Zenith Minerals : Second New QLD Gold Project

12th April 2022

Corporate Details

Zenith Minerals Limited (ASX:ZNC)

ABN: 96 119 397 938

Equities (31st Dec 21) A$9.1M Debt Nil

*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. ($0.39)	A$134M
Cash (31st Dec 21)	A$4.4M*

SECOND NEW QLD GOLD PROJECT

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

Zenith's reconnaissance sampling has confirmed the presence of high-grade gold at surface. Of a total of 49 rock samples, 9 returned results greater than 1 g/t Au with a peak value of 23.3 g/t Au.

An initial soil sampling program over the central portion of the project area has defined several strong gold anomalies. Three of which are associated with and extending from historic gold mines, with strike lengths of up to 600m, and another three anomalies away from known gold workings. Peak soil result of 1.1 g/t Au.

Government mining records confirm historic gold mining in the 1880s up to 1915. Many of these old workings were covered by small mining leases in the 1970s and into the 1980s.

No on-ground exploration has been reported for over 25 years.

Mineralisation is hosted within sheared granitic rocks. All gold mineralised rock specimens (> 1 g/t Au) are strongly altered with no or very rare quartz veining. Host rocks, alteration, paucity of quartz veining and trace elements indicate potential for an intrusion related gold system (IRGS).

To allow the Zenith team to focus on activities to generate Battery Minerals projects, ZNC is planning to demerge the non-Battery Minerals projects, including Auburn 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 ZNC, shareholders, 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. Further updates and information on the Demerger will be provided by Zenith in due course. (ASX Release 13-Jan-22).

Commenting on the Auburn gold project, Managing Director Mick Clifford said: "I am pleased to report on this second new Queensland gold project that the Company has recently secured through its ongoing project generation activities.

Initial on-ground exploration sampling by the Zenith team has confirmed the presence of widespread gold mineralisation at surface in association with historic gold workings, confirming its exploration potential. Follow-up exploration is clearly warranted in this project area that has had no previous systematic assessment."

Background on the Auburn Gold Project

The Company's new Auburn and existing Red Mountain and Privateer 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. The Auburn and Conners Arcs are host to severaleconomic gold and base metal deposits including the Cracow epithermal gold deposit to the northwest and Mt Rawdon gold mine to the north east (Figure 1).

The Auburn tenement covers the eastern margin of an area historically known for epithermal gold and silver. Government Mining Journals (April 15, 1914, and May 1915) record gold mineralisation in the Cadarga Creek area, which runs through the tenement and was worked in the 1880s up to 1915. Many of these old workings were covered by small mining leases in the 1970s and into the 1980s (Figure 2).

Figure 1: Auburn Project Location Map

Previous work has consisted of reconnaissance sampling and mapping around the old prospects by Newmont in the early 1980s, Kirk River in the mid-1980s and Compass Resources in the mid-1990s. In addition, some poorly documented historic trench sampling and drill hole summaries provide encouragement but cannot be relied upon. No exploration has been conducted for over 25 years.

Figure 2: Auburn Geological Map and Gold Occurrences

First pass reconnaissance mapping and rock sampling along with systematic soil sampling over the central portion of the project area, by Zenith, has returned encouraging results.

Zenith sampling has confirmed the presence of high-grade gold at surface. Of a total of 49 rock samples, 9 returned results greater than 1 g/t Au, with results including: 3.0g/t Au, 4.4 g/t Au, 6.2 g/t Au, 6.2 g/t Au and a peak value of 23.3 g/t Au (Figure 3 & Table 1). All gold mineralised rock specimens (> 1 g/t Au) are strongly altered and are associated with ferruginous boxwork after sulphides with no or very rare quartz veining (Figure 4). Anomalous trace elements associated with the gold mineralised samples include: Ag, As, Bi, Pb and Te consistent with an intrusion related gold system (IRGS).

Soil sampling has defined several gold anomalous zones with a strong gold in soil anomaly (10ppb Au contour, peak value 1.1 g/t Au) extending from the high-grade rock sampling areas over a strike length of 600 metres (Figure 2) associated with the Blast and New Camp historic gold workings.

Figure 3: Auburn Gold Prospects - Significant Rock and Soil Geochemical Results (Gold Soil Anomalies - pink polygons over coloured image of Arsenic with black polygon outline of Bismuth anomaly)

Sample	Easting	Northing	Au (g/t)
ARK001	303546	7150079	0.11
ARK002	303552	7150083	0.02
ARK003	303557	7150087	0.05
ARK004	303499	7150117	0.54
ARK005	303477	7150114	0.01
ARK006	303484	7150145	0.01
ARK007	303449	7150195	1.17
ARK008	303835	7150695	0.03
ARK009	303825	7150686	0.01
ARK010	303882	7150692	6.21
ARK011	303817	7150688	6.18
ARK012	303776	7150711	0.93
ARK013	303777	7150720	0.04
ARK014	303776	7150705	0.04
ARK015	303779	7150769	4.36
ARK016	303766	7150770	3.01
ARK017	303757	7150767	0.05
ARK018	304161	7150448	0.7
ARK019	304170	7150454	0.98

Rock Sample ARK010 (6.21 g/t Au)

Rock Sample ARK021 (23.3g/t Au)

Figure 4: Auburn - Example of Gold Mineralised Rock Samples

The Auburn tenement geology consists of late Permian Cadarga Creek Granodiorite (part of the Rawbelle Batholith). In the Auburn River area, the Delubra Quartz Gabbro and the Cadarga Creek Granodiorite crop out as north-east-trending ridges. The Delubra Quartz Gabbro is intruded by, or is comagmatic with, granitoids of the Cadarga Creek Granodiorite.

Breccias and network veining mark the eastern contact of the gabbro with the Cadarga Creek Granodiorite. Major east and south-east-trending structures and dykes are important influences in localising gold mineralisation in these units.

Table 1: Auburn Rock Chip Results