Key Information:

• 45-day intensive exploration program completed:
  • Field reconnaissance and mapping completed over 90% of leaseholdings.
  • Rock chip and trench samples taken from previously identified anomalies.
• Gold targets assessed for potential economic mineralisation:
  • Assay results pending for the Enrique and La Chona prospects.
  • Prospectivity of Potrero and Don Lucas anomalies downgraded.
• Mapping of structural controls on zinc and lead mineralisation undertaken:
  • Development new theory to target ore extensions within the mine.

Consolidated Zinc Limited (ASX: CZL or “the Company”) is pleased to announce that gold sampling and structural mapping has continued at the Plomosas mining lease concessions.

Field work identified historical gold workings and 67 samples were taken to confirm the presence of gold mineralisation at these and previously identified anomalies. Samples were taken over the Enrique, La Chona, Don Lucas and Potrero anomalies. Of these, 48 assays from the latter two prospects were returned and are detailed below.

The trends and structural controls of the gold mineralisation were assessed and follow up sampling of previously identified gold mineralisation was undertaken.

Gold Exploration

Historical exploration reports prepared in 2006 and 2008 for Plomosas indicated the presence of gold within the Plomosas mining lease concessions. The field work completed in November and December 2020 has identified the location of those historical samples, mapped the structures related to the gold assays previously taken and follow up on previous work reported. The assay results from 48 of the 67 samples were returned and confirm the presence of low-level gold mineralisation but did not demonstrate strike continuity. The highest gold assay of the 48 samples was 2.02g/t Au. The remainder returned up to 0.18 g/t Au with many <0.01 g/t Au. Table 1 provides full details of the assay results received to date.

Exploration results have downgraded the prospectivity of the Potrero and Don Lucas anomalies for economic gold mineralisation while assays are awaited for the Enrique and La Chona prospects.

Figure 1: Location plan of Plomosas Mining Concessions

Base Metal Exploration

The regional mapping program has also encountered significant base metal prospective structures and geology approximately 500 metres along trend from the high-grade stopes of the Juarez mine. This has led to the development of a new theory of the structural control of the base metal mineralisation within the mine. This suggests a ~30m fault displacement of several parallel ore zones which were historically mined in high grade stopes such as Las Espadas. This was not identified at the time when historic mining ceased. This theory will be tested during 2021 and, if correct, suggests the potential for defining high-grade base metal mineralisation in close proximity to existing mine workings.

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. 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.

Competent Persons’ Statement

The information in this report that relates to exploration results, data collection and geological interpretation is based on information compiled by Mr Duncan Greenaway (M.Sc.Hons), MAIMM Mr Greenaway is a Member of the Australasian Institute of Mining & Metallurgy.

Mr Greenaway has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being undertaken to qualify as Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves’ (JORC Code). Mr Greenaway consents to the inclusion in this announcement of the matters based on their information in the form and context in which it appears.

Original Article: https://www.consolidatedzinc.com.au/wp-content/uploads/2021/01/20210128-Gold-exploration-Final-ASX-Lodgement.pdf