Zenith Minerals (ASX: ZNC) has provided its quarterly update, for the three months to September.
Split Rocks Gold & Lithium Project – WA
Zenith’s initial 16-hole drill program of approximately 2000m successfully confirmed bedrock gold targets beneath the currently operating Dulcie Heap Leach Gold Project (DHLGO) – held by a 3rd party. Better results include: 10m @ 2.20 g/t Au from 60m including 6m @ 3.32 g/t Au, 5m @ 3.23 g/t Au from 8m plus 4m @ 1.48 g/t Au from 44m and 1m @ 3.79 g/t Au from 124m, 5m @ 2.04 g/t Au from 34m including 2m @ 3.94 g/t Au and 2m @ 2.56 g/t Au from 32m (ZNC ASX Release 28th Oct 19). Two new Exploration Licences successfully secured taking total area of the Split Rocks project to over 650 sqkm).
Laramie REE Project – Wyoming USA
New 100% owned Laramie REE Project secured in Wyoming USA. Initial sampling and mapping by Zenith in two key areas 3km apart has returned up to 0.54% TREO, with the 23 highest results from 29 samples taken from the two key areas held under application by Zenith averaging 0.34% TREO (ZNC ASX Release 17th Oct 2019). Follow-up sampling results awaited.
American Lithium JV
Maiden Inferred Mineral Resource estimate of 42.6 million tonnes @ 818 ppm Li (lithium) and 3.3% K (potassium) using a lower cut-off grade of 300 ppm Li for the near surface lithium clay mineralisation at the Burro Creek East area in Arizona USA (as announced to ASX on 12th Aug 2019).
Other Australian Projects
Geophysical survey results received post the end of the quarter for the Red Mountain Project provide strong support for gold target. IP chargeability anomaly occurs adjacent to zones of high-grade gold in surface results, including: high-grade gold in soils up to 2210 ppb Au (2.2g/t Au), 1600ppb Au, 550ppb Au and 320ppb Au with supporting gold and silver in rock sample results up to 2.01 g/t Au and 114 g/t Ag, that are associated with a felsic volcanic breccia complex.
Rumble Resources (ASX:RTR) elected to exercise the Earaheedy Zinc project option. Zenith received an additional $350,000 in RTR shares and RTR will free carry Zenith’s 25% interest to the completion of a bankable feasibility study (BFS).
Recent drilling by Rumble identified a previously unrecognised sandstone unit which hosts the higher-grade Zn-Pb mineralisation (results including 7m @ 4.85% Zn + Pb). Wide spaced drilling is planned in Dec 2019 targeting where the Zn-Pb mineralised sandstone sub-basins come to the surface under cover – over 13kms of strike.
Subsequent to the end of the quarter RTX commenced a drill program at the Vivash Iron project in the Pilbara WA.
On the 28th October 2019 the Company announced a capital raising by way of an Entitlement Offer to existing shareholders. The capital raising will be undertaken through a non-renounceable entitlement offer of one (1) new fully paid ordinary share for every six (6) existing fully paid ordinary shares held by Eligible Shareholders as at 5.00pm (AEDT) on Thursday, 31 October 2019.
The new shares will be issued at a price of A$0.055 per share, representing a discount of 13% to the last closing price on Wednesday, 23 October 2019 and a discount of 17% to the 30-day volume weighted average price of Zenith ordinary shares.