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Consolidated Zinc Ltd

Consolidated Zinc makes Mexican mine Plomosas commercial in 70 days

The company is expecting its first invoice for ore produced to be paid this month.

Plomosas zinc-lead-silver mine in Mexico
Mining at Plomosas zinc-lead-silver mine restarted in September 2018

Consolidated Zinc Ltd (ASX:CZL) produced 4,072 tonnes of ore at grades of 10.2% zinc, 2.4% lead last month at its flagship Plomosas zinc-lead-silver mine in Mexico.

A Santa Eulalia concentrator achieved better-than-expected recoveries of 89% zinc and 86% lead on Plomosas ore batched or campaigned through the concentrator.

READ: Consolidated Zinc ups stake in Plomosas mine to 90%

The Mexico-focused Australian minerals exploration company has a 90% majority interest in the 3,019-hectare high-grade project 350 kilometres from Texas through its subsidiary Minera Latin American Zinc CV SAPI.

Consolidated Zinc chief executive officer Brad Marwood reported: “Ore hauled to surface of 4,072 tonnes with improved availability of equipment and more equipment brought to site.

“The first batch invoice was prepared during the month and is expected to be paid in the first half of January 2019.

“Thus commercial production has commenced at the Plomosas mine after only 70 days from commencement of mine development.”

The company expects to improve its production figure this month.

Marwood tipped: “During January 2019 production is expected to increase as the mine will not have the closure and reduced staffing that occurred during the end of year holiday season.”

The company began mining the project in September 2018 and produced first production figures for the October 2018 calendar month.

Consolidated Zinc has mined 528.14 tonnes of zinc and 113.30 tonnes of lead since reopening the project.

Following its start to mining, the company upped its stake in the project in December 2018 for $750,000 in cash and $1.7 million of shares after previously holding a 51% stake through its subsidiary.

READ: Consolidated Zinc shares double after mining starts at Mexican zinc-lead-silver project

Historical mining at Plomosas extracted more than 2 million tonnes of ore grading 22% zinc and lead and more than 80 g/t silver between 1945 and 1974.

Limited modern-day mining was subsequently undertaken at the site 120 kilometres from Chihuahua City, in Chihuahua State in the following decades.

The state has a strong mining sector that includes large and operating base and precious metal projects.

Perth-based Consolidated Zinc hopes to exploit the potential of the project’s high-grade zinc, lead and silver mineral resource by identifying, exploring and mining new zones of mineralisation within and adjacent to the known mineralisation.

The zones remain open at depth and along strike.

Consolidated Zinc has said the base metal mineralisation seems to be a predominantly intrusive-related hydrothermal replacement of limestone-rich sedimentary units that are found a well-defined stratigraphic horizon, similar to Mississippi Valley-type (MVT) deposits.

Quick facts: Consolidated Zinc Ltd

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Market: ASX
Market Cap: $16.24 m
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