Zenith Minerals Shares Soar 116% on Red Mountain Gold Breakthrough

Zenith Mineral Red Mountain Drilling Results Signal Potential High-Grade Gold System

Zenith Minerals (ASX: ZNC) delivered a market jolt this week, with shares opening 116 percent higher to 13 cents after releasing the first assays from its 2025 drilling campaign at the Red Mountain project in Queensland. The results point to both strong grades and scale potential, putting the site firmly on the radar as a possible economic gold discovery.

For investors, the excitement goes beyond a single announcement. The shift from early exploration toward a discovery scenario represents a major turning point, especially at a time when gold prices are climbing as investors seek safe havens. This combination of promising geology and supportive market conditions could make Red Mountain a story worth watching closely.

The question now is how far these results can carry Zenith Minerals and what they reveal about the company’s long-term growth potential. 

What are the Best Mining ASX Stocks to invest in right now?

Check our buy/sell tips

Red Mountain Gold Project Delivers Standout Drill Results

The Red Mountain gold project is located in Queensland’s Auburn Arch, a region well known for its rich mineral endowment. Since its discovery by Zenith Minerals in 2017, the project has delivered strong results across multiple exploration phases, reinforcing its potential as a cornerstone asset within the company’s gold portfolio. 

The project hosts both gold and silver mineralisation and is fully owned by Zenith, giving the company complete control over its development pathway. Red Mountain also benefits from established infrastructure and close proximity to other producing gold projects in the region, which could provide logistical advantages and cost efficiencies as operations advance.

High-Grade Gold Zones Position Red Mountain as a Key Discovery

The latest drilling at Red Mountain delivered several standout results across three key sites. The first intercept returned 139.7 metres averaging 1.05 grams of gold per tonne, pointing to a broad zone of mineralisation.

 A second interval revealed 14.2 metres grading 4.62 grams per tonne, highlighting richer deposits, while a third zone produced 21.15 grams per tonne over 2.1 metres, an exceptionally high-grade result. Long intercepts with consistent grades are significant because they suggest the potential for a large deposit, while high-grade zones can materially improve project economics by lowering the cost of gold production.

For Zenith Minerals, these results mark an important milestone as the company advances its position as a multi-asset explorer with near-term catalysts. The Red Mountain assays strengthen its Queensland portfolio and align with a broader growth strategy focused on building a pipeline of gold discoveries. This strategy is underpinned by a solid balance sheet and supported by government co-funding for deeper drilling, which together provide a strong platform for continued exploration.