Zenith Minerals : New QLD Gold Project

30th March 2022

Corporate Details

Zenith Minerals Limited (ASX:ZNC)

ABN: 96 119 397 938

*Excludes $6M placement to EVM (ASX Release 13-Jan-22)

Directors

Michael Clifford Managing Director Stan Macdonald Non-Exec Director Julian Goldsworthy Non-Exec Director Nicholas Ong Co Sec

Nick Bishop………..CFO

Major Shareholders (31st Dec 21)

Directors 3.4%

HSBC Custody Nom. 9.4%

Citicorp Nom 9.0%

BNP Paribas Nom 5.8%

Granich 3.7%

Our Vision

Zenith has a vision to maximise shareholder value through superior project generation and exploration activities.

Focus is on 100% owned Zenith projects, whilst partners progress multiple additional opportunities.

Contact Us

Level 2, 33 Ord Street WEST PERTH WA 6005 PO Box 1426

WEST PERTH WA 6872 Telephone: [phone] Email:[e-mail] Web:www.zenithminerals.com.au

Issued Shares	343.9M
Unlisted options	14.3M
Mkt. Cap. ($0.37)	A$127M
Cash (31st Dec 21)	A$4.4M*
Equities (31st Dec 21)	A$9.1M
Debt	Nil

NEW QLD GOLD PROJECT

Privateer gold project in Queensland secured via 100% owned exploration licence.

Zenith sampling has confirmed the presence of high-grade gold at surface, with rock samples returning up to 3.5 g/t Au and 2.5 g/t Ag associated with epithermal style quartz veining.

Limited sparse historic (30 years ago) shallow drilling returned very high-grade, near surface gold and silver results including:

• ▪ 0.5m @ 28.5 g/t Au and 35 g/t Ag from only 58m below surface that has never been followed up (diamond drill hole).

• ▪ 3m @ 2.6g/t Au from 38m downhole (percussion hole)

• ▪ 2m @ 1.0 g/t Au and 70.5 g/t Ag from 64m downhole

The geochemical association, host rocks and quartz vein textures at Privateer point towards a low-sulphidation epithermal gold style geological target with a well know analogue being the Cracow Gold Mine located some 70km to the west.

To allow the Zenith team to focus on EV-metal project generative activities, it is planned that the non-EV-metal projects, including base metals and gold assets (including Privateer) will be demerged into one or more new companies to be listed on ASX. Any such demerger will be subject to ZNC Board approval, tax advice favourable to the Company, shareholder, ASX, ASIC and other regulatory approvals. ZNC shareholders to benefit by way of an in-specie distribution of the shares in the new listed vehicle/s (ASX Release 13-Jan-22).

Further updates and information on the Demerger will be provided by Zenith in due course.

Commenting on the Privateer gold project, CEO Mick Clifford said: "Project generation is a core skill of the Company, and we are pleased to have added an additional gold - silver exploration property to our portfolio through a 100% owned exploration licence.

Drilling at Privateer over 30 years ago returned very high-grade gold and silver results including 0.5m @ 28.5 g/t Au and 35 g/t Ag from only 58m below surface that has never been followed up. The gold mineralisation style at Privateer appears to be a low-sulphidation epithermal with a well-known analogue being the Cracow Gold Mine located some 70 km to the west."

Background on the Privateer Gold Project

The Company's new Privateer and existing Red Mountain gold projects are located within the Auburn portion of the Connors-Auburn Arc, a tectonic unit which is part of the New England orogenic belt extending from Queensland into northern New South Wales (Figure 1).

The Auburn and Conners Arcs are host to several economic gold and base metal deposits including the Cracow epithermal gold deposit 70km to the west of Privateer.

Figure 1: Privateer Project Location Map

At the Privateer project, the geology is dominated by the Culcraigie Granite described as pink coarse-grained equigranular leucogranite. The Privateer and Waratah old workings and prospects are within this unit close to its contact with the overlying Mt Eagle Volcanics. The Privateer Prospect consists of several historic pits sunk on a brecciated chalcedonic quartz lode with rhyolite fragments. According to Open File Report CR20431, quartz veining is associated with rhyolitic quartz-feldspar porphyry dykes which intrude volcanic rocks of the Triassic Mt Eagle Volcanics. The veining is described as narrow, complex, multi-phase quartz veins with colloform chalcedonic quartz, pyritic massive replacement microcrystalline quartz and carbonate replacement quartz (Open File Report CR19273 McInnes, 1987). Clay alteration is associated with the quartz veining along with anomalous trace elements (As, Sb and Hg).

Rock chip samples of chalcedonic quartz by Zenith has confirmed the presence of high-grade gold and silver, with samples returning up to 3.5 g/t Au and 2.5 g/t Ag, whilst historic rock sampling returned up to 3.95 g/t Au, 29 g/t silver, 793 ppm arsenic, 99ppm antimony, and 0.82ppm mercury (Open File Report CR20431, Savoy 1989) - refer to Figure 2. In addition, historic soil sampling outlined an area of anomalous gold in soils (>20ppb Au) over a strike length of 500m.

Percussion drilling by Geopeko of 8 shallow holes in the 1980s under the old gold working and also up to 250m south, intersected thick, stacked, separate shallow (~30 degrees) west dipping quartz feldspar porphyries with intervening biotite granodiorite (Figure 2). Geopeko confirmed that the quartz veins are associated closely with these rhyolite and feldspar porphyry dykes and that the quartz lodes crosscut volcanic rocks of the Triassic Mt Eagle Volcanics. Weak to moderate clay alteration occurs in the main mineralised zone.

Figure 2: Privateer Gold Prospect - Significant Rock Chip and Historic Drilling Results

Drill results included:

• • PDH EP-S/4 from 64m, 2m at 1.2 g/t Au and 70.5 g/t Ag

• • PDH EP-S/7 from 38m, 3m @ 2.5g/t Au, from 45m, 3m @ 0.7g/t Au, from 54m, 1m @ 2.5 g/t Au

The hole was twinned by a diamond hole PDH EP-S8 which returned a narrow high-grade interval (Figure 3):

• • PDH EP-S8 returned 0.5m @ 28.5 g/t Au (repeat assay 26.8 g/t Au) and 35 g/t Ag from 58m below surface (60.5m downhole) within 0.85m @ 16.2 g/t Au and 23.1 g/t Ag from 60.5m within (Open File Report CR20431, Savory 1989)

Drill intercepts occur within broader mineralised zones (15-20m thick) that are strongly anomalous in gold (>0.1 g/t Au) and silver (>1 g/t Ag) that appear as flat lying to gently west dipping zones associated with feldspar porphyries in the north and subvertical zones in the south of the prospect area.

Figure 3: Privateer Gold Prospect - Cross Section

Table 1: Privateer Significant Zenith Rock Chip Results

Sample	Easting	Northing	Description	Au (g/t)	Ag (g/t)
PRK001	293334	7202163	Quartz feldspar dyke contact with fine grained mafic intrusive	1.1	5.3
PRK002	293406	7202409	Rhyolite dyke contact with quartz porphyry	-0.01	0.15
PRK003	293412	7202452	Quartz feldspar porphyry dyke	1.02	4.24
PRK004	293436	7202421	Quartz feldspar porphyry dyke	3.48	2.51
PRK005	293442	7202421	Quartz feldspar porphyry dyke	0.49	1.18
PRK006	293404	7202426	Rhyolite dyke	0.03	0.38
PRK007	293470	7202423	Quartz porphyry	1.7	2.14
PRK008	293476	7202419	Quartz contact with rhyolite	0.91	4.23
PRK009	295526	7203833	Volcanic breccia, tuff and ignimbrite clasts.	0.01	0.05
PRK010	293429	7202525	Rhyolite quartz contact	0.01	0.15
PRK011	293447	7202420	Quartz feldspar porphyry dyke	0.34	1.65

Hole	East	North	Dip	Depth (m)	Azimuth
PDH.EP-S/1	293422	7202492	-70	84	90
PDH.EP-S/2	293399	7202449	-70	102	90
PDH.EP-S/3	293421	7202447	-70	96	90
PDH.EP-S/4	293471	7202437	-70	96	90
PDH.EP-S/5	293424	7202393	-70	87	90
PDH.EP-S/6	293330	7202131	-70	89	90
PDH.EP-S/7	293335	7202081	-70	97	90
DDH.EP-S/8	293333	7202079	-72	70.4	98

Table 2: Privateer Significant Drill Results

Hole_ID	From (m)	To (m)	Width	Au (g/t)	Ag (g/t)
PDH.EP-S/1	17	18	1	0.7	-0.5
PDH.EP-S/2	19	20	1	0.7	4.5
PDH.EP-S/3	13	14	1	1.2	7
PDH.EP-S/4	0	1	1	2.8	0.5
PDH.EP-S/4	64	66	2	1.0	70.5
PDH.EP-S/7	38	41	3	2.6	3.5
PDH.EP-S/7	45	48	3	0.8	7.3
PDH.EP-S/7	54	55	1	2.6	13
DDH.EP-S/8	60.5	61.35	0.85	17.2	23.1
incl	60.5	61.0	0.50	28.5	35

Table 3: Privateer Drill Hole Collars

References:

Savoy 1989, QLD Department of Resources - Open File Report CR20431. AP 5366M Euroka Report for the year ended 9 May 1989.