Consolidated Zinc Ltd. – Tres Amigos Resource Drilling Update

High grade zinc assays continue to be obtained from infill and extensional drilling of the Tres Amigos resource. The drill campaign aims to convert inferred to indicated classifications and increase resource tonnages.
Results up to 22.01% Zn + Pb (LV5047) were obtained in significant widths up to 4.80 mdh (LV5046) within and outside of the existing JORC resource envelope.
Additional high grade intercepts up to 3.10 mdh at 20.05% Zn+Pb (LV5054) were obtained in holes intersecting mineralised feeder zones below JORC resources outlined to date.
Results are to be incorporated into the resource update planned for April 2018.

Consolidated Zinc Limited (ASX:CZL) is pleased to provide an update of the latest extensional and infill resource definition drilling campaign at Plomosas mine in Mexico. Tables 1 and 2 summarise the hole details and assay results received.

Results of infill drilling aimed at converting currently classified inferred resources to indicated classification continued to return good results of which the better intercepts included:

LV5046 4.80m at 11.91% Zn, 3.94% Pb, 13.73 g/t Ag
LV5048 1.00m at 6.70% Zn, 2.34% Pb, 10.20 g/t Ag
LV5050 0.90m at 9.22% Zn, 4.70% Pb, 14.30 g/t Ag

Extensional drilling including holes LV5047, LV5049, LV5052 and LV5054 intercepted mineralisation outside of the existing JORC resource outline and are expected to increase the resource when resource modelling is completed in April, 2018. The better results included:

LV5047 1.00m at 16.30% Zn, 5.81% Pb, 35.60 g/t Ag
LV5049 1.00m at 13.70% Zn, 6.69% Pb, 25.60 g/t Ag
LV5052 2.20m at 7.81% Zn, 2.42% Pb, 14.90 g/t Ag
LV5054 0.50m at 19.20% Zn, 10.35% Pb, 31.70 g/t Ag
- and 3.10m at 18.80% Zn, 1.25% Pb, 13.22 g/t Ag

Holes LV5049, LV5050, LV5052 and LV5054 encountered mineralisation in the Cuesta Shales stratigraphic unit and are believed to representsheared feederzonesto the overlying mineralisation.

Geological Notes

Tres Amigos North (TRN) mineralisation is hosted in graphitic shales, in the immediate hanging wall to the Juarez Limestone. The TRN area is highly deformed, with both the shales and mineralisation exhibiting strong to isoclinal folding, while the more competent underlying Juarez Limestone displays only minimal shearing at the contact. It is possible that the TRN mineralisation pre?dates the deformation episode and represents a high?grade feeder zone that has been sheared and displaced from its original location. Deformation here is commonly folding with boudinages.

Figure 1. Plan view of Plomosas work areas and Mineral Resource outlines

Figure 2. Plan view of Tres Amigos drilling from Level 5 targeting extensions and infill of the Tres Amigos and Tres Amigos North resource mineralisation

Note 1: TW represents an approximate true width of the mineralisation based on structural assessment of contact information and drill orientations. TW is being recalculated in conjunction with resource modelling and interpretation. mdh: metres down hole

Note 2: TBA – Mineralisation intercepted and visually identified. Core logging and assays pending.

TRN has similarities to mineralisation in hole TRSDD010 that was drilled 400m to the south in 2016, without the deformation overprint. The upper portion appearsto have been subject to limited mining, and in a haphazard and inconsistent manner. Drilling will continue to define the mineralisation and the extensions that occur in the area.

Further drilling to test the high?grade mineralisation in hole LV5040 wassuccessful, with hole LV5054 intersecting 3.10m @ 18.80% Zn, 1.25%Pb and 13.22g/t Ag, 32 metres up?dip from the mineralised interval in LV5040. Unlike TRN, this mineralisation is hosted in the Juarez Limestone unit, and occurs 75 metres below Level 7.

LV5054 and LV5040 are the deepest new discoveries drilled by CZL, since the project was acquired in 2015. It appearsthat this mineralisation isthe continuation of the Tres Amigoszone, located 130m to the southeast. Plans are now to place a drill rig in Level 7 and commence a drill out to define this new area.

Figure 3. Massive sulphide mineralisation in the Cuesta shales intersected in LV5054 drill hole between 149.45 to 152.55 metres (3.1m). This 3.10m intercept is the deepest intersected by CZL to date and assayed at 18.8% Zn, 1.25% Pb and 13.22 g/t Ag.

Figure 4. Section AA’ of Tres Amigos drilling from Cuddy 5.4 targeting extensions and infill of the Tres Amigos and Tres Amigos North resource mineralisation. Interceptsin LV5039, LV5043 and LV5052 will be incorporated into the resource update.

Figure 5. Section BB’ of Tres Amigos drilling from Cuddy 5.4 targeting extensions and infill of the Tres Amigos and Tres Amigos North resource mineralisation. Note the outline of the resource shown is offsection and 120m up dip of LV5040 intercept and will be remodelled with latest information from LV5040 and LV5038.

Brad Marwood

Chief Executive Officer

ABOUT CONSOLIDATED ZINC

Consolidated Zinc Limited (ASX:CZL) is a mineral 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. To date a Mineral Resource has been estimated containing approximately 1 million tonnes grading 15.9% Zn+Pb for 154,000t of contained metal in Indicated and Inferred categories (ASX announcement 4 September, 2018). Current exploration is aimed at increasing the tonnage and improving the resource classification.

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, Mineral 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.

Original Article: http://www.consolidatedzinc.com.au/wp-content/uploads/2018/04/050418-Tres-Amigos-resource-drilling-update-1.pdf

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