Key Information:

• Plomosas project delivers 3,958t processed in May 2021.
• Post commissioning optimisation ongoing
• Plomosas planned to remain at 4,500tpm for the next two quarters.

Consolidated Zinc Limited (“Company“) (ASX: CZL) is pleased to advise that the Plomosas plant and Aldama plant jointly processed 3,958 tonnes of ore in May, for 719 tonnes of zinc concentrates and 184 tonnes of lead concentrates.

The Company intends to continue processing through both plants until ore stockpiles are depleted and the Plomosas plant sustains the targeted 4,500tpm process rate. The plant has demonstrated its capacity to perform consistently above this rate but issues with some refurbished equipment, particularly the mill, have reduced plant availability in June. The flotation circuit has performed well, the cyclones and preconditioning would benefit from greater residence time which is being addressed.

June production is expected to be lower than May due to the time required to fix the equipment issues. However, modifications made during the downtime are expected to increase plant availability and utilisation in the second half of 2021.

Brad Marwood, Managing Director of CZL advised “The issues with the mill are disappointing particularly after an independent prepurchase inspection was commissioned. But the performance of the site team who have addressed each issue and have a plan to improve plant availability and plant utilisation, is pleasing and positive. Once completed the modifications and refinements are expected to deliver superior performance.”

Operating costs will be reported in the June 2021 quarterly report.

This announcement was authorised for issue to the ASX by the Directors of the Company. For further information please contact:

Brad Marwood
Managing Director
08 9322 3406

ABOUT CONSOLIDATED ZINC

Consolidated Zinc Limited (ASX: CZL) owns 100% of the historic Plomosas Mine, located 120km from Chihuahua City, Chihuahua State. Chihuahua State has a strong mining sector with other large base and precious metal projects in operation within the state. 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 started mining at Plomosas in 2018 and is committed to exploit the potential of the high-grade Zinc, Lead and Silver Mineral Resource through the identification, exploration, and exploitation of new zones of mineralisation within and adjacent to the known mineralisation with a view to identify new mineral resources that are exploitable at our Plomosas based processing facility.

Caution Regarding Forward Looking Statements and Forward-Looking Information:

This report contains forward looking statements and forward-looking information, which are based on assumptions and judgments of management regarding future events and results. Such forward-looking statements and forward-looking information involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual market prices of zinc and lead, the actual results of current exploration, the availability of debt and equity financing, the volatility in global financial markets, the actual results of future mining, processing and development activities, receipt of regulatory approvals as and when required and changes in project parameters as plans continue to be evaluated.

Except as required by law or regulation (including the ASX Listing Rules), Consolidated Zinc undertakes no obligation to provide any additional or updated information whether as a result of new information, future events, or results or otherwise. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward-looking statements.

Original Article: https://www.consolidatedzinc.com.au/wp-content/uploads/2021/07/20210701-Plomosas-Operating-Update-FINAL-ASX-LODGEMENT.pdf