• Ore processed of 4,158 tonnes with zinc recovery of 89% to Zinc Concentrate

• Ore mined of 3,873 tonnes at 9.6% zinc, 2.7% lead

• Development of 190m, Stope access to 972m Level

Consolidated Zinc Limited (ASX: CZL or “the Company”) is pleased to provide an update on February 2019 production at its Plomosas zinc-lead-silver mine in Mexico.

Ore Processing

Ore deliveries to the Santa Eulalia concentrator were 4,158 tonnes during the month, with reported recoveries of 89.2% zinc to Zinc Concentrate and 83.5% lead to Lead Concentrate. The concentrate grades were 48.1% zinc in Zinc Concentrate and 42.7% lead in Lead Concentrate. These recoveries are within the long-term recovery expectations of blending Plomosas with the Santa Eulalia ore at the Santa Eulalia processing plant. The Plomosas ore concentrates to a low impurity concentrate which is highly desired by smelters.

Ore Production

Ore mining

Plomosas mine continues to increase production, reporting record ore mined for February of 3,873 tonnes at 9.6% zinc and 2.7% lead. Ore grades have remained consistent in comparison to the prior month due to ongoing development in ore and are expected to increase as the proportion of ore mined from the high grade 972 RL level stopes increases in March.

Development of 190m was achieved, with the decline between Level 5 (992mRL) and 972mRL completed along with 32.6m of cross cut to access the Tres Amigos orebody. Ore strike drives on the 972m RL level were extended 21m during the month. The 972mRL ventilation rise was advanced 24m during the month and will provide a clean air circuit once completed early in March.

Stope 1000 continues to expose massive sulphide mineralisation while, the 992SE stope has opened-up with the hanging wall ore and main zone are merging. High grade stopes were developed on the 972 sub-level during February which will provide additional ore stoping options for the next 6 months.

The decline between 972 sub-level and 952 sub-level has been commenced and is expected to be completed by the second quarter 2019.

For and on behalf of Consolidated Zinc Limited.

ABOUT CONSOLIDATED ZINC

Consolidated Zinc Limited (ASX: CZL) owns 90% of the historic Plomosas Mine, located 120km from Chihuahua City, Chihuahua State, Mexico. 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 has recommenced mining at Plomosas 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.

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.

Production Targets:

Production targets referred to in this report are underpinned by estimated Mineral Resources which have been prepared by competent persons in accordance with the requirements of the JORC Code. The production targets in this report are sourced from both Indicated and Inferred Mineral Resources and it should be noted that there is a low geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target will be realised.

There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realised. The stated production target is based on the Company’s current expectations of future results or events and should not be solely relied upon by investors when making investment decisions. Further evaluation work and appropriate studies are required to establish sufficient confidence that this target will be met.

Original Article: https://www.consolidatedzinc.com.au/wp-content/uploads/2019/03/130319-February-2019-Production-Update.pdf