Zenith Minerals (ASX: ZNC) has boosted its exposure in the prevailing strong gold market with the acquisition of the Privateer project in Queensland – as it reveals plans to spin-out all non-electric vehicle metals into a new listed vehicle.
The company has secured the exploration licence for the project where rock chip sampling has returned up to 3.5 grams per tonne gold and 2.5g/t silver.
Historical drilling on the ground has been limited and sparse with intercepts from more than 30 years ago uncovering 0.5m 28.5g/t gold and 35g/t silver from 58m.
Other results from the sparse drilling were 3m at 2.6g/t gold from 38m, and 2m at 1g/t gold and 70.5g/t silver from 64m.
Zenith chief executive officer Mick Clifford said these drill intercepts had never been followed up.
Proximity to economic deposits
Privateer is close to Zenith’s existing Red Mountain gold project, with both located within the Auburn portion of the Connors-Auburn Arc on the New England orogenic belt.
The region is home to the 8.5 million ounce Mt Morgan deposit, Aeris Resources’ (ASX: AIS) Cracow operation (2Moz) and Evolution Mining’s (ASX: EVN) Mt Rawdon mine (2.5Moz).
“The gold mineralisation style at Privateer appears to be a low-sulphidation epithermal with a well-known analogue being the Cracow gold mine located some 70km to the west,” Mr Clifford said.
Demerger of non-EV assets
Zenith followed up the Privateer acquisition announcement with news it plans to demerge its non-EV projects into one or more companies that will be listed on the ASX.
This will include Privateer, with the demerger to remain subject to board and regulatory approvals.
Zenith’s rationale behind the proposed spin-out of these projects is to focus on advancing its EV-metal assets.
The company is actively exploring for lithium at Split Rocks and Waratah Well under a recent joint venture with EV Metals Group.
Zenith’s other assets comprise a 25% stake in Earaheedy, which is held in joint venture with Rumble Resources (ASX: RTR).
Earaheedy is home to numerous zinc-lead discoveries in WA.
In Queensland, Zenith’s other project is Develin Creek. This asset is prospective for copper and zinc and has a resource of 2.57Mt at 1.76% copper, 2.01% zinc, 0.24g/t gold and 9.6g/t silver.
