• COVID-19 protocol implementation complete at the Plomosas Mine and Aldama processing plant
• Mining re-commenced 1 June 2020, processing re-commenced 21 June 2020
• Production now at pre-COVID-19 shutdown rates with reduced operating costs

Consolidated Zinc Limited (ASX: CZL or “the Company”) is pleased to advise it has returned to pre-COVID-19 production rates at Plomosas mine and Aldama processing plant (“Aldama”).

In early April 2020, the Mexican Government issued a COVID-19 related decree to shut down all non-essential services, which included all mining operations at that time. However, from 1 June 2020, the mining sector was deemed to be an essential service, allowing operations to re-commence.

The Company has put in place stringent health, safety and hygiene standards at its operations to identify any COVID-19 risks and minimise the risk of transmission amongst its employees and contractors. No cases of COVID-19 have been reported to date at our two operational sites.

At Plomosas, the ramp-up to budgeted mine production was impacted by delayed restarts in other industries required to sustain mining operations including maintenance and service supply sectors that were deemed non-essential. Restarting toll processing was delayed until the appropriate levels of mine production was reached.

During the shutdown period, maintenance was completed enabling the removal of hire equipment and employee contracts were renegotiated to better align remuneration with performance. Supplier contracts were also reviewed and renegotiated where possible. These and other measures implemented during the shutdown have allowed Plomosas and Aldama to return to pre COVID-19 shutdown production rates in June and should significantly improve efficiency and reduce costs of operations going forward.

The Plomosas mine is close to the United States border, with key equipment, consumables and supplies sourced from the United States. COVID-19 has increased import times from the United States into Mexico, with periods of up to 90 days impacting delivery. Whilst there has been no material impact on production from the delays, there is a possibility of future production impacts should critical items be required from the United States.

Based on June production figures, we anticipate the third quarter will be a better operational quarter than we have seen this year.

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 commenced 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/2020/07/20200702-COVID-19-and-Mine-Update-FINAL-ASX-LODGEMENT.pdf