Red Mountain Gold-Silver Project QLD (ZNC 100%)

Maiden 10 RC hole drill program completed in May 2020 at the 100% owned Red Mountain project has returned highly encouraging near surface high-grade gold results (Figure 2), including:

  • 14m @ 5.5 g/t Au incl 6m @ 12.3 g/t Au from surface
  • 5m @ 3.5 g/t Au incl 2m @ 8.0 g/t Au from 64 m depth
  • 12m @ 1.0 g/t Au from 42m depth incl 4m @ 2.1 g/t Au from 50 m depth, within broader mineralised interval of 56m @ 0.4 g/t Au from 6m depth.

Drilling to date tests only ~250m of strike of a 1200m long high-order gold anomaly with surface soil values including: 2.2g/t Au, 1.6 g/t Au, 0.56g/t Au and 0.33 g/t Au and gold in rocks to 2.0 g/t Au & 114 g/t Ag.  A substantial follow-up drill campaign is planned to commence in July.

Gold mineralisation at Red Mountain is considered by Zenith to be analogous to known large scale commercial gold deposits in Queensland.  Evidence includes a zoned system with geochemistry like that documented at third party owned Queensland gold mines such as Mt Wright and the nearby Mount Rawdon Gold Mine.

The maiden drill program was designed to test several different geological units and IP geophysical responses.  Key points from this drill program include:

  • Gold mineralisation occurs in sericite altered, pyritic and quartz veined granodiorite, and dolerite host rocks on the western margin of the newly recognised felsic volcanic breccia complex.
  • Gold mineralisation locally occurs coincident with IP geophysical chargeability highs providing Zenith with a tool to guide future follow-up drilling. IP chargeability anomaly extends for ~1500m around the volcanic breccia pipe margin.

The Red Mountain project is situated within ~100km of operating gold mines at Cracow and Mount Rawdon (Figure 1).

A substantial follow-up drill program is planned to commence in mid-July 2020.

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Figure 1: Red Mountain Project – Location Map

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Figure 2: Red Mountain Plan with Significant Drill Results