Key Highlights

  • 20 of 24 holes at Dulcie Central returned gold above 0.3 g/t Au reporting cut-off, including 6m at 4.14 g/t Au from 123m in SRRC182
  • Existing JORC Inferred Mineral Resource of 675,000 oz gold across 21.3Mt at 1.0 g/t Au remains unchanged
  • Forrestania Resources declared its offer unconditional on 22 October 2026 and holds 61.4% of Zenith shares
  • Programme of Work applications being prepared for approximately 850 RC holes for further resource definition

Drilling Confirms Gold Across Dulcie Central Gap

Zenith Minerals (ASX:ZNC) Limited's September 2026 Quarterly Report captures a pivotal moment in the company's history — one defined equally by what is happening underground and what is happening in the boardroom. At the Consolidated Dulcie Gold Project in Queensland, a 34-hole, 4,601-metre reverse circulation (RC) drilling program completed during the quarter tested the approximately 600-metre corridor between the Dulcie North and Dulcie deposits, an area known as Dulcie Central that sits on a recently acquired Mining Lease and is not included in the existing 675,000-ounce Inferred Mineral Resource.

All assays were received subsequent to quarter end, and the results are encouraging. Twenty of the 24 holes drilled at Dulcie Central returned gold intercepts above the 0.3 g/t gold reporting cut-off. The standout post-quarter result was 6 metres at 4.14 g/t gold from 123 metres in hole SRRC182. An earlier result from SRRC179 — reported during the quarter — returned 3 metres at 2.48 g/t gold from 130 metres. The frequency of positive intersections across the maiden drill program at Dulcie Central opens the possibility of a maiden Mineral Resource estimate for this corridor, which would expand the total Dulcie resource base.

Existing Resource and Development Context

Zenith's existing JORC Inferred Mineral Resource at the Consolidated Dulcie Gold Project stands at 21.3 million tonnes at 1.0 g/t gold for 675,000 ounces, established across granted Mining Leases at the Dulcie North and Dulcie deposits. The Dulcie Central Mining Lease (M77/599) covers the untested corridor between these two deposits and, if it proves to carry continuous mineralisation at economic grades, could materially add to the resource envelope.

The company is preparing Programme of Work applications for approximately 850 RC holes at Dulcie, aimed at increasing confidence in the existing Inferred Mineral Resource and supporting further resource definition at Dulcie Central, subject to regulatory approvals.

Takeover Offer: Forrestania Declares Unconditional

The corporate dimension of the September quarter dominated as much of the formal reporting as the drilling activity. Forrestania Resources Limited (ASX:FRS) made an off-market Takeover offer for Zenith during the quarter, a process that was accompanied by Takeovers Panel proceedings after the Panel declared unacceptable circumstances on 27 August 2026 and issued final orders on 17 September 2026. The Panel required additional disclosure obligations, which Zenith fulfilled through multiple Supplementary Target's Statements.

Forrestania declared its offer free of all defeating conditions on 22 October 2026 — subsequent to quarter end. A substantial holder notice dated 27 October 2026 disclosed Forrestania's relevant interest at 397,419,666 Zenith shares, equating to 61.4% of the company. Zenith's Board had reaffirmed its recommendation in July 2026 and the company released its Sixth Supplementary Target's Statement on 23 October 2026.

With Forrestania holding a controlling stake above 50%, the de facto outcome of the offer is established. Shareholders who have not yet tendered must assess their position against the terms of the unconditional offer.

Corporate Activity During the Quarter

During the quarter, 21,722,936 shares were issued on the exercise of listed options at $0.077, raising approximately A$1.67 million. The company also released its Annual Report for the year ended 30 June 2026 along with the Appendix 4G and Corporate Governance Statement. Ida Metal Investments Pty Ltd, a significant shareholder, stated during the quarter that it did not intend to accept the offer, a position noted by the market.

Risks

Shareholders who have not tendered face the prospect of holding a minority interest in a company where Forrestania controls 61.4%. Minority shareholders in a company with a dominant controlling Shareholder may face reduced Liquidity in the shares and limited ability to influence corporate direction. The takeover dynamics — including the Takeovers Panel proceedings and multiple supplementary disclosures — have created a period of elevated uncertainty. On the project side, Dulcie Central resource estimation remains subject to drilling density and geological modelling, and a maiden resource is not guaranteed by the drill results to date.

What to Watch Next

The most immediate corporate catalyst is the finalisation of Forrestania's offer process and any potential compulsory Acquisition if Forrestania's interest moves above 90%. On the geological front, progress on Programme of Work applications for the approximately 850-hole resource definition program and any announcement regarding a maiden Dulcie Central Mineral Resource Estimate would represent significant value-defining events for the combined asset base.

Sector Context

Queensland gold projects have attracted renewed attention during 2026 on the back of sustained elevated gold prices and increasing interest from developers seeking permitted, defined resources with clear development pathways. Dulcie's established 675,000-ounce resource base and the potential upside from Dulcie Central position it as an asset of growing interest in a consolidating sector, a dynamic that explains in part the strategic motivation behind Forrestania's offer.