Zenith Minerals (ASX: ZNC) has struck some seriously impressive gold in its latest drilling at the Red Mountain Project in Queensland. They hit a massive 139 metres at 1.05 grams per tonne of gold, packed with several high-grade spots that could really boost this explorer’s future.
This big find is a game-changer for the company, which is worth about $14.8 million. They’ve been steadily working on their intrusion-related gold system known as IRGS at Red Mountain ever since they picked up the project.
Red Mountain Shaping Up as a Big Deal
Tucked away in central Queensland, right between two working mines, Aeris Resources’ Cracow and Evolution Mining’s Mt Rawdon, Red Mountain is in prime gold country with good roads and facilities already in place.
Red Mountain Project Location
The recent drilling has shown that the gold keeps going deep underground, and experts think it could be part of a huge system. Earlier shallow drills turned up some crackers, like:
- 13 metres at 8.0 g/t gold right from the surface, including 6 metres at 16.7 g/t
- 15 metres at 3.5 g/t gold from 57 metres down, with 2 metres at 22.4 g/t
- A bunch of other hits showing the gold’s still open deeper and along the sides
That new 139-metre stretch at 1.05 g/t really stretches out the known gold and backs up the team’s ideas about a solid deposit.
Gold Market’s Looking Good for Explorers
This win comes at a great time for gold, with prices jumping 35% over the past year, hitting new highs over $5,400 an ounce, based on government figures.
Spending on gold exploration shot up 36.1% in the June quarter, according to the Australian Bureau of Statistics, and gold now makes up 40% of all exploration work across the country. With prices around $5,500 an ounce, it’s making things profitable for big miners and up-and-comers alike.
Experts reckon gold will keep shining through 2025, thanks to central banks snapping it up, world worries, and rising costs. J.P. Morgan Research thinks it could hit $6,200 an ounce by mid-2026.
Drilling Backs Up the Geological Model
The drilling at Red Mountain has carefully checked the team’s theory about an intrusion-related gold system. These kinds of deposits, like the ones at Mt Wright and Mt Rawdon, often hold heaps of gold at grades that pay off.
Tests on the ore show the gold’s easy to extract – it’s free-milling and not tricky, with average recoveries of 83.3%. For samples low in arsenic, it jumps to 95.8%, which points to cheap processing down the track.
The Queensland Government chipped in with a grant from their Collaborative Exploration Initiative, showing they’re keen to see the project move forward.
Prime Spot with Ready Infrastructure
Red Mountain’s in a sweet location in known gold territory, with sealed roads, power, and mills you can truck ore to. It’s about 120 kilometres west of Bundaberg, in the same belt as some major mines.
The Auburn Arc area has been churning out gold for years, with recent wins from Evolution Mining and Aeris Resources ramping up their output.
Shares Jump on the News
Zenith Minerals’ shares have had a strong run in 2025, as investors get excited about their mix of projects. The stock’s at $0.115, with a market cap around $31.76 million.
Zenith Minerals Share Price
They keep costs low at head office, so more money goes straight into exploring.
Zenith Minerals’ Portfolio Features More Than Just Red Mountain
Red Mountain’s the star right now, but Zenith has a bunch of other projects across different metals and states. Their Dulcie Far North in Western Australia has 302,000 ounces of gold resources and is still going strong.
They’ve got lithium spots at Split Rocks and Waratah Well for the battery boom, plus a 25% free ride in Rumble Resources’ Earaheedy zinc project for some base metal action.
What’s Next in Exploration
Diamond drilling is ongoing at Red Mountain with a few rigs chasing more gold extensions. More results from this round should drop through the September quarter.
They’ve raised cash recently to keep things rolling across all projects. The bosses plan to push the best ones towards proper resource studies.
The Red Mountain Project is nicely placed between established gold mines in Queensland’s proven mining region.
Also Read: US Tariffs Effect on Australian Economy Threatens Generations Ahead
Gold Market is Buzzing
World demand for gold is staying strong, with central banks buying over 1,000 tonnes a year for the last three years. Tensions around the globe and inflation fears are keeping it as a safe bet.
Aussie gold miners are cashing in on high prices, hitting record profits. For companies like Zenith, it means better project numbers and easier funding to keep exploring.
With solid drilling hits, a great location, and a hot market, Zenith Minerals is set up well to keep advancing Red Mountain. The gold system’s wide open in several directions, offering big potential for investors who back gold hunts in good times like these.
Prices over $5,500 an ounce make development look tasty, and their spread of assets gives options through ups and downs in commodities.
