On 17 January 2019, Consolidated Zinc Limited (ASX: CZL), a minerals exploration and production company highlights its investors' presentation where the company was able to achieve the commercial production of zinc. Its zinc mine is in a rich and underexplored region. The company has 90% ownership in the Plomosas project which it achieved in December 2018. The Plomosas project is a region with high-grade zinc ore of high-quality concentrate. This zinc has a high demand in the market, and it requires a low cost of production. By the end of 2019, the company has a target to attain a production cost of US$0.50/lb zinc.
The mining process at Plomosas project started in September 2018, and the target is to reach a production level up to 10,000 tpm by the mid of 2019. The company has built a relationship with Grupo Mexico which is the largest miner in Mexico and also entered into the tenement/offtake contracts to achieve its production goal. The company is further exploring the nearby mining potential to seek any acquisition and strengthen the regional potential.
Further as the presentation proceeds, investors were given an overview of the Plomosas mine which covers its history, its stage 1 of initial production, its status from September 2018 to Jan 2019, Stage Two Shaft refit & Production expansion, the mine layout, the mine life, the resource expansion plan and the resource focus.
In the stage one production which started in September 2018, the mining began at Tres Amigos. From the region, total mining of 445,518 tonnes led to the discovery of 14.3% zinc, 2.61% lead and 17 g/t of silver. As a result of decline haulage, there is an ongoing Room & Pillar mining until shaft gets refurbished by forecast H2 2019.
In stage two of the production, the company has plans to refit the shaft recommissioning in the third quarter of 2019 followed by Shaft hauling at 500 tpd.
During the H2 2019, additional resources that got discovered during the exploration in multiple geological layers, down dipped of the existing resources along the strike. The drilling in the mine covers a region of 600 meters of 4000 meters strike. During the exploration, it was found that the mine has a longer life with a highly prospective target
The presentation also covers five unexplored regions within the mine area which are the priority target area. These include Juarez which has existing mineralization in drives and remains undrilled. Mina Vieja, which is a possible extension of Tres Amigos. The northern region of Tres Amigos is a source of zinc and lead with grades up to 33.2%. The western part of Las Espadas which remains untested but is a source of high-grade zinc and lead with grades up to 50.2% and Level 7 Expansion where resources are available in open down plunge and down dip.
The exploration also led to the discovery of two underground targets Las Espadas East and Carola South. At Las Espadas East, there is a source of zinc and lead with grades up to 58.6% and in Carola South there exists a region of zinc and lead with grades up 53.62% which remains undrilled. The company is further exploring other prospects in 2019.
At present, the market price of CZL share is A$0.020 with the market capitalization of A$22.14 million.
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