Consolidated Zinc confirms extension in Mexico
Emerging zinc miner Consolidated Zinc (ASX:CZL) has confirmed a down-dip extension of its key ‘Tres Amigos’ zone at the Plomosas project in Mexico.
It told shareholders ahead of a roadshow this week of the extension, based on drilling of the LV5DD007 hole down dip of the main Tres Amigos mineralised zone.
CZL said that the hole encountered “another significant intersection of massive sulphides and wide zone of disseminated and veined base metal sulphides.”
This, it said, confirmed its theory of the zone extending to below the main ‘Main Manto Marble’ section of the Plomosas project.
It believes the Tres Amigos zone may have been mined previously 400m along strike to the south south-east and 800m to the north west.
The hole was drilled as a follow-up to the LV5DD003 hole which intersected hits such as 4.45m at 19.34% Zn, 1.67% Pb, and 15.25 grams of silver per tonne from 21.75m.
CZL said the current hole hit zones of mineralisation, with samples to be sent off for assay testing nearby.
It said further drilling of the Tres Amigos zone would take place over the next four to six weeks, while drilling at the main level would take place next month.
About Consolidated Zinc (ASX:CZL)
The main project for CZL is the Plomosas Zinc Project in Mexico.
It has been mined to the tune of 2 million tonnes of ore in the past, with an average zinc + lead grade of 22%. It has mined down to 270m below the surface.
CZL currently has a 51% stake in the project, but is aiming to increase this to above 80%.
It covers 11 exploration concessions covering over 3000 hectares in the northern Mexican state of Chihuahua, about two hours flight from Dallas to the north east.
CZL is aiming to initially focus on a 200tpd processing plant which is already present on site, using cashflow from early production to fund exploration.
It has focused on the project due to the high-grade nature of the zinc ore mined at the project to date.