Zenith buys Queensland deposits

Perth-based explorer Zenith Minerals has acquired 51 per cent interest in Fitzroy Resources’ Rookwood project, with an option to purchase the remainder.

The terms of the deal included $200,000 in cash and 500,000 Zenith shares, unchanged today at 10 cents each at the time of writing.

The option for the remaining 49 per cent equity would be for $300,000 cash and 3 million ordinary shares within 24 months.

The project, also known as Develin Creek, contains copper, zinc, gold and silver deposits and is located 70 kilometres north-west of Rockhampton in Queensland.

Both zinc and copper performed strongly in the June quarter, with zinc up more than 10 per cent and copper nearly 6 per cent. 

Zenith chairman Mike Joyce believed the project had potential.

“We believe the area is highly prospective for further discoveries … there has only been limited systematic exploration away from the main resource areas,” Mr Joyce said.

“The acquisition fits Zenith’s strategy of adding great projects to the company’s portfolio at the bottom of the market,” he added.

Zenith had traded as Zinc Co Australia until November 2010.

Fitzroy has opted to refocus its business on coking coal interests in the US, after purchasing two properties in West Virginia.