Consolidated Zinc Ltd. – Extensional Drilling Hits Massive Sulphide Mineralisation

Resource drilling at Tres Amigos successfully intersected massive sulphide mineralisation at the target horizon
Results up to 34.7% Zn + Pb
Mineralisation confirmed to be fresh sulphides with high zinc and low lead content (Zn/Pb ratios of 8-12:1)
Metallurgical testwork at Tres Amigos shows a high recovery of zinc to concentrate

Consolidated Zinc Limited (ASX:CZL, “the Company”) has successfully intersected massive sulphide mineralisation and grades up to 34.7% Zn + Pb during resource expansion drilling at its high grade Plomosas Zinc Project in Mexico.

Drilling is designed to extend and infill the current JORC mineral resource at Tres Amigos and Tres Amigos North, and has continued to intersect significant zinc-lead mineralisation where predicted.

The JORC Resource upgrade and Scoping Study are on-track for release in the third quarter of 2017.

Resource Drilling Highlights

Extension drilling to the south of the 140 metre strike zone previously described between two highgrade holes has found multiple zones of massive mineralisation (LV5025 and LV5026).

The best intercepts include:

LV5025	1.50m at	8.04% Zn	0.01% Pb	7.33g/t Ag
and	1.35m at	34.71% Zn	0.01% Pb	18.80g/t Ag
LV5026	0.50m at	9.37% Zn	0.27% Pb	13.30g/t Ag
and	1.00m at	7.16% Zn	0.43% Pb	10.70g/t Ag

In addition holes LV5033 and LV5034 intersected significant massive sulphide mineralisation over 4.05 metres and 5.05 metres respectively (Figure 3). Assay results for these holes are awaited.

Hole LV5033 established mineralisation up dip from the current resource envelope and LV5034 increased confidence in the resource model while defining a pitch/plunge direction for mineralisation below the high grade zones intersected in LV5DD001 (4.7m @ 46.90% Zn+Pb) and LV5DD003 (6.10m @ 16.75% Zn+Pb, and, 4.15m @ 21.77% Zn+Pb).

Drill hole LV5027 – LV5030 effectively closed off the Tres Amigos North extension to the west with the Juarez Limestone not displaying any structural features in this area.

Metallurgy Highlights

Tres Amigos mineralisation is notable in that it comprises fresh sulphides and its zinc content is considerably higher than lead. Mineralisation in Tres Amigos’ lower Juarez Limestone Unit contains a Zn/Pb ratio between 8 to 12:1. This will impact favourably on the metallurgical processing of the mineralisation and test work to date shows high zinc recoveries to concentrate.

Mineralisation in the Mina Vieja horizon on Level 7, by comparison, has a Zn/Pb ratio of approximately 2:1.

Metallurgical drillholes using HQ3 core (LV5033, LV5034 and LV5035 (in progress)) were drilled close to the mineralised envelope both to provide samples for metallurgical testwork and increase the Tres Amigos resource tonnage.

Figure 1. Plan of Tres Amigos North showing trace of drillholes LV5023 to LV5035. LV5033 to LV5035 intersected visible massive sulphides for which assays are awaited.

Figure 2. Section through Tres Amigos North showing resource extension drilling. Tres Amigos mineralisation appears to be associated with flexures in the Juarez limestone unit. This interpretation defines the relationship between structural flexures and mineralisation at Plomosas.

Figure 3. Enlarged section of Tres Amigos North looking NW through Level 5 Drill Drive and showing alignment of mineralised intercepts on and off section, in relation to the resource envelopes.

Figure 4. Section through Tres Amigos North showing resource extension drilling. Holes LV5023 to LV5026 were drilled to infill previously untested 140 m zone between LV5008 and LV5018.

Note 1: TW represents an approximate true width of the mineralisation based on structural assessment of contact information and drill orientations. mdh: metres down hole

Resources Upgrade and Scoping Study

Based on the success of drilling around the Tres Amigos Resource at Level 5 and Level 7, and the high-grade sampling returned from newly defined areas within the mine at Las Espadas and Carola South (ASX Announcements: 21 March and 4 July 2017), the Company has elected to drill additional holes into these high-grade areas with the aim of including further material mineralisation into an upcoming JORC Resource upgrade.

Given the direction of ongoing metallurgical studies and the recent high-grade intercepts at Tres Amigos, the Company will continue to drill these areas to include them in the JORC Resource upgrade and further de-risk the project.

Additional holes that can be used for metallurgical testwork have been included in that program and, accordingly, the Company expects the additional drilling, JORC Resource upgrade and Scoping Study will be released in the third quarter of 2017.

ABOUT CONSOLIDATED ZINC

Consolidated Zinc Limited (ASX:CZL) is a minerals exploration company which is developing its 51%-owned high grade Plomosas Zinc Lead Silver Project in Mexico. 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’s main focus is to identify and explore new zones of mineralisation within and adjacent to the known mineralisation at Plomosas with a view to identifying new mineral resources that are exploitable.

Competent Persons’ Statement

The information in this report that relates to exploration results, data collection and geological interpretation is based on information compiled by Steve Boda BSc (Hons), MAIG, MGSA, MSEG and Andrew Richards BSc (Hons), Dip Ed, MAusIMM, MAIG, MSEG, GAICD. Messrs Boda and Richards are both Members of Australian Institute of Geoscientists (AIG) and Mr Richards is also a Member of the Australasian Institute of Mining and Metallurgy (AusIMM).

Both Messrs Boda and Richards have 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). Messrs Boda and Richards consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

The information in this report that relates to Mineral Resources is based on information compiled by Mr Robert Dennis who is a Member of the Australasian Institute of Geoscientists and Australian Institute of Mining and Metallurgy. Mr Dennis is a full time employee of RungePincockMinarco Limited. Mr Dennis has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Dennis consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Original Article: http://www.consolidatedzinc.com.au/wp-content/uploads/2017/08/170817-Extensional-Drilling-Hits-Massive-Sulphide-Mineralisation.pdf

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