TSX.V: ZFR I OTC: ZPHYF
DAWSON GOLD PROJECT
12.11 g/t Gold - 100% Zephyr -owned.
Management continues to hold the view that the Dawson section of the Dawson Gold Property has the potential to support an economic, near-term, low capex, low opex underground gold mine. Subject to receiving a mining permit and securing funding, the Company intends to construct a ramp to access the Dawson gold deposit and conduct underground infill drilling to increase confidence in the inferred gold resource as well as deep drilling with the objective of expanding resources. In order to undertake this program, the Company must first obtain the mining permit among other regulatory approvals.
New · October 2026
Investor presentation
The Company is currently completing a comprehensive 15-month groundwater and surface water monitoring program required to support the submission of a mining permit application. Four of the required five quarters of monitoring and sampling were successfully completed in December 2025, March 2026, June 2026, and September 2026. The fifth and final quarter of the program is scheduled for December 2026, keeping the Company on track to complete the full five-quarter program by year-end. In parallel with the groundwater program, the Company is completing a range of additional environmental and technical studies that will support the new mining permit application. Building on the Company's existing knowledge of the proposed Dawson Gold Mine, these studies will further enhance that understanding and demonstrate that the project can be developed in an environmentally responsible and technically sound manner. Upon receipt and review of all analytical data, Zephyr intends to submit a mining permit application to the Colorado Division of Reclamation, Mining and Safety in late January 2027.
Trench Program
The Company is evaluating the potentail for placer gold within its 100%-owned Judith Patented Placer Claim, located in the gulch that drains from the Wingy Gulch gold deposit and Windy Point gold showings. The Company intends to conduct exploratory trenching to evaluate volume, grade and distribution of gold within the gravels. This work was delayed from the first quarter of 2026 due to the availability of a key participant and recovery equipment and has not yet commenced. If the placer evaluation program identifies potentially economic gold mineralization, and subject to applicable permitting requirements, the Company may consider developing a gold recovery plan.
The Windy Gulch deposit, in particular, contains significant gold at surface that is eroding downslope into the gulch. Previous bedrock trenching conducted in 2017 at Windy Gulch returned 5.8 grams per tonne (g/t) gold over 31.7 meters, while a trench located approximately 40 meters downslope returned 7.6 g/t gold over 11.9 meters.