- Court rescinds orders granted to terminated mining contractor
- Normal operations continue at Plomosas Mine
Consolidated Zinc Limited (ASX: CZL or “the Company”) advises that its 100% owned Mexican subsidiary, Minera Latin American Zinc S.A.P.I de C.V. (“MLAZ”), has succeeded in legal action to end the intimidation and excessive actions of Caminos y Construcciones Ganti S.A. de C.V. (“Ganti”).
Ganti were MLAZ’s mining contractor until they were terminated on the 25 November 2019, in accordance with their contract. Ignoring the contracted conflict resolution procedures, Ganti submitted legal proceedings in the Federal District Court of Chihuahua (“the Court”) against MLAZ. MLAZ has lodged its defence and counterclaims.
On Friday 31 January, Ganti representatives arrived at the MLAZ office and at the third party owned Aldama plant, seizing control of financial records and physical inventory. CZL’s Board were advised that these actions significantly exceed the actions allowable under the order Ganti received from the Court. See announcement dated 3 February for further details.
On 4 February the Court rescinded the orders given to Ganti. The actions by Ganti proved only a minor and temporary interruption to administrative functions, MLAZ’s operations at Plomosas mine were unaffected.
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, 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/2020/02/20200207-CZL-Ganti-Court-Win-FINAL-ASX-LODGEMENT.pdf
