ZENITH MINERALS LIMITED - ASX: ZNC

The data on Australian Shares.com is intended as a guide only and is compiled from information in the public domain. Data on this website should not be used to make an investment or trading decision.

Description

Zenith Minerals Limited is a Perth based company focused on increasing shareholder value by the identification, exploration and development of base, industrial and precious metal deposits, principally in Australia. Zenith Minerals Limited listed on the Australian Securities Exchange (ASX) in May 2007 (ASX Code ZNC) under the name Zinc Co Australia Limited.

Zenith Minerals Limited recently announced the discovery of significant magnetite iron at the Mount Alexander prospect and high grade manganese in the Earaheedy Basin, both in Western Australia.Zenith Minerals Limited continues to explore for base and precious metals on its Conquistador/Snake Well and Cardinal's Projects.

The management and board of Zenith Minerals Limited have extensive experience in exploration and development of base metal deposits.

Earaheedy

Zenith Minerals' 100% owned Earaheedy zinc project covers much of the southwestern margin of the mid Proterozoic Earaheedy Basin in Western Australia, and includes most of the known zones of carbonate-hosted lead-zinc mineralisation in the area. Broadly spaced drilling has defined several prospects containing oxidised and primary Zn-Pb mineralisation (zinc dominant), most of which are confined to a single, laterally continuous dolomite horizon over 30 kilometres strike. These discoveries, together with the discovery of dolomite-hosted lead oxide reserves at the operating Magellan mine in outliers of the Earaheedy Basin near Wiluna, suggest a potential major new base metals district.

The Earaheedy Basin has, on its southern and western margins, a recently recognised platform carbonate succession of approximately 500 metres total thickness (Yelma Formation). Zinc dominant base metals mineralisation, dominantly sphalerite with some galena, is hosted by the laminar stromatolitic Navajoh Dolomite sub-unit. In some drill-hole intersections the entire width (up to 98m) of this sub-unit is mineralised. The basin is cut by a number of major long-lived fault zones, particularly the Mt Lockeridge Fault, that are spatially related to the carbonate hosted base metals mineralisation, and may also be prospective 'feeder' structures for sedex style mineralisation within the shale-dominated upper stratigraphic units.

First pass reverse circulation drilling has been completed at 5-10km spacing and infill diamond and RC drilling of a few established prospects has been completed down to an approximate 1km x 1km pattern (about one third of these drill-holes have failed to test the Navajoh Dolomite adequately due to poor siting or drilling difficulties). The established prospects held by Zinc Co at 'Navajoh', 'Magazine' and 'Chinook' typically have drill-hole intersections of the order of >50m @ >0.5% Zn+Pb, with higher grade intervals including ‘Navajoh’, an intersection of 7.3m @ 6.12%Zn, 0.77%Pb (including 3.3 metres @ 11.2% zinc, and 0.93% lead) is untested for 500 metres to 1 kilometre in all directions. A step out hole located 1.1 kilometres to the north-east returned 6m @ 3.9%Zn, 0.39%Pb, 2.5ppmAg, and a further 16m @ 1.0%Zn, 0.12%Pb. At ‘Magazine’ there are no follow up holes within a 1 kilometre radius of a discovery intersection of 11m @ 2.66%Zn, 0.84%Pb, 4.4 ppm Ag (including 2 metres @ 8.2% zinc and 2.8% lead). At ‘Chinook’ intersections including 6 metres @ 3.63% lead +zinc, and 1metre @ 6.18% zinc+lead have been returned.

Conquistador

The Conquistador zinc project is located in the Archaean Tallering greenstone belt in the Western Murchison Province 450 kilometres north of Perth in Western Australia, and forms part of the Snake Well gold project, owned 100% by Giralia Resources NL. Zenith Minerals Ltd can earn up to 75% interest in the Conquistador project, with Giralia retaining gold exploration rights.

Possible volcanic hosted massive sulphide ("VHMS") style zinc mineralisation at the Conquistador prospect, is located 10 kilometres along strike from the A-Zone (Carlinga Well) deposit, a gold resource with unusual copper lead zinc and silver credits hosted by a felsic sequence in the north of the greenstone belt at Snake Well. The rocks in the Conquistador prospect area are predominantly quartz sericite schists after clastic and felsic volcanic sediments and felsic lavas.

Exploration results to date have highlighted the prospectivity of the felsic succession at Conquistador for VHMS style Zn-Cu-Pb-Ag mineralisation. Observed associations include: silification and potassic, carbonate and alumina alteration; sulfide-rich assemblages (eg. stringer and semi-massive intersections of pyrite, ± sphalerite, chalcopyrite and galena, locally abundant quartz-carbonate veins and multi-element signatures including Au, Zn, Ag, Cu, Pb, As and Sn).

The Conquistador Zn anomaly occurs discontinuously over 4.5km strike length. Anomalous Zn encloses coincident Pb, Ag and Au anomalies with patchy anomalous Cu. The highest base metal and silver assays from RAB/air core drilling were 3m @ 3.68% Zn, 0.58% Cu, 0.49% Pb and 173 g/t Ag.

Mount Alexander

Zenith Minerals Limited holds rights to all minerals other than tungsten and molybdenum in the Mt Alexander prospect, located 15 kilometres south of the Nanutarra Roadhouse on the Northwest Coastal Highway, around 370 kilometres north of Carnarvon.

In the vicinity of Mt Alexander, a sequence of schist, amphibolite, banded iron formation, dolomite, marble and skarn, quartzite and black shale of the Lower Proterozoic Gascoyne Block, extensively intruded by acid intrusive phases, dolerite dykes and quartz veins. 13 shallow RC drill holes drilled in the early 1980s testing beneath a siliceous gossan outcrop with disseminated galena ('Cyprus gossan') returned intersections including; 8 metres @ 2.4% Zn, 0.95% Pb and 10 g/t silver.

Soil sampling over the entire 15 kilometres of strike of the folded dolomite/BIF sequence and defined two significant areas of lead soil anomalism, including a major anomaly coinciding with the 'Cyrus' gossan area. Surface rock chip sampling over the main siliceous gossan returned 42m @ 1.36% Pb, 1.08% Zn, 17.2 ppm Ag. Interestingly, the peak soil values occur in an approximately 200m long zone east of the eastern-most drill hole, and remain untested by drilling. A second anomaly was defined at the 'galena-cave'-'doser-cut' area, where patchy lead anomalism over 1500m strike coincides with intermittent exposures of the target dolomitic shale unit with known galena occurrences. Rock chip sampling of two galena showings returned 0.3m @ 62% Pb, 0.31% Zn, 440 ppm Ag, and a further 4m @ 3.15% Pb, 0.92% Zn, 29 ppm Ag at 'Galena Cave' and 2m @ 62% Pb, 0.32% Zn, 420 ppm Ag and a further 10m @ 204 ppm Pb, 0.47% Zn at the 'dozer-cut' prospect. Two drill holes returned thin, sub-economic intersections - MADD 4 "Galena cave' 3.1m @ 0.11% Pb, 1.6% Zn incl. 0.15m @ 10.4 Zn, and MADD3 "dozer-cut' 0.3m @ 0.19% Pb, 0.11% Zn.

Cardinals

The Cardinals zinc gossan is located approximately 130 kilometres south-south-east of Port Hedland in Western Australia, and covers potential strike extensions to the host rocks of CBH Resources Ltd's Panorama-Sulphur Springs base metals project, which is slated for commencement of construction of an open pit development in 2007. Zenith Minerals Ltd can earn up to 75% interest in the Cardinals project, with Giralia retaining nickel exploration rights.

At the Cardinals prospect ferruginous gossans with malachite and azurite occur as lenses in unaltered agglomerate rhyolite tuff and basic schists adjacent to a narrow chert horizon. The prospective acid volcanic units vary in thickness up to 200 metres near Cardinals gossan, where coarse agglomerate probably indicates proximity to a volcanic centre. To the south the prospective horizon is masked by Tertiary gravel outwash, while to the north the upper part of the acid tuff horizon is dissected by a serpentinised pyroxenite intrusion.

Rock samples up to 22% Zn, 7.0% Cu, 8.0% Pb, 115 g/t Au and 0.96 g/t Au; 10.7% Zn, 10.4% Cu; and 9.1% Zn, 3.2% Cu and 2.4% Pb are reported from the Cardinals gossan. Another gossan outcrop, the Aloha gossan, in the south-eastern part of the tenement returned up to 16% Zn and 32% Cu from rock sampling.

Reinterpretation of the previous drilling shows that the massive sulphides at Cardinals are probably located in the east limb and keel of a shallowly south-plunging synform. Judging by the extent of rodding lineations in surface outcrops, the massive sulphide body is likely to be an elongate cigar-shaped plunging shoot. The single hole tests on sections 11000N (XD 67) and 11100N (XD 66) are unlikely to have satisfactorily tested a body of this shape. Reinterpretation of 1979 SIROTEM geophysical data highlights strong EM anomalies extending south from the Cardinals gossan with depth to top of the source estimated at no greater than 40 metres suggesting that the 3 holes drilled by in 1981 were probably targeted too deep to test the observed conductors. Mapped shallow plunging lineations suggest that the conductive body, which is less than 40 metres below surface could represent a south plunging, cigar-shaped massive sulphide pod.

Further drilling is planned at the Cardinals gossan, particularly to the south and immediately beneath hole XM 4, and along the EM conductor axis. The Aloha gossan also warrants assessment in detail.

Mine For

zinc, copper, lead, gold, silver, manganese

Location of operation(s)

Western Australia

Address

Level 3 , 33 Ord Street
WEST PERTH, WA, AUSTRALIA

Phone

(08) 9226 1110

Email

Website

http://www.zenithminerals.com.au/

Last Updated

19/5/2011