- Zenith Minerals (ZNC) progressed multiple drilling programs across its gold and copper projects in the June quarter
- A major zinc-lead discovery at the Earaheedy Project prompted a drilling program which doubled the mineralised footprint at the Chinook prospect
- Drilling was also carried out at the Red Mountain and Split Rocks gold projects, with the latter generating multiple targets
- ZNC is raising $6 million to fund drilling, with around 27.9 million shares to be issued at 21.5 cents per share to institutional and sophisticated investors
- Company shares are down 12 per cent to trade at 22 cents at 1:43 pm AEST
Zenith Minerals (ZNC) has recapped its activities over the June quarter and has also announced a $6 million capital raise.
In April, Zenith Minerals made a zinc-lead discovery at the Earaheedy Project in Western Australia. Following that, a phase one drilling program doubled the zinc mineralisation footprint at the Chinook prospect to more than three kilometres by 1.8 kilometres.
The company also progressed diamond drilling at its wholly owned Red Mountain Gold Project in Queensland.
In May, drilling returned promising gold results including two metres at 10.8 grams of gold per tonne (g/t), 1.3 metres at 5g/t gold and three metres 2.4g/t gold.
Drilling at Red Mountain is ongoing and the company expects the program will continue throughout the rest of the year.
Further, Zenith began a 100-hole aircore drilling program at its Split Rocks Gold Project in May. This recently completed program targeted five areas to test for new zones of mineralisation and to extend other zones that had been poorly defined.
Drilling proved to be successful as high-grade gold mineralisation was outlined at four out of five target areas.
The company is now undertaking a 150-hole infill and extensional program to follow up on newly defined targets and extend the outlined gold zones.
During the quarter, Zenith spent $1.38 million on operating activities which was mainly used to fund exploration work.
At the end of the quarter, Zenith had around $1.8 million and just 1.3 quarters of estimated funding left.
As a result, the materials stock recently launched a $6 million capital raise.
The company entered a trading halt on July 28 however there weren’t any details on the amount to be raised or for what the money would be used.
Zenith revealed the $6 million placement will fund a 40-hole drilling program at the Develin Creek Copper Project and push towards resource inventory at the Red Mountain and Split Rocks project.
Around 27.9 million shares will be issued at 21.5 cents per share which represents a 14 per cent discount to the last traded price on July 27.
Company shares were down 12 per cent to trade at 22 cents at 1:43 pm AEST.