Resource infill drilling:

• Drilling of LV5023 and LV5024 designed to infill and extend the Tres Amigos resource (TRS) has intersected 1.75m and 0.80m respectively of massive and semimassive sulphide mineralisation;
• Visual assessment of the style and content of mineralisation suggests this intercept is a high grade continuation of the current JORC mineral resource at TRS;

Newly identified area of significant zinc mineralisation:

• High grade zinc and lead mineralisation has been identified from mapping and sampling of La Espadas area which is in the northern parts of the mine;
• The mineralisation is immediately accessible via Level 5 workings;
• 33 rock chip channel samples were taken over 150m strike of massive and semimassive sphalerite and galena mineralisation;
• Visual assessment and sphalerite content suggests the zinc grade will be significant and confirms the potential for a significant extension to the north of ore grade mineralisation associated with the Juarez Limestone;
• Drilling is planned to determine the scope and geometry of the La Espadas mineralisation. 

Consolidated Zinc Limited (ASX:CZL) is pleased to provide an update on the drilling and mapping programs being undertaken at their high grade Plomosas Zinc Project in Mexico.

Resource Infill Drilling

Ongoing drilling designed to extend and infill the currently defined JORC mineral resource has continued to intersect significant zinc-lead mineralisation where predicted.

Two holes were planned as infill between two previously announced holes, LV5018 and LV5008, and aimed to extend the currently defined JORC (2012) Tres Amigos Resource downdip. Drill hole LV5018 was drilled several weeks ago to test the down dip extension of the Juarez Limestone and the southern extension of the mineralisation intersected in the Tres Amigos North area. It intersected 1.85m @ 32.88% Zn+Pb and11.07g/t Ag, which highlighted an untested zone of 140 metres strike between LV5018 and LV5DD008 which intersected 1.10m @ 30.65% Zn+Pb and 74.4g/t Ag.

LV5023 and LV5024 were subsequently drilled to test the 140m strike zone and infill between LV5018 and LV5008. Both intersected massive and semi massive sulphide zones of 1.75 metres and 0.80 metres at the target depths, which coincide with the inferred location of the main mineralised horizon (Figures 1, 2). An additional zone of mineralisation, comprising massive sulphides overprinted by pyrite over 2.04m, was intersected stratigraphically below the main mineralised zone in hole LV5024. 

Assays are pending for these two holes but are expected to be significant as visually the intercepts comprise massive sphalerite and galena and consistent with those intercepts seen in LV5018 and LV5008. 

New high grade zinc mineralisation identified to the north

Another area of high grade mineralisation has been identified at La Espadas and is currently being outlined in underground workings to the north of CZL’s previously announced project areas. The La Espadas area has been exposed and mapped in workings on Level 5 but was largely untouched by historical mining

Systematic rock channel chip samples were taken during mapping over 150m of continuous exposure and 33 were submitted for assay. Assays are awaited will be announced to the market upon receipt however, based on the abundance of sphalerite and experience in the Plomosas mine the results are expected to include some significantly high zinc grades (Figures 3, 4). 

The La Espadas area was identified during mapping and rock chip channel sampling to test the possible extension of mineralisation to the north. The La Espadas area is defined by the presence of the Mina Veija Manto, with mineralisation occurring in the footwall as massive sulphides, comprising typical low iron sphalerite and galena. This mineralisation is similar to the manto-style mineralisation that occurs elsewhere in Plomosas and was the main zone mined out previously by Gruppo Mexico. Only minor stoping of the mineralisation is present at the La Espadas area and mineralisation can be seen in the western and eastern walls.

Figures 4 to 7 show the location and nature of high grade massive, sphalerite and galena mineralisation over intervals up to 1.4m.

Geological mapping and modelling suggests there may be a mineralised trend association between the El Lagos Dos and La Espadas areas and this is another area that warrants further testing, 

(Figure 6). Drilling is planned to test this area as well as at depth to pick up the location of the underlying Juarez Limestone and any potential mineralisation.

The identification of additional mineralisation, this time to the north of the main mining area, continues to validate the model that CZL has developed and highlights the likelihood of further resource tonnages being identified within the existing mine infrastructure.

A further announcement will be made once final assays are received. 

ABOUT CONSOLIDATED ZINC

Consolidated Zinc Limited (ASX:CZL) is a minerals exploration company listed on the Australian Securities Exchange. The Company’s major focus is in Mexico where it recently acquired 51% of the exciting high grade Plomosas Zinc Lead Silver Project through its majority owned subsidiary, Minera Latin American Zinc CV SAPI. Historical mining at Plomosas between 1945 and 1974 extracted over 2 million tonnes of ore grading 22% Zn+Pb and over 80g/t Ag. Only small scale mining continued to the present day and the mineralised zones remain open at depth and along strike. The Company’s main focus is to identify and explore new zones of mineralisation within and adjacent to the known mineralisation at Plomosas with a view to identifying new mineral resources that are exploitable.

Competent Persons’ Statement

The information in this report that relates to exploration results, data collection and geological interpretation is based on information compiled by Steve Boda BSc (Hons), MAIG, MGSA, MSEG and Andrew Richards BSc (Hons), Dip Ed, MAusIMM, MAIG, MSEG, GAICD. Messrs Boda and Richards are both Members of Australian Institute of Geoscientists (AIG) and Mr Richards is also a Member of the Australasian Institute of Mining and Metallurgy (AusIMM).

Both Messrs Boda and Richards have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being undertaken to qualify as Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves’ (JORC Code). Messrs Boda and Richards consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

The information in this report that relates to Mineral Resources is based on information compiled by Mr Robert Dennis who is a Member of the Australasian Institute of Geoscientists and Australian Institute of Mining and Metallurgy. Mr Dennis is a full time employee of RungePincockMinarco Limited. Mr Dennis has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Dennis consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.