Consolidated Zinc Limited (ASX: CZL or “the Company”) is pleased to announce its Maiden Ore Reserve at the Plomosas Mine. The underground design and modifying factors have been applied by Cube Consulting Pty Ltd (“Cube”) to the Plomosas Mineral Resources.
The Total Proven and Probable Ore Reserves based the current Mineral Resources as depleted 31 December 2018 for the Plomosas Mine are 73,850 tonnes at 13.82% Zinc, 2.38% Lead and 17.86g/t Silver.
The modifying factors applied to the Mineral Resources include but not limited to the following parameters:
Zinc Price: US$3,000/t;
Lead Price: US$2,200/t;
Silver Price: US$16.50/oz;
Mexican profit based royalty tax: 7.5%
Resource Model: Mineral Resource Model as announced to the ASX on 30 April, 2018 and depleted as at 31 December 2018.
Ore Based Costs: The operating costs are based on the actual operating costs as seen at site developed over the past 6 months of operating.
Worthy of note is that a Net Smelter Return (NSR) cut-off of US$108.86/t for mine design purposes when building the Ore Reserves. The Stage 1 costs are based on the start-up production rate of 35,000tpa operations while Stage 2 production rate is 120,000tpa production rate.
Stoping has been costed at US$29.85/t ore mined
Development costs have been estimated at US$6.50/t ore mined
Geotechnical Parameters: The Underground conditions have been assessed and the recommendations for ground support and openings incorporated into the designs. Ore losses 11% while waste dilution will be minimal. The ground is considered competent and will require regular spot bolting and occasional meshing where openings are larger at tunnel intersections.
For and on behalf of Consolidated Zinc Limited.
Consolidated Zinc Limited (ASX: CZL) owns 90% 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 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 Person Statement:
The information in this report that relates to Ore Reserves is based on, and fairly represents information and supporting documentation prepared by Mr Brad Marwood, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy and Member of the Australian Institute of Geoscientists. Mr Marwood is a Director and full-time employee of the Company. Mr Marwood has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Marwood has approved the Statement as a whole and consents to its inclusion in this report in the form and context in which it appears.
The information in this report that relates to Mineral Resources is based on, and fairly represents information and supporting documentation prepared by Mr Andrew Richards, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and Member of the Australian Institute of Geoscientists. Mr Richards is a Director of the Company. Mr Richards has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Richards has approved the Statement as a whole and consents to its inclusion in this report in the form and context in which it appears.
The information in this report that relates to the Mineral Resources were first reported by the Company in compliance with JORC 2012 in market release dated 30 April 2018.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the market announcements referred to above and further confirms that all material assumptions and technical parameters underpinning the ore reserve and mineral resource estimates contained in those market releases continue to apply and have not materially changed.