Consolidated Zinc consolidates Tres Amigos zone
Consolidated Zinc (ASX:CZL) continues to prove up the Tres Amigos zone at its Plomosas zinc mine in Mexico, with recent drilling extending the known ore zone out over 300m of dip and 150m of strike.
The small cap zinc chaser told the market today that assays from several drill holes drilled to test the extent of the Tres Amigos zone, below the historically mined Main Manto Horizon, returned grades of up to 26.5% zinc.
While the drilling was designed to extend the known mineralisation, CZL has previously stated that it thinks this mineralised zone may extend 400m to the south-south east and 800m to the north west where the upper reaches of the zone were mined previously.
CZL said the zone still remains open, meaning further drilling will be needed to fully test the extent of the zone.
It will continue to drill the zone in the next four to six weeks, but it will continue to sample the main mineralised zone ‘Level 7’ in conjunction with the Tres Amigos drilling.
CZL said that should results at Tres Amigos track as they have done so far, then it would seek to fold this new zone into a scoping study to see whether a re-commissioned plant could be re-opened to provide short-term cash flow.
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 in the area to date.