ZEUS Resources Ltd
Zeus Resources Moves Into Mauritania's Copper Belt With the Diaguili Acquisition
Zeus Resources (ASX:ZEU) has entered into a definitive agreement to acquire up to 100% of the Diaguili copper-gold project in southern Mauritania, a drill-ready target sitting within one of West Africa's established copper-gold belts. The ZEUS Resources Diaguili copper gold project acquisition in Mauritania arrives as copper trades at historically elevated levels, with COMEX copper quoted at approximately US$6.22 per pound as at 17 July 2026, and LME three-month copper reaching a record of approximately US$14,528 per tonne in January 2026.
The acquisition is structured as a staged share sale agreement, with total consideration of US$2.0 million split equally between cash and Zeus shares, payable across four tranches over 24 months. To fund the acquisition and initial work programme, Zeus has secured firm commitments for a $2,000,000 placement at $0.006 per share, including a $90,000 director commitment.
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What Is the Diaguili Project and Why Does It Stand Out?
The Diaguili copper-gold project is located in the Guidimaka region of southern Mauritania, approximately 750 km south-east of Nouakchott and 36 km from the regional centre of Selibaby. The project sits within the Mauritanides orogenic belt, the same geological corridor hosting First Quantum Minerals' operating Guelb Moghrein copper-gold mine.
Mineralisation at Diaguili outcrops along two low hills, Colline Nord and Colline Sud, each approximately 300-400 m long, with surface copper expressions of malachite and chrysocolla visible at outcrop. Furthermore, the mineralised system has a documented 1 km strike length, with copper intersections recorded at both ends of this trend.
Key attributes of the project, as outlined in the announcement, include:
- Fully permitted to drill, with exploration permit 2475B2 in good standing
- 49 historical drill holes on record, the great majority terminated within 100 m of surface
- Mineralisation reported as remaining open at depth and along strike on all reported sections
- A discrete airborne VTEM electromagnetic conductor identified in 2008 persists across all reported time channels beneath the historically drilled area, and has not been effectively tested by prior drilling
- Location in a jurisdiction with an established mining industry and operating precedent from major miners including First Quantum and Kinross Gold
Historical Drilling: Shallow, High-Grade, and Unfinished
A key aspect of the ZEUS Resources Diaguili copper gold project acquisition in Mauritania concerns what historical drilling has revealed and what it has left untested. Drilling by BRGM in the 1970s returned a series of copper intersections. These results were previously reported to ASX by Gryphon Minerals Limited (ASX:GRY) on 12 December 2014. These are historical exploration results that have not been independently verified by Zeus. Original drill chips, core and assay certificates are no longer available, and these results have not been reported in accordance with the JORC Code 2012.
| Hole | Intersection | Grade | Notable |
|---|---|---|---|
| F12 | 22.25 m @ 2.10% Cu from 48 m | incl. 11.25 m @ 3.36% Cu | Hole ended in mineralisation at 70.25 m |
| SDG-2 | 12.7 m @ 2.94% Cu from 60 m | incl. 7.9 m @ 4.40% Cu | Three separate Cu intervals returned |
| F19 | 35 m @ 1.44% Cu from 1 m | incl. 20 m @ 2.10% Cu | Mineralisation from surface |
| F07 | 33 m @ 1.43% Cu from surface | incl. 21 m @ 2.02% Cu | Surface-to-depth continuity |
| SDG-7 | 6 m @ 2.83% Cu & 1.4 g/t Au from 106.7 m | Ended in mineralisation at depth |
All results are historical and subject to the cautionary statement in the announcement. Reported intersections are downhole lengths; true widths are not known.
The pattern across these holes suggests the deepest diamond holes, SDG-2 and SDG-7, returned some of the stronger grades at depths that shallower percussion drilling never reached. Consequently, hole F12 was reportedly stopped in mineralisation due to equipment problems rather than the copper running out.
Historical rock chip samples from outcropping mineralisation, which are selective by nature and not necessarily representative of average grades, included results of up to 15% Cu with 30 g/t Ag and 1.44 g/t Au (BRGM, Colline Nord) and 3.69% Cu with 0.11 g/t Au (BHP Minerals, Colline Nord).
The Untested Conductor: A Geophysical Target Beneath the Drilled Zone
One of the notable elements of the ZEUS Resources Diaguili copper gold project acquisition in Mauritania concerns a geophysical anomaly that has never been fully drill-tested. In 2008, Shield Mining Limited flew a helicopter-borne VTEM survey over the permit area. VTEM stands for Versatile Time-domain Electromagnetic, an airborne survey method used to detect conductive bodies, including sulphide mineralisation, at depth. The survey identified a discrete conductor spatially coincident with the Diaguili mineralisation.
Unlike other anomalies in the survey area, which weaken with increasing channel number at greater depths, the Diaguili conductor persists across all five reported time channels, suggesting it continues to depth below the historically drilled zone. In addition, the conductor's position shifts systematically between time channels, which prior interpretation has described as a steep, sigmoidal conductor — a geometry considered more consistent with a structurally controlled mineralised body than a simple planar feature.
Zeus has commissioned reprocessing and 3D inversion of the raw 2008 VTEM data by an independent geophysical consultancy to resolve the conductor's geometry and define drill targets. Results are not yet available.
"Important note on the VTEM data: The geophysical material held by Zeus was obtained from its Mauritanian counterparty rather than the survey contractor and has not been independently authenticated. Zeus does not hold the full channel suite. The interpretation presented is preliminary and subject to the outcome of the commissioned reprocessing, and the depth of investigation of individual channels has not been established."
Shield Mining commenced drilling to test the anomaly in 2010 but suspended operations due to equipment problems and the onset of the wet season, subsequently redirecting exploration efforts elsewhere. Gryphon Minerals, which acquired Shield in 2010, undertook only desktop and geochemical work due to budget constraints and security issues at the time.
Understanding IOCG Mineralisation: A Beginner's Guide
What Is IOCG?
IOCG stands for Iron Oxide Copper-Gold, a class of mineral deposit characterised by copper and gold mineralisation associated with iron oxide minerals, typically magnetite or haematite, often related to large-scale hydrothermal systems.
The style is interpreted by previous workers as potentially relevant at Diaguili based on features including widespread magnetite, hydrothermal silicification, and tremolite-actinolite veinlets comparable to those described at the nearby Guelb Moghrein mine. However, the deposit model at Diaguili remains unconfirmed, and Zeus has acknowledged that further structural mapping and drilling are required to test this interpretation.
Why Does It Matter to Investors?
IOCG systems can host large, high-grade copper-gold deposits in certain settings. The presence of geological features comparable to a nearby operating mine in the same belt provides a basis for exploration targeting, though it does not confirm that Diaguili will develop into a comparable deposit.
| Term | Definition |
|---|---|
| VTEM | Versatile Time-domain Electromagnetic, an airborne geophysical survey method used to detect conductive bodies at depth |
| RC drilling | Reverse Circulation, a drilling method returning rock chips to surface for sampling |
| Diamond drilling | Core drilling that recovers intact rock cylinders for detailed analysis |
| IOCG | Iron Oxide Copper-Gold, a deposit style characterised by Cu-Au mineralisation with iron oxide minerals |
| JORC Code 2012 | The Australasian Code governing how exploration results are disclosed on the ASX |
| VWAP | Volume Weighted Average Price, used to calculate consideration shares issued at each acquisition tranche |
The Acquisition Structure: Staged, Capital-Efficient, and Aligned
Zeus has structured the Diaguili acquisition to manage risk while preserving capital. The staged payment schedule allows the company to acquire majority control before committing full consideration, with subsequent tranches tied to 12-month intervals.
| Stage | Cumulative Interest | Cash (US$) | Zeus Shares (US$) | Stage Total (US$) |
|---|---|---|---|---|
| Exclusivity fee (paid June 2026) | 50,000 | 50,000 | ||
| First Completion | 51% | 350,000 | 400,000 | 750,000 |
| Tranche 2 (12 months) | 70% | 200,000 | 200,000 | 400,000 |
| Tranche 3 (18 months) | 90% | 200,000 | 200,000 | 400,000 |
| Tranche 4 (24 months) | 100% | 200,000 | 200,000 | 400,000 |
| Total | 100% | 1,000,000 | 1,000,000 | 2,000,000 |
The US$50,000 exclusivity fee paid in June 2026 is credited against the cash payable at First Completion.
The consideration shares issued at each tranche will be priced by reference to the 10-day VWAP of Zeus shares immediately prior to each issue date, with issuance subject to shareholder approval. First Completion remains conditional on satisfactory completion of legal, technical, financial, environmental and title due diligence, together with requisite approvals under the Mauritanian Mining Code and Mauritanian company law.
Capital Raising: Funded for the First Phase
To finance the acquisition and proposed work programme, Zeus has secured firm commitments for a $2,000,000 placement at $0.006 per share, lead managed by GBA Capital Pty Ltd. One free attaching listed option (ASX:ZEUO, exercise price $0.02, expiring 12 December 2027) will be issued for every two placement shares.
The raise is structured in two tranches:
- Tranche 1: 107,321,507 shares raising approximately $643,929, issued under existing placement capacity with no shareholder approval required
- Tranche 2: 226,011,826 shares raising approximately $1,356,071, subject to shareholder approval at a general meeting
Directors have committed $90,000 as part of Tranche 2.
| Event | Indicative Date |
|---|---|
| Announcement of acquisition and placement | 23 July 2026 |
| Settlement of Tranche 1 | 30 July 2026 |
| Issue of Tranche 1 shares | 31 July 2026 |
| Despatch of notice of meeting | 31 July 2026 |
| General meeting | 28 August 2026 |
| Settlement and issue of Tranche 2 shares and options | 4 September 2026 |
Dates are indicative only and subject to change.
Proposed Work Programme: What Happens Next?
Subject to completing the acquisition, funding, and seasonal access constraints — field work is not practicable between late June and October due to the wet season — Zeus has outlined the following staged work programme:
- 3D geophysical modelling: Reprocessing and 3D inversion of the 2008 VTEM data, currently underway, to resolve the geometry of the conductor and define drill targets
- Confirmatory RC and diamond drilling: Targeting historically mineralised zones on the F7, F8, F12 and SDG-2 profiles to verify historical results in the absence of surviving core and chip archives
- Depth and strike extension drilling: Testing the geophysical conductor below the historically drilled zone and along strike
- Geological and structural mapping: Ground geophysical survey, trenching, and mapping to refine the deposit model
- Cover drilling: Air core drilling and geochemical sampling beneath cover across the broader permit area
The indicative scope includes approximately 3,000 m of RC drilling and 500 m of diamond drilling.
Investment Thesis: Why Diaguili Deserves Attention
Several factors combine in the ZEUS Resources Diaguili copper gold project acquisition in Mauritania as a development for Zeus shareholders to consider.
Geological Setting With Established Precedent
The Mauritanides orogenic belt hosts the operating Guelb Moghrein copper-gold mine, demonstrating the belt's copper-gold endowment. Diaguili sits within the same regional geological framework.
Shallow Drilling, Open System
Of the 49 historical holes, the great majority were terminated within 100 m of surface. The system is reported as remaining open at depth and along strike. The strongest diamond drill intercepts — SDG-2 at 2.94% Cu from 60 m and SDG-7 at 2.83% Cu from 106.7 m — were among the deepest holes drilled, and both ended in mineralisation.
An Untested Geophysical Target
The VTEM conductor persisting to depth below the historical drilling represents a target that has not been systematically drilled. Shield Mining's 2010 attempt to test it was abandoned due to equipment failure, not a negative result.
Capital-Efficient Acquisition Structure
Total consideration of US$2.0 million over 24 months, with majority control of 51% secured at First Completion for US$750,000, limits upfront capital commitment while preserving optionality.
Copper Market Context
Copper has traded at historically elevated levels in 2026, with LME prices reaching record highs. Copper is designated a critical mineral in Australia and appears on the critical and strategic raw materials lists of the European Union and the United States. However, the relationship between commodity prices and exploration company valuations is not direct or guaranteed, and commodity prices remain volatile.
Important caveat for investors: The historical exploration results underpinning the Diaguili opportunity have not been independently verified by Zeus, have not been reported in accordance with the JORC Code 2012, and original drill chips, core and assay certificates are no longer available. Confirmatory drilling forms a key element of the proposed work programme, and it is possible that confidence in these results could be reduced following further evaluation. No Mineral Resource or Ore Reserve has been defined for the project.
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Why Investors Should Keep Watching Zeus Resources
Zeus Resources describes itself as a mineral exploration company focused on early-stage, high-grade critical mineral assets in under-explored jurisdictions. The Diaguili acquisition aligns with that mandate: a historically drilled copper-gold project in a proven copper belt, with a geophysical target at depth that has not been properly tested, acquired at a staged cost of US$2.0 million with majority control achievable at First Completion.
Near-term catalysts identified in the announcement include:
- Completion of 3D VTEM reprocessing and drill target definition
- Satisfaction of First Completion conditions, with a due diligence deadline of 7 August 2026, subject to an EIA extension
- Shareholder approval at the general meeting on 28 August 2026 for Tranche 2 shares and options
- Commencement of RC and diamond drilling in the upcoming dry season
"Zeus Resources has moved decisively to acquire a drill-ready copper-gold project in a belt with operating mine precedent, at a staged cost that preserves capital discipline. With a geophysical conductor at depth never properly tested by prior drilling, confirmatory and extensional drilling in the upcoming dry season represents a genuine value-inflection opportunity for the project. Investors with an appetite for early-stage copper exploration may wish to monitor progress as Zeus advances toward First Completion and its inaugural drill programme at Diaguili."
Ready to Track Zeus Resources' First Drill Programme at Diaguili?
With majority control of the Diaguili copper-gold project achievable at First Completion, a persistent geophysical conductor never properly tested by prior drilling, and an inaugural RC and diamond drill programme targeting historically mineralised zones in the upcoming dry season, Zeus Resources (ASX:ZEU) represents an early-stage copper-gold exploration opportunity worth watching closely. To learn more about the company, the Diaguili acquisition, and upcoming catalysts, visit the official Zeus Resources website at zeusresources.com.
