News: Consolidated Zinc's high-grade hits could mean early mining in Mexico

New assays from Consolidated Zinc’s (ASX:CZL) Plomosas project in Mexico have confirmed zinc grades in excess of 50% and lead-zinc grades nearing 60%, prompting the company to contemplate an early production scenario. 

Sampling from exploration at the project’s key Tres Amigos area returned 0.7 metres at 51.68% zinc and 59.79% combined lead-zinc from 43 metres as well as 1 metre at 46.45% zinc and 47.74% combined lead-zinc from 41 metres.

Silver grades at the prospect were as high as 40.2g/t over a 1-metre intersection.

The results are significant as Tres Amigos represents potential for additional mineralised zones in the limestone-rich units above and below Plomosas’ previously mined Main Manto horizon.

Notably, underground development has already been established to the horizon enabling ready access.

Subject to continued drilling success, scoping studies will begin to assess the economic viability of this mineralisation. It is expected the next phase of the drilling over the next 4-6 weeks will continue to improve understanding of the extent of the mineralisation and its geometry.

Should the results at Tres Amigos continue to deliver similar grades and widths, Consolidated Zinc plans to move rapidly towards considering the re-commissioning of an existing on-site plant in order to generate short-term cash flow from mining this zone as a standalone development opportunity.

The latest batch of assays follows quickly on confirmation of zinc grades higher than 30% in eight samples at Three Amigos.

Updated assays for previously drilled holes at the site include 4.7 metres at 42.28% zinc, 4.61% lead and 32.78 g/t silver from 39 metres along with 4.45 metres at 19.34% zinc, 1.67% lead and 15.25 g/t silver from 21.75 metres.

Records show the 3019-hectare Plomosas project to be in the global zinc industry’s upper quartile for grade, with about 1.7 million tonnes of ore having been mined since 1943, with average historical grades of 15-25% zinc and lead as well as silver grading 40-60 g/t and clean mineralogy.

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