The Zenith Minerals Ltd (ASX: ZNC) share price was a standout performer on the market today after the company revealed strong drilling results at its Red Mountain gold project.
Zenith Minerals shares closed 40.24% higher at 11.5 cents after rallying as much as 58.54% in early trade.
Zenith Minerals is a micro-cap ASX miner focused on advancing its portfolio of lithium, gold and base metals projects. Including today's gains, Zenith has a market capitalisation of around $28 million.
Why the Zenith Minerals share price surged today
This morning, Zenith reported results from the maiden 10-hole reverse circulation drill program completed at its wholly-owned Red Mountain project. The project is located in Queensland, within 100 kilometres of operating gold mines at Cracow and Mount Rawdon.
The maiden drill program at Red Mountain is part of the company's strategy to focus on its wholly-owned projects in Australia. The program was designed to test several different geological units and induced polarisation geophysical responses.
According to today's release, the program has returned "highly encouraging near surface high-grade gold results", including:
- 14 metres at 5.5 grams per tonne (g/t) gold including 6 metres at 12.3 g/t gold from surface;
- 5 metres at 3.5 g/t gold including 2 metres at 8.0 g/t gold from 64 metres; and
- 12 metres at 1.0 g/t gold from 42 metres including 4 metres at 2.1 g/t gold from 50 metres.
Zenith views the initial drill program a success, with encouraging gold results returned from only a portion of a larger target area. The drilling completed to date tests around 250 metres of strike of a 1,200-metre-long, high-order gold surface anomaly.
Following these strong results, the company noted it has a follow-up drill campaign planned for July.
Commenting on today's update, managing director Michael Clifford said:
"We are delighted to announce that high-grade near surface gold mineralisation has been intersected in the maiden drill program at Red Mountain."
"The target generated by Zenith's exploration team is panning out to have the hallmarks of a significant mineralised system and we are very excited about the project's upside," he added.
