Zenith Minerals Ltd (ASX:ZNC) has secured a new gold project, Jackadgery, in New South Wales under an options arrangement.
The project contains a walk-up drill target, which is highly complementary to Zenith’s existing gold exploration portfolio.
Historical surface trench sampling at Jackadgery returned mineralisation such as 160 metres at 1.2 g/t gold with higher grade intervals including 5 metres at 18 g/t gold and 5 metres at 7.1 g/t gold.
Zenith managing director Mick Clifford said: “Adding another advanced gold play to the project portfolio is a testament to the company’s project generation skills, providing investors with further first-rate gold exploration exposure in a region with the proven gold endowment.”
Drilling planned in last quarter of 2020
Zenith will seek the review of an existing drill permit for an initial fence of drill holes to effectively test beneath the wide zone of near-surface gold mineralisation outlined by historical backhoe trench and surface rock chip channel samples.
The company will be the first to test beneath the surface trench area with its maiden drill program, which is planned to start in the last quarter of 2020.
Under the option agreement, Zenith will make an option payment of $ 10,000 and is required to complete a minimum of 300 metres of drilling within 12 months and at its sole election, it can make a one-off cash payment of $100,000 to secure a 90% interest in the project.
After acquiring the 90% interest, Zenith will undertake a pre-feasibility study on the project.
Zenith continues to have an active project generation program to ensure it has a fertile pipeline of new gold and copper project opportunities.