Strata Faces Key Assay Results as Penny South Drilling Completes and Zelica Deal Nears
Strata Minerals has resumed diamond drilling at its Penny South Gold Project targeting extensions of known mineralisation and secured an option to acquire the Zelica Gold Project, enhancing its Western Australian portfolio.
- Diamond drilling recommenced at Penny South targeting mineralised extensions
- Secured up to $200,000 government co-funded grant for deep drilling
- Entered binding option agreement to acquire 100% of Zelica Gold Project
- Completed fieldwork on uranium anomaly at Elliot Lake Project, Canada
- Ended quarter with $1.47 million cash and no debt
Diamond Drilling Resumes at Penny South
Strata Minerals Limited (ASX – SMX) has made significant progress in its September 2025 quarter activities, notably restarting diamond drilling at its flagship Penny South Gold Project in Western Australia. The program comprises three holes totaling approximately 1,500 metres, designed to test down-dip and down-plunge extensions of gold mineralisation previously identified by reverse circulation drilling earlier this year.
Two diamond holes at Target 3 focused on extensions of mineralisation intersected in hole SMX009, which returned 4 metres at 2.02 grams per tonne gold. Meanwhile, a high-priority deep hole at Target 1 reached around 1,000 metres depth, co-funded by the Western Australian Government’s Exploration Incentive Scheme (EIS) for up to $200,000. This hole aims to intersect the interpreted down-plunge extensions of the high-grade Penny Gold Mine operated by Ramelius Resources, located just 500 metres north of Strata’s tenement boundary.
Strategic Acquisition of Zelica Gold Project
In a strategic move to bolster its gold exploration portfolio, Strata executed a binding option agreement to acquire 100% of the Zelica Gold Project, situated in the Eastern Goldfields of Western Australia. The project features a high-grade, shallow oxide gold mineralisation zone along a strike length of approximately one kilometre, open at depth and along strike, and is located on a granted mining licence.
Zelica benefits from historical infrastructure including a pre-stripped open pit, stockpiled low-grade material, partially constructed vat leach ponds, and water bores. Strata plans to validate and expand on historical drilling results as part of its exploration strategy. The acquisition terms include an initial cash payment and share issuance, with a deferred payment contingent on converting historical resource estimates to current JORC standards.
Exploration and Financial Position
Beyond gold, Strata also advanced its uranium exploration at the Elliot Lake Project in Canada, completing a field trip to the Blind River claim block to map and sample a significant airborne uranium/thorium radiometric anomaly. This complements the company’s diversified mineral focus.
Financially, Strata ended the quarter with a cash balance of $1.47 million and no debt, reflecting prudent capital management amid ongoing exploration expenditure of $343,000. The company continues to evaluate strategic asset opportunities to complement its existing portfolio, positioning itself for growth as assay results from the recent drilling program are awaited in the coming weeks.
Bottom Line?
With assay results pending and new assets in the pipeline, Strata Minerals is poised for a pivotal phase in its exploration journey.
Questions in the middle?
- What will the assay results reveal about the extent and grade of mineralisation at Penny South?
- How will the Zelica Gold Project acquisition impact Strata’s valuation and exploration strategy?
- What are the next steps for uranium exploration at Elliot Lake following initial sampling?
