Strata’s Bold Expansion: Can the Zelica South Acquisition Deliver on Gold Potential?

Capital Raise Fuels Exploration Ambitions

Strata Minerals Limited (ASX – SMX) has announced a successful capital raise of $1.175 million through a two-tranche equity placement priced at $0.02 per share. The funds are earmarked to support exploration activities across its gold portfolio, with a particular focus on the Zelica Gold Project in Western Australia's prolific Yundamindra district.

The placement attracted commitments from both existing and new sophisticated and institutional investors, underscoring market confidence in Strata’s strategic direction. The first tranche, raising approximately $1.105 million, will be issued under existing placement capacity, while the second tranche, involving $70,000, awaits shareholder approval.

Strategic Acquisition Quadruples Project Footprint

In a significant move to bolster its exploration potential, Strata has executed a binding Heads of Agreement to acquire 100% ownership of the adjacent Zelica South Project (E39/2188) from Kalgoorlie Gold Mining Limited. This acquisition expands the contiguous Zelica Project area by 400%, increasing the total strike length of the gold mineralised corridor to approximately 8 kilometres.

Located between the gold mining hubs of Leonora and Laverton, the Zelica South tenement lies within trucking distance of multiple processing mills and is situated in a region known for large-scale gold deposits exceeding one million ounces. Despite its prospective geology, Zelica South remains underexplored, with only 21 shallow drill holes historically completed, primarily targeting nickel laterite rather than gold.

Encouraging Historical Gold Indicators

Historical exploration data reveals promising gold mineralisation at Zelica South, including near-surface quartz veining with rock chip samples grading as high as 39.60 grams per tonne gold and 6.44 grams per tonne gold at the West Nest Prospect. Limited reverse circulation drilling has returned intercepts such as 4 metres at 0.86 g/t gold from 14 metres depth, including 1 metre at 2.54 g/t gold, and 1 metre at 3.02 g/t gold from 16 metres.

These results, while preliminary, suggest a significant discovery opportunity. Strata’s Managing Director, Peter Woods, highlighted the strategic value of the acquisition, noting the expanded mineralised corridor and the project's location within a highly endowed gold region.

Next Steps and Exploration Outlook

Strata is currently reviewing all available data and planning initial fieldwork at Zelica South, including geological mapping, sampling, and reconnaissance. The company aims to commence targeted aircore drilling as soon as practicable, with the maiden drill program at Zelica already underway. First assay results from this program are anticipated in the first quarter of 2026.

This expansion and capital injection mark a pivotal phase for Strata Minerals as it seeks to unlock value from its expanded gold portfolio. The company’s methodical approach, combining strategic land acquisition with disciplined exploration, positions it well to capitalize on the region’s rich mineral endowment.