CZL raises $3.5M and discovers new horizon at Plomosas
Published 22-DEC-2015 11:47 A.M.
|
3 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Consolidated Zinc (ASX:CZL) has found a new horizon at its Plomosas zinc mine in Mexico.
The ASX-listed small cap told its shareholders recently that while it was drilling the main ‘Level Seven’ manto horizon, it happened upon a previously unknown mineralised manto unit.
The new unit has been termed the ‘Jacanas Manto Horizon’, and is described as “a massive marble unit” which bears similar characteristics to the main marble unit at Level Seven.
The new mineralisation was encountered about 30-40m above the main Level Seven horizon, but CZL said the ultimate thickness of the new horizon is not known.
It’s at least 12m thick, but CZL said it would drill in the new year to find out more about the new horizon.
A graphic showing the new horizon
Meanwhile, the company has raised $3.5M in an over subscribed capital raising to sophisticated investors and Singapore based commodities and trading Group.
Money raised will go towards accelerating its drilling and development initiatives underway on the Plomosas Zinc project, while also being used to accelerate level 7 drilling and complete resource and associated testwork at Consolidated Zinc’s Tres Amigos resource.
Drilling at Tres Amigos was halted recently but will recommence in early January 2016 with contractors and drill rigs deployed on site.
In addition to its capital raising CZL also announced that an agreement had been reached with the Funan Groupo Pte Limited, an experienced trading group in Singapore, to provide immediate funding and ongoing services to the Company. Funan has strong banking ties and experience with projects similar to the Plomosas Zinc Project.
The initial funding is via a drawdown facility of up to $2.2M subject to final review of the technical data related to the project and a site visit within the next three months.
Consolidated Zinc MD Will Dix said of the extra capital, “It’s a great achievement for the Company to have secured funding that that will enable us to complete our near term exploration goals and move a step closer to the 2016 goal of becoming a Producer.
“These funds are earmarked for the drilling from the Level 7 development into areas below the previously mined orebody and also the finalisation of all the preliminary studies on our Tres Amigos discovery,” Dix concluded.
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.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
