The Zenith Minerals Ltd (ASX: ZNC) share price is charging higher today on the back of promising initial reconnaissance sampling results at one of its Australian gold projects.
Zenith Minerals is a micro-cap ASX miner focused on advancing its portfolio of lithium, gold and base metals projects across Australia, the US, and Turkey.
What did Zenith Minerals announce?
This morning, Zenith announced that initial reconnaissance sampling has confirmed high-grade gold, silver and copper at surface at two prospects within its wholly-owned Flanagans gold project in Queensland.
Rock sample results included:
- Gold to 5.3 grams per tonne (g/t) gold, silver to 100 g/t silver and copper to 8.0% copper at the Flanagans prospect; and
- Gold to 3.4 g/t gold, silver to 273 g/t silver and copper to 13.9% copper at the nearby Great Blackall copper prospect.
According to today’s release, surface sampling confirms the historically reported local high tenor of gold, silver and copper mineralisation at both the Flanagans and Great Blackall prospects. Zenith believes these results endorse the requirement for further exploration activity.
The Flanagans project is located within approximately 100 kilometres of operating gold mines at Cracow and Mount Rawdon, and approximately 70 kilometres northeast of Zenith’s wholly-owned Red Mountain gold project.
Just last week, Zenith reported results from the maiden reverse circulation drilling program at Red Mountain. According to the miner, the program returned “highly encouraging near surface high-grade gold results”, which sent the Zenith Minerals share price rocketing 40% on the day.
Commenting on today’s update, chief executive Mick Clifford said:
“These are very early stage soil and rock-based results at the Flanagans Project. We are however encouraged by them particularly given that we were following up on some historical positive third-party results.”
The company noted that further work, including additional sampling, geological mapping and possible geophysical surveys, is required to determine the significance of surface geochemical samples at both prospects. Follow up field work is set to commence next week.
At the time of writing, the Zenith Minerals share price has jumped 9.52% to 11.5 cents. With this rise, the company’s market capitalisation currently stands at around $28 million.
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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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