The Zenith Minerals Ltd (ASX: ZNC) share price is on an absolute tear. At the time of writing, the lithium miner is trading for 20 cents per share. It is down on today's intraday (and 1-year) high of 21.5 cents a share — which marked a 66% gain — but is still 50% higher than the previous day's close.
The positive price movement comes as the company announced "high-grade" zinc-lead discoveries at one of its mining projects.
By contrast, the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.19%.
Let's take a closer look at today's announcement and how it might be affecting the Zenith share price.
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What's up with the Zenith share price?
In conjunction with Rumble Resources Ltd (ASX: RTR), Zenith announced promising zinc-lead results from two drill holes at the Chinook Prospect joint-venture in Western Australia. Zenith has a 25% stake at the site.
The two drill hole results are as follows:
- a 34m wide ore that is 4.22% zinc and lead from 66m depth, including 17m that is 6.5% zinc and lead.
- a 21m wide ore that is 4.3% zinc and lead from 61m depth.
From these results, Zenith stated the site has the potential to be at "the upper end of the existing Exploration Target."
The Rumble Resources and Zenith share price surges look to be a vote of confidence by investors in this latest announcement.
Management commentary
Speaking on today's news, Zenith Chair Peter Bird said:
These initial results from the Earaheedy JV Property appear to be exceptional, as announced by Joint Venture Partner Rumble Resources it is the intention that Rumble will aggressively progress the exploration activities on the property in an attempt to validate the Exploration Target estimate. Although at an early stage of investigation we are beginning to demonstrate that this project could be of very significant scale.
He added:
We will continue to be very supportive of these activities. Zenith retains a 25% Free Carried Interest in the Joint Venture to the point of Bankable Feasibility completion. In addition, both parties hold a Pre-Emptive Right over the counterparty's respective equity stakes. Earaheedy is shaping up as a very exciting proposition for both parties.
Zenith share price snapshot
Over the past 12 months, the Zenith share price has increased by 300%. Today's closing price is the highest the company's shares have achieved since July 2018.
Zenith has a market capitalisation of $50 million.
