Consolidated Zinc Ltd. – Tres Amigos Resource Drilling Update

Drilling of LV5023 and LV5024 designed to infill and extend the Tres Amigos resource (TRS) were successful in intersecting massive and semi massive sulphide mineralisation at the target horizon
Results up to 31.5% Zn + Pb were obtained. Mineralisation confirmed to be fresh sulphides with high zinc and low lead content (Zn/Pb ratios of 8-12:1)
Drilling continues to infill and extend the Tres Amigos JORC (2012) resource, filling in a 140m strike-length gap between previous drill intercepts
Drilling results expected to meaningfully influence JORC Resource upgrade potential

Consolidated Zinc Limited (ASX:CZL) is pleased to provide an update on the infill and extension drilling being undertaken of the Tres Amigos resource at their high grade Plomosas Zinc Project in Mexico.

Resource Infill Drilling

Ongoing drilling designed to extend and infill the currently defined JORC mineral resource has continued to intersect significant zinc-lead mineralisation where predicted.

Since the last drilling update five additional holes were completed (LV5025 to LV5029) and assays were received for holes LV5019 – LV5024 (Tables 1 and 2). LV5023 and LV5024 were planned as infill between two high grade intercepts in previously announced holes, LV5018 and LV5008, which were 140m apart (Figures 1 and 2).

Drill hole LV5018 was originally drilled to test the down dip extension of the currently defined JORC (2012) Tres Amigos Resource in the Juarez Limestone Unit and the southern extension of the mineralisation intersected in the Tres Amigos North area. It intersected 1.85m @ 32.88% Zn+Pb and 11.07g/t Ag, which highlighted an untested zone of 140 metres strike between LV5018 and LV5DD008 (which intersected 1.10m @ 30.65% Zn+Pb and 74.4g/t Ag).

LV5023 and LV5024 were subsequently drilled to test the 140m strike zone and infill between LV5018 and LV5008. Both were successful in intersecting massive and semi massive sulphide zones at the target depths, which coincide with the inferred location of the main mineralised horizon (Figure 2). Hole LV5024 also intersected an additional zone of mineralisation stratigraphically below the main mineralised zone in the Juarez Limestone. Tables 1 and 2 summarise the hole details and assay results received for which the better intercepts included:

LV5023	1.75m at	9.43% Zn	1.67% Pb	9.33 g/t Ag
LV5024	0.95m at	10.95% Zn	6.70% Pb	22.70 g/t Ag
	and 0.55m at	31.25% Zn	0.25% Pb	8.60 g/t Au

Tres Amigos mineralisation is notable in that it comprises fresh sulphides and its zinc content is considerably higher than lead. While Level 7 mineralisation in the Mina Vija horizon exhibits a Zn/Pb ratio of approximately 2:1, the Tres Amigos mineralisation in the 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.

Drillholes LV5019 to LV5022 were drilled to close off the eastern margin of the mineralisation for resource estimations (Table 1) however, the western margin, down dip, remains open.

Figure 1. Plan of Tres Amigos North showing trace of drillholes LV5023 and LV5024 which were drilled to infill a previously untested 140 m zone between LV5008 and LV5018

Figure 2. Section through Tres Amigos North showing resource extension drilling. Holes LV5023 and LV5024 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

Given the success of drilling around the Tres Amigos Resource at Level 5 and Level 7, and the highgrade 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 from drilling around Tres Amigos the Company has decided it is prudent to further drill these areas to include them in the JORC Resource upgrade and de-risk the project. To that end, the Company expects the additional drilling, JORC Resource upgrade and Scoping Study will be released in the third quarter of 2017.

Figure 3. Plomosas project location plan showing currently defined JORC Mineral Resources, workings and newly confirmed Las Espadas area.

ABOUT CONSOLIDATED ZINC

Consolidated Zinc Limited (ASX:CZL) is a minerals exploration company listed on the Australian Securities Exchange. The Company’s major focus is in Mexico where it recently acquired 51% of the exciting high grade Plomosas Zinc Lead Silver Project through its majority owned subsidiary, Minera Latin American Zinc CV SAPI. 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/2017/07/200717-Tres-Amigos-Resource-Drilling-Update.pdf

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