Zenith Minerals (ASX:ZNC) is acquiring up to 100% interest of the Develin Creek Project in Queensland which includes three massive sulphide deposits with JORC resources of 1.76 million tonnes grading 1.7% copper, 2% zinc and 0.2g/t gold.
Drilling outside the existing Sulphide City resource has intersected up to 13.5 metres at 3.3% copper, 4% zinc and 0.4g/t gold, and there are numerous other geophysical and geochemical targets along 50 kilometres of host volcanic rocks.
Notably, VHMS style deposits like Develin Creek occur in clusters, and there has only been limited systematic exploration away from the main resource areas.
Downhole electromagnetic geophysical surveys have detected massive copper-zinc sulphide zones, and IP surveys show strong chargeability anomalies associated with stringer zone mineralisation beneath the massive sulphides.
Zenith is to purchase an initial 51% equity for $200,000 cash and 500,000 Zenith shares, with the option to purchase the remaining 49% equity for $300,000 cash and 3 million Zenith shares within 24 months.
Zenith’s technical team has already identified a number of brownfields resource extension targets as well as multiple regional targets in the existing datasets which Zenith plans to start evaluating immediately.
This acquisition fits Zenith’s strategy of adding quality projects to the company’s portfolio at bottom of the market prices.
The company is valued at $11 million and the acquisition of a prospective zinc-copper-silver project at a time when all three commodities are rising sharply should pique the market's interest.
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