Zephyr Minerals Stock Price, News & Analysis

Zephyr Minerals Ltd. (OTC Pink: ZPHYF) is a mineral exploration and development company with a focus on gold projects. According to company disclosures, Zephyr is mission focused on obtaining a mining permit for its 100% owned Dawson Gold property in Colorado, USA, and on advancing this project to the next stage of development. The company also evaluates and pursues gold and lithium exploration opportunities in Zimbabwe through acquisitions and joint ventures.

Core focus: Dawson Gold property in Colorado

Zephyr states that its principal asset is the Dawson Gold property, a 100%-controlled gold project in Colorado. The Dawson Gold Deposit hosts an Inferred Mineral Resource prepared in accordance with National Instrument 43-101 ("NI 43-101"). The resource estimate, with an effective date of July 19, 2013, describes 343,000 tonnes grading 12.11 g/t for 133,500 ounces of gold at a 5 g/t cut-off with no top cut, and 116,300 ounces of gold at 10.55 g/t with a 40 g/t top cut. The company notes that no updates to this resource estimate have been made to incorporate drilling completed between 2017 and 2020.

A Preliminary Economic Assessment (PEA) for Dawson was prepared in accordance with NI 43-101 with an effective date of March 21, 2017. The PEA, based on a gold price of US$1,250 per ounce, indicated an all-in sustaining cost ("AISC") per ounce of US$692. Zephyr emphasizes that Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability and that the PEA is preliminary in nature, including inferred resources that are too speculative geologically to be categorized as mineral reserves. The company notes that there is no guarantee any part of the mineral resources will be converted into a mineral reserve in the future.

Zephyr describes the Dawson Gold Deposit as open at depth, with exploration potential to the east and west. The company highlights several zones with exploration potential, including:

• The Sentinel zone, a 700-metre-long area to the east that has not been drill tested.
• The Windy Gulch and Windy Point zones to the west, where follow-up drilling of promising targets is contemplated.

The company notes that the Dawson project features a small footprint associated with the proposed underground mine, ownership or control of all necessary lands by Zephyr, a climate that supports year-round operations, and nearby infrastructure and industrial support.

Permitting and environmental work

Zephyr reports that it is focused on obtaining a mining permit for the Dawson Gold property from the Colorado Division of Reclamation, Mining and Safety ("DRMS"). The company has been engaged in mine permitting activities and, at times, has placed the project in hiatus pending the collection and submission of additional water well data and the resolution of environmental-related questions.

In more recent updates, Zephyr states that it has completed a water well drilling program in support of resubmitting a mining permit application for Dawson. It has also engaged Pinyon Environmental, Inc. of Lakewood, Colorado, to conduct a comprehensive water monitoring and analytical program designed to establish baseline groundwater and surface water conditions at and around the Dawson Gold Deposit. Monitoring is planned on a quarterly basis through December 2026, after which the company intends to resubmit its application to DRMS.

The company further notes that the mining permit application will be resubmitted upon receipt of analytical results from the fifth and final quarter of water monitoring. These activities underscore Zephyr's focus on environmental data collection and regulatory requirements as part of advancing Dawson toward potential permitting.

Exploration potential at Dawson

Zephyr highlights several aspects of exploration potential at Dawson. The deposit is described as open at depth, with potential to expand resources along strike to the east in the Sentinel zone and to the west in the Windy Gulch and Windy Point zones. The company notes that the Sentinel zone has not been drill tested and that follow-up drilling is contemplated in the Windy Gulch and Windy Point areas.

At the Judith Patented Placer Claim, which is 100% owned by Zephyr, the company has elected to proceed with an exploratory trenching program, subject to permit modification approval. The trenching is planned to target a gulch that directly drains from the Windy Gulch gold deposit and Windy Point gold showings. Zephyr reports that the Windy Gulch deposit contains significant gold at surface that is eroding downslope into the gulch. Previous bedrock trenching conducted in 2017 at Windy Gulch returned 5.8 g/t gold over 31.7 meters, while a trench approximately 40 meters downslope returned 7.6 g/t gold over 11.9 meters.

The company has also indicated that it is reviewing its drillhole database to identify zones of gold mineralization below the 5 g/t cutoff used in the 2017 PEA. Zephyr notes that the resource estimate was completed when the gold price was approximately US$1,300 per ounce and that management believes a lower cutoff grade may be warranted at higher gold prices, which could increase the volume of mineralization. The company has stated that results of this review will be released upon completion.

Zimbabwe gold and lithium exploration strategy

Beyond Colorado, Zephyr reports that it is conducting ongoing evaluations of gold properties in Zimbabwe for potential acquisition and/or joint venture. The company focuses on projects with obvious gold potential, as demonstrated through active, shallow, small-scale mining operations or previous exploration work combined with favorable geology. Zephyr states that properties of interest should be of sufficient areal extent to host a target potential of at least one million ounces of gold.

To advance this strategy, Zephyr has signed multiple property joint venture agreements and has applied for two Exclusive Prospecting Orders ("EPO") covering 124,000 hectares in Zimbabwe. The company notes that the areas covered by these EPO applications are prospective for gold and lithium. Zephyr is also actively reviewing lithium opportunities generated through in-house research and property submissions from third parties.

The company has announced plans to conduct ground magnetic and induced polarization (IP) geophysical surveys over three Zimbabwean gold properties, referred to as MC, MC-2 and Nyanga North, followed by a diamond drill program. Zephyr reports that MC and MC-2 are currently being mined for gold on a small scale by pits ten to twenty meters deep in weathered zones, while Nyanga North lies on strike with a postulated wide shear zone where small-scale gold mining has occurred to the west. To the best of the company's knowledge, these properties have not been subjected to modern exploration methods or drill testing.

Corporate and financing activities

Zephyr trades on the TSX Venture Exchange under the symbol ZFR and on the OTC Pink market under the symbol ZPHYF. The company has used non-brokered private placements to fund exploration and permitting work. It has disclosed several offerings involving units composed of common shares and transferable share purchase warrants. Net proceeds from these financings have been allocated to mineral exploration programs in Zimbabwe, drilling and monitoring water wells at the Dawson Gold property in Colorado, and general corporate and working capital purposes.

The company has also reported insider participation in certain private placements, which it identifies as related party transactions under Multilateral Instrument 61-101. Zephyr has described its reliance on available exemptions from formal valuation and minority shareholder approval requirements where insider participation remains below specified thresholds.

Technical oversight and qualified persons

Zephyr's technical disclosures reference NI 43-101 standards and identify qualified persons responsible for reviewing and approving scientific and technical information. The company cites a "Resource Estimate Technical Report for the Dawson Property Fremont County, Colorado, USA" dated September 6, 2013, and a "National Instrument 43-101 Technical Report for the Dawson Property, Colorado, USA" effective March 21, 2017, prepared by independent engineering and geological consultants.

In its news releases, Zephyr identifies qualified persons who have reviewed and approved technical content related to both the Dawson Gold property and Zimbabwe exploration programs. This includes references to professionals registered with organizations such as the Society for Mining, Metallurgy & Exploration (SME), the Australasian Institute of Mining and Metallurgy (AusIMM), and the Society of Economic Geologists, as well as qualified persons under NI 43-101.

Business profile and sector classification

Based on available information, Zephyr Minerals Ltd. operates in the mining and mineral exploration sector, with a focus on gold and potential lithium-bearing properties. While the general industry classification provided is "Dimension Stone Mining and Quarrying" within the broader "Mining, Quarrying, and Oil and Gas Extraction" sector, the company's own disclosures emphasize gold exploration and development, along with lithium opportunities in Zimbabwe.

Zephyr's activities span early-stage exploration, resource definition, economic assessment, and mine permitting. The company highlights a combination of underground mine development potential at Dawson and greenfield exploration in underexplored Archean greenstone belts in Zimbabwe. Its disclosures emphasize regulatory compliance with NI 43-101 for technical reporting and the use of independent consultants for resource estimation and economic assessment.

Key attributes highlighted by the company

In its public communications, Zephyr emphasizes several attributes of its projects and strategy:

• A 100% owned Dawson Gold property in Colorado with an NI 43-101 Inferred Mineral Resource and a completed PEA.
• Exploration potential at Dawson, including open extensions at depth and along strike in the Sentinel, Windy Gulch, and Windy Point zones.
• A small footprint associated with the proposed underground mine at Dawson, with ownership or control of necessary lands and access to nearby infrastructure and industrial support.
• Ongoing environmental and water monitoring programs to support a mining permit application to Colorado DRMS.
• Active evaluation of Zimbabwean gold properties with small-scale mining or historical exploration, and applications for Exclusive Prospecting Orders over large land packages prospective for gold and lithium.
• Use of private placements to fund exploration, permitting, and corporate activities.

All of the above information is drawn from Zephyr Minerals Ltd.'s publicly available news releases and technical descriptions, which provide the primary source for understanding the company's projects, strategy, and regulatory framework.