Western Australia's gold sector is heating up as Zenith Minerals delivers promising results from its Consolidated Dulcie gold project, confirming the scale and continuity needed to underpin a maiden resource estimate. The company's latest assays from a 12,621-metre reverse circulation program across the six-kilometre Dulcie shear corridor have bolstered confidence in the project's potential.
Drill Results Underpin Exploration Target
Management reports that the final drill assays align with the previously flagged exploration target of 10 to 24 million tonnes at 0.9 to 1.1 grams per tonne gold, translating to 300,000 to 800,000 ounces. When combined with the existing inferred resource of 302,000 ounces grading 1.15 grams per tonne at Dulcie Far North, the broader project is poised to establish a significant gold inventory in the infrastructure-rich Southern Cross region.
High-Grade Hits and Broad Mineralisation
Notable intercepts from the latest drilling include 11 metres at 3.53 grams per tonne gold from 66 metres, featuring a high-grade section of 6 metres at 6.21 grams per tonne. Another standout was 3 metres at 7.4 grams per tonne from 71 metres. These results complement January's headline-grabbing hit of 3 metres at 22.67 grams per tonne gold, including a sizzling 1 metre at 56.76 grams per tonne from 101 metres.
While these high-grade spikes capture attention, the broader story lies in the consistent mineralisation surrounding them. Multiple holes returned intercepts exceeding 10 metres around the 1 gram per tonne mark, indicating geometry and grade suitable for open-pit mining scenarios. Drilling outside the original target envelope has also identified additional lode positions and extensions, suggesting further growth potential.
Path to Development and Cashflow
Zenith is advancing toward a maiden JORC-compliant mineral resource estimate for the Dulcie corridor, targeted for late February. This update will integrate the company's drilling with validated historical data, converting a meaningful portion of the exploration target into formal resources.
The project's development optionality is enhanced by its location on granted mining leases with sealed-road access, power, and water. Early-stage feasibility studies are already underway, examining staged open-pit development and low-capital expenditure processing routes such as ore sales or toll treatment.
Dulcie's proximity to operating processing hubs, including the Marvel Loch Processing Plant about 40 kilometres away and the Edna May Gold Mine, provides viable treatment options if the resource expands and metallurgy proves favourable. Once the maiden resource is released, Zenith plans immediate follow-up drilling in mid-March to gather structural, geotechnical, and metallurgical data for mine design.
Broader Strategy: Red Mountain and Auburn Projects
While Dulcie focuses on near-term cashflow, Zenith's Red Mountain gold project in Queensland represents a longer-term opportunity. Deep diamond drilling has confirmed a large, vertically extensive intrusion-related gold system extending beyond 530 metres vertical depth, remaining open at depth and laterally. Highlights include 325 metres at 0.56 grams per tonne gold and 349.95 metres at 0.47 grams per tonne, with internal higher-grade zones.
Metallurgical testwork indicates much of the gold is free-milling and non-refractory, with average recoveries of 83.3 percent via conventional cyanide leaching. The company's Auburn project, also in Queensland, shows promise with historical workings and recent soil sampling defining gold anomalies up to 600 metres in strike length.
Lithium Interests and Market Context
Zenith maintains a lithium interest at its Rio deposit in Western Australia, hosting an inferred resource of 11.9 million tonnes at 0.72 percent lithium oxide. However, the current strategy prioritises gold, with Dulcie positioned for quick cashflow, Red Mountain as a potential company-maker, and Auburn offering exploration upside.
With the gold price surging, toll-treating opportunities are gaining traction among ASX-listed companies. Dulcie's existing resource and infrastructure advantages position it as a compelling candidate for similar strategies, reinforcing its early cashflow potential.
If the upcoming resource estimate meets high expectations, Zenith could emerge with one of the more attractive near-term development plays in the Southern Cross gold region, marking a significant step in Western Australia's mining landscape.
