KAVAKLITEPE GOLD PROJECT – TURKEY (Zenith 30%)u. 
  • Two coherent plus 800-metre-long, high order gold in soil anomalies (+50 ppb), with peak soil sample values over 1 g/t gold;
  • Kuzey Zone Drill results include: 20m @ 15.6 g/t Au, 16m @ 4.7 g/t Au, 21m @ 3.29 g/t Au, 14m @ 6.09 g/t Au, 16m @ 4.7 g/t, 9m @ 5.2g/t and 7.8m @ 7.3g/t gold, and continuous surface rock chip results include: 54.0m @ 3.33 g/t gold, 10m @ 12.2 g/t Au; 44m @ 3.37 g/t Au, 15m @ 10.10 g/t Au and 6.5m @ 5.18 g/t Au;
  • Discovery Zone drill results include: KT- 42: 8.0m @ 0.74 g/t Au, KT-43: 8.0m @ 1.20 g/t Au and KT-44: 8.0m @ 1.26 g/t Au.

Exploration and evaluation of the Kavaklitepe gold project is managed by Teck Anadolu Madencilik Sanayi v. Ticaret A.S. (“Teck”), a Turkish affiliate of Teck Resources Limited through the Turkish joint venture company Kavak Madencilik A.S. partly owned by Zenith Minerals Limited.  As previously advised (ASX Release 23rd April 2019) Zenith elected not to contribute its share of joint venture funds towards this drill program.   The exact level of dilution will depend on final invoiced program costs, but it is estimated that Zenith’s share of the joint venture holding company is now approximately 25%.

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Kavaklitepe Kuzey Zone Drill Hole Locations, Gold Intersections & Location of Cross Sections (A-A’ & B-B’) – (Legend: 20m/15.6 is 20.0m @ 15.6 g/t Au)

Background

RC drilling in early 2019 was completed to determine the continuity, size and tenor of gold mineralisation intersected during the 2016 maiden short-hole diamond drilling program (KT-01 to KT-25) and the 2018 RC drill program (KTRC-26 to KTRC-40) at the Kavaklitepe gold project in western Turkey.  Zenith considers the 2016 & 2018 programs to have been successful 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.

Kuzey Zone

Drilling completed in 2016 (11 holes (KT-01 to KT-11, including KT-06A) provided an initial wide spaced test of only 360m of the 900m by 250m wide Kuzey Zone gold-in-soil anomaly target.  Near surface oxide and transition gold mineralisation is interpreted to occur as a flat lying zone extending over the full 900m length of the prospect.

Better intersections from the 2016 drill program that are considered close to true width of high-grade, near surface, gold mineralisation (previously reported) include: KT-01; 3.5m @ 5.5 g/t Au from surface, KT-02; 9.0m @ 5.2 g/t Au from surface, KT-03; 7.8m @ 7.3 g/t Au from 3.3m depth, KT-05; 1.2m @ 10.8 g/t Au from 14.7m (as part of a 16.9m mineralised zone with lower core recovery), KT-06; 6.3m @ 4.3 g/t Au from surface, KT-06A ; 6.3m @ 3.6 g/t Au from surface and KT-07 ; 12.9m @ 1.2 g/t Au from surface.

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Kavaklitepe Kuzey Zone Preliminary Cross Section A-A’

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Kavaklitepe Kuzey Zone Preliminary Cross Section B-B’

Deeper drill results previously reported (5th October 2016) from the Kuzey Zone 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,  16.0m @ 4.7 g/t Au from 82.1m, (including 8.0 m @ 7.1 g/t Au) and 8.8m @ 1.0 g/t Au with the drill hole ending in mineralisation at 113.9m and hole KT-08; an overall 76.0m gold mineralised zone from 12.5m to 88.5m including: 13.4m @ 1.0 g/t Au from 16.1m, 1.5m @ 1.3 g/t Au from 33.0m, 2.0m @ 3.0 g/t Au from 48.8m, and 9.5m @ 1.2 g/t Au from 56.8m.

RC drill testing in late 2018 (KTRC-26 to KTRC-40) returned thick high-grade gold intersections at the Kuzey zone including: 21m @ 3.29 g/t Au within 26m @ 2.89 g/t, 14m @ 6.09 g/t Au and 8m @ 2.29 g/t Au (ZNC ASX Release 11th December 2018 and 23rd April 2019).

In addition, continuous rock chip sampling at the Kuzey Prospect has previously returned wide zones of high-grade gold mineralisation at surface, including: 54.0m @ 3.33 g/t Au (including 21.5m @ 7.2 g/t Au) and 44.0m @ 3.37 g/t Au (ZNC ASX Release 23rd April 2019).

A 3700m, 2019 RC drill program operated and funded by JV partner Teck Anadolu Madencilik Sanayi v. Ticaret A.S. (“Teck”) a Turkish subsidiary of Teck Resources Limited, commenced in late-April 2019 and was designed to follow-up on results from the 2016 & 2018 drilling and surface sampling programs.

Initial 4 metre composite assay results from follow-up drill testing were received in mid-2019 (refer to Zenith ASX release dated 20th June 2019).

Based on preliminary 4 metre composite results the drill program successfully defined gold mineralisation over the length of the 900 metre long Kuzey Prospect (north prospect) with indications of more than one high-grade shoot.  Kuzey infill results from drill holes KT-51 to KT-78) include: KT-77:  20.0m @ 15.60 g/t Au, including 12.0m @ 24.67 g/t Au, KT-78: 16.0m @ 4.72 g/t Au, including 8.0m @ 7.99 g/t Au, KT-64:  44.0m @ 1.90 g/t Au, including 8.0m @ 5.50 g/t Au, KT-56: 24.0m @ 2.14 g/t Au; including 4.0m @ 5.45 g/t Au, and KT-53: 36.0m @ 2.06g/t Au, including 8.0m @ 4.14 g/t Au. These drill intersections are interpreted to be close to true thickness of the gold mineralisation.  Continuous rock chip sampling along drill access tracks at Kuzey returned 16.0m @ 4.6 g/t Au and 4.0m @ 3.73 g/t Au.  Kuzey is one of three gold mineralised zones within the Kavaklitepe Project, the others being Discovery and Guney.

Discovery and Guney Zones

In 2016 drilling at the Discovery Zone (2 holes (KT-18A and KT-23) intersected gold mineralisation 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.  The roadside sampling was conducted as an initial test of the 400m long gold-in-soil anomaly at the Discovery Zone.

Drilling at the Guney Zone (2016 – 11 holes (KT-12 to KT-17 & KT-19 to KT-22 & KT-24 to KT-25) has been technically difficult, 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 @ 1.4 g/t Au from 12.5m and 1.3m @ 0.6 g/t Au from 17.2m before being abandoned in a cavity and  drill hole KT-21 drilled on the northern part of the prospect 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 RC Drilling at the Guney Prospect in mid-2019 (drill holes KT-47 to KT-50) returned a maximum of 8.0m @ 0.28g/t Au from surface in drill hole KT-49.

RC drilling undertaken in 2019 at the Discovery and Guney Zones was completed to follow-up on the previous drill results as well as test bedrock targets where rock traverse sampling along drill access tracks in 2018 returned gold results, including: 8m @ 1.77 g/t Au, 8m @ 1.74 g/t Au, including 4m @ 3.17 g/t Au (ZNC ASX release 23rd April 2019), supported by new sampling completed in 2019 detailed in this release, including: 8.0m @ 1.28 g/t Au, 4.0m @ 3.17 g/t Au and 4.0m @ 1.81 g/t Au.

Drilling at the Discovery Prospect in mid-2019 (drill holes KT-41 to KT-46) shows consistent, shallow west dipping gold mineralisation over a strike length of 600 metres.  Discovery zone drill results include: KT- 42: 8.0m @ 0.74 g/t Au, KT-43: 8.0m @ 1.20 g/t Au and KT-44: 8.0m @ 1.26 g/t Au.  These drill intersections are also interpreted to be close to true thickness of the gold mineralisation.  In addition, further continuous rock chip sampling along drill access tracks at Discovery returned 8.0m @ 1.28 g/t Au, 4.0m @ 3.17 g/t Au and 4.0m @ 1.81 g/t Au.

Gold mineralisation at Kavaklitepe is hosted in fault zone breccias and shear zones that are both subparallel to and cross-cut foliation in the host shales and schists in association with arsenic and antimony.

Preliminary scoping level metallurgical test program results received for one composite fresh rock sample, grading 3.40 g/t Au taken from the Kuzey Zone indicates gold is refractory.  Diagnostic leach testing indicates approximately 19.2% of the gold is free milling, combined with oxidising via roasting yielded overall gold extraction of 70.1%.  Additional leach testing of fine ground samples would be necessary to determine the liberation characteristics and the amount of extractable gold in the fine fraction of the sample.

Individual 1 metre samples of the 4-metre composite gold mineralised intervals from the mid-2019 RC drill program have not yet been provided to Zenith.

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Plan Showing Kavaklitepe Project Gold Geochemistry & Location of Drill Holes in Discovery Zone with Significant Drill Results