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It doesn't appear in the list under Graphics Mods? As long as the xml file is there it should be recognized. Are the files inside a folder in the zip file? If so, try zipping the files directly instead.

Nope, it doesn't appear. Let me include some pictures of what it looks like right now:

To explain the images, the first one is just the game file itself to show you what it looks like and where the mod folder is located on my pc. 

The second image is your example mod alongside my own, and the third image is a comparison between the example mod and my mod. I've also included the ground textures image because during my pixel art drawing I used the "smudge" tool for the grass and dirt. I'm unsure of whether using the smudge tool or not will affect the overall file.

Another thing, both zip files are WinRAR Zip archive files. It's kind of weird that it isn't working.... I believe it's definitely something on my end and I'm doing something wrong but I can't quite figure it out.