ZINC of Ireland NL

ZINC of Ireland NL: Mt Clere Drilling Campaign Gets Green Light to Target Untested Geophysical Anomaly

• ASX Code: ZMI
• Market Cap: $6.8M
• Shares on Issue (SOI): 567,010,693
• Cash: $1.98M (as of 31 December 2024)

ZINC of Ireland (ZMI) has achieved a significant milestone with the Department of Mines, Industry Regulation and Safety (DMIRS) approving the Program of Work for its Mt Clere Project. This regulatory clearance establishes the pathway for drilling at the Robin 21 anomaly, scheduled to commence in April.

The approved programme targets a massive 1km-wide geophysical anomaly characterised by strong magnetic (400nT) and gravity (~2mG) signatures. Despite its substantial size and intensity, this anomaly has remained completely untested by previous exploration campaigns.

"This approval represents the final regulatory step required to commence our drilling campaign at Mt Clere," said Peter Huljich, Non-Executive Chairman of ZMI. "Our team is now finalising contracts with drilling and earthmoving contractors, with mobilisation expected shortly."

Robin 21: A Rare Untapped Exploration Opportunity in Western Australia

The Robin 21 target presents an exceptionally rare opportunity in Western Australia's exploration landscape. Located within the Edmund Basin, this large-scale anomaly offers a compelling combination of attributes that make it particularly worthy of investigation:

• Strategic Location: Situated in a 75km² tenement area, 190km north-northwest of Meekatharra with accessible road infrastructure
• Significant Scale: The anomaly spans approximately 1km in width
• Strong Geophysical Signatures: Features robust magnetic (400nT) and gravity (~2mG) responses
• Completely Untested: Previous exploration by BHP in the 1990s terminated drilling at just 56m depth, failing to reach the target zone
• Proven Mineral Province: Located adjacent to the Mt Clere fault in a recognised base metal region

The company's strategic drilling plan involves a single diamond drill hole designed to penetrate to approximately 300m depth, targeting the heart of the Robin 21 anomaly. This approach offers a high-reward opportunity to validate a target with district-scale potential.

Understanding Geophysical Anomalies: Why They Matter to Investors

For investors new to resource exploration, understanding geophysical anomalies is crucial to appreciating the significance of ZMI's upcoming drilling programme.

A geophysical anomaly occurs when measured physical properties of the earth (such as magnetism or gravity) differ significantly from surrounding areas. These differences can indicate the presence of specific rock types or mineral deposits beneath the surface.

Geophysical surveys measure variations in the earth's natural physical fields. Two primary methods relevant to the Robin 21 target include:

1. Magnetic Surveys: These detect variations in the earth's magnetic field caused by different rock types. Magnetic minerals like magnetite create stronger magnetic responses (measured in nanoteslas or nT). Robin 21's 400nT anomaly represents a substantial magnetic response.

2. Gravity Surveys: These measure minute variations in gravitational pull caused by density differences in underlying rocks. Denser rocks (like those containing massive sulphides) create positive gravity anomalies (measured in milligals or mG). Robin 21's ~2mG gravity response indicates the presence of unusually dense material.

In Robin 21's case, the combined strong magnetic and gravity signatures are particularly interesting, as they can indicate the presence of dense, magnetic material consistent with massive sulphide systems or intrusive-hosted mineralisation—both potentially associated with valuable base metals.

The strength and size of Robin 21's geophysical response (400nT magnetic and ~2mG gravity) place it in a category of targets that would typically have been tested decades ago in Western Australia's extensively explored terrain. Finding such a significant untested anomaly represents a rare opportunity in modern exploration.

Technical Validation and Historical Context

ZMI's approach to Robin 21 benefits from both historical data and modern analytical techniques:

• Historical Exploration: BHP conducted exploration in the 1990s but terminated drilling at just 56m depth
• Modern Reprocessing: ZMI has reprocessed legacy data using advanced techniques
• Enhanced Targeting: Recent geophysical surveys have significantly improved understanding of the target
• Geological Parallels: The company's technical team has identified similarities between Mt Clere's geophysical signatures and known global base metal deposits

The target's location adjacent to the Mt Clere fault—a known conduit for mineralising fluids in the region—further enhances its prospectivity, positioning it within a recognised province for copper and other base metals.

Clear Execution Timeline and Next Steps

ZMI has outlined a straightforward path forward from regulatory approval to potential discovery:

1. Final preparations: Currently underway with contractor selection and logistical planning
2. Mobilisation: Drill rig and support equipment to be deployed to site imminently
3. Drilling commencement: Scheduled for April 2024
4. Results timeline: Assay results expected within 4-6 weeks of drilling completion

This timeline provides investors with clear milestones to monitor in the coming months, with the drilling programme representing a potentially transformative catalyst for the company.

Investment Thesis: Why Robin 21 Matters

ZMI's Mt Clere Project and specifically the Robin 21 anomaly represent a compelling investment proposition for several key reasons:

1. Statistical Rarity: Untested geophysical anomalies of this magnitude are increasingly uncommon in Western Australia's mature exploration landscape
2. Technical Validation: The target has been subjected to rigorous modern geophysical analysis and reprocessing
3. Strategic Approach: A single strategically placed drill hole provides cost-effective testing of a major target
4. Regional Context: Located in a proven base metal province near the significant Mt Clere fault
5. Favourable Economics: The project benefits from accessible infrastructure, reducing exploration costs

The primary value proposition lies in the asymmetric risk-reward profile—a single drill hole carries modest cost but offers significant discovery potential given the anomaly's size and characteristics.

Potential Mineralisation Styles at Robin 21

The geophysical signatures at Robin 21 suggest two primary mineralisation styles could be present:

1. SEDEX (Sedimentary Exhalative) Deposits: These form when metal-bearing hydrothermal fluids are discharged into a water body, typically resulting in stratiform lead-zinc-silver mineralisation. The Edmund Basin's geological setting shares characteristics with known SEDEX-hosting regions globally.

2. IOCG (Iron Oxide Copper Gold) Deposits: Characterised by iron oxide minerals with copper and gold, these deposits typically show strong magnetic and gravity responses similar to Robin 21's signatures. IOCG deposits can form major mining operations due to their substantial size and polymetallic nature.

The combination of both magnetic and gravity anomalies at Robin 21, with partial offsets in the modelled depths, may be consistent with zoned alteration or base metal mineralisation typical of these deposit styles.

Why Investors Should Follow ZINC of Ireland

ZMI presents a focused opportunity for investors seeking exposure to a high-impact exploration programme with several compelling attributes:

• Imminent Catalysts: With drilling set to commence in April and results expected within 4-6 weeks thereafter, investors have a clear timeline for potential value-driving news
• Substantial Target: The 1km-wide Robin 21 anomaly represents a target of sufficient scale to potentially host an economically significant deposit
• Strong Financial Position: With $1.98M cash as of December 2024, the company is well-funded to execute its planned drilling programme
• Experienced Leadership: Management has demonstrated methodical preparation and strategic targeting
• Regional Expertise: The company has built specific competence in the Edmund Basin geological setting

Mining exploration companies operating in resource-rich regions like Western Australia continue to attract investor attention, especially when targeting strategic minerals. As critical mineral strategies evolve globally, projects with potential for discovering base metals become increasingly significant in the investment landscape.

The company's focus on base metals aligns with growing market interest in materials essential for the clean energy transition. While some investors may be more familiar with lithium exploration projects or uranium mining developments, ZMI's focus on potential copper and zinc resources addresses equally critical supply chains for global electrification and infrastructure development.

Key Takeaway:
"ZINC of Ireland has positioned itself to test one of Western Australia's most compelling untested geophysical anomalies at Robin 21. With drilling commencing in April 2024, strong technical validation of the target, and full funding in place, investors have a clear timeline for potential discovery news in a proven base metal province."

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