and corporate skills and has significantly enhanced our Board capabilities.