CZL hits commercial production

SMALL-scale miner Consolidated Zinc says operations at its recently revitalised Plomosas zinc-lead-silver mine in Mexico are expanding according to plan, with the company achieving commercial production during December after mining resumed in September. 
CZL hits commercial production CZL hits commercial production CZL hits commercial production CZL hits commercial production CZL hits commercial production

Haydn Black

Reporter

Despite a Christmas shutdown, ore production for the month was 4072t at grades of 10.2% zinc and 2.4% lead, with two new stopes open and the decline advancing from the 992m RL towards the towards 972m RL where a further five stopes will be developed to deliver 35,000t of ore. 
 
The stops are also expanding into areas outside the current JORC resource of 1.2 million tonnes grading 14.3% zinc and 2.6% lead.
 
There was improved availability of equipment and more equipment brought to site last month, and the company is tipping further improvements in January.
 
The company has started trucking some 3000t of high-grade ore to surface from the deeper Level 6 stope.
 
The company reported that Grupo Mexico's Santa Eulalia concentrator achieved higher than expected recoveries of 89% zinc and 86% lead on Plomosas ore.
 
The first invoice is expected to be paid next week. 
 
ConsZinc will use the funds generated to bankroll exploration over ground seen as ultimately having large potential for a standalone development, which would require a A$5 million mill refurbishment.
 
Redevelopment of the mine had a projected capital cost of just US$500,000 and it expects C1 operating costs to be less than 50c/lb zinc after by-product credits.
 
The company, which increased its ownership of Plomosas from 51% to 90% last month for a cash payment of $750,000 plus the issue of 1.7 million shares.
 
Shares in the company were steady at A1.7c this morning, valuing the company at almost $20 million.

topics

loader