Zenith Minerals Limited (ASX:ZNC) has announced the successful acquisition of a Western Australian government Exploration Incentive Scheme (EIS) grant for its Waratah Well Lithium Project.
The grant, valued at up to $85,000, will co-fund exploration drilling at the company’s wholly-owned project located 20 kilometres northwest of Yalgoo, Western Australia.
The EIS grant will cover up to 50 per cent of direct drilling costs, providing a significant boost to Zenith’s exploration efforts.
The company is required to complete the drilling program by November 30, 2025, as per the grant conditions.
Recent geological work at the Waratah Well Lithium Project has yielded promising results:
- Rock chip sampling and geological analysis have improved the overall understanding of key lithological contacts controlling lithium mineralisation.
- Previous drilling programs confirmed the presence of petalite, a valuable lithium-bearing mineral, within a large pegmatite system.
- The project is situated in an underexplored area known for high-grade lithium potential.
Zenith has already secured the necessary approvals for the upcoming drilling program:
- An approved Programme of Works (POW) is in place.
- All required heritage surveys have been completed.
The company is now poised to commence drilling, pending final Board approval.
Andrew Smith, Managing Director of Zenith Minerals, emphasised the significance of the EIS grant and the Waratah Well project, stating: “The successful EIS co-funding for Waratah Well is a testament to the project’s potential and the Western Australian government’s commitment to promoting lithium exploration and extraction.
“This lithium project continues to deliver exciting results, and we are confident it will create substantial value alongside our gold assets.”
While Zenith maintains its core focus on advancing its gold projects, the company recognises the substantial potential within its lithium portfolio.
The Waratah Well Lithium Project is considered an integral part of Zenith’s broader strategy to drive both its gold and lithium projects forward.
This development aligns with the growing demand for critical minerals, particularly lithium, which is essential for the global energy transition.
The EIS grant not only provides financial support but also validates the project’s potential, potentially attracting further investor interest in Zenith Minerals’ diversified portfolio.
As the company moves forward with its exploration plans at Waratah Well, the mining industry will be watching closely to see if this underexplored area can deliver on its promise of high-grade lithium resources.