ConsZinc aims to get cracking in Mexico

MODEST Mexico zinc producer Consolidated Zinc has big ambitions to grow into a much larger company over the next couple of years.
ConsZinc aims to get cracking in Mexico ConsZinc aims to get cracking in Mexico ConsZinc aims to get cracking in Mexico ConsZinc aims to get cracking in Mexico ConsZinc aims to get cracking in Mexico

The Plomosas zinc mine in Mexico

The company mined 7000t of high grade ore (14.5% zinc and 6.5% lead) at the Plomosas operation in May and is aiming to reach 10,000t per month in the next month or two, with ore toll treated by a third party.

Production began last year and there have been teething issues.

That plus the softer zinc price sees ConsZinc's current capitalisation being little more than A$10 million.

Ultimately though, the belief is more than 500,000t of contained zinc (equivalent) can be defined, leading to development of a dedicated 500,000t per annum zinc and lead concentrator and potential annual earnings above US$30 million per annum.

Such is the prospectivity ConsZinc believes such resources could be defined over the next couple of years via exploration expenditure of as little as $5 million.

If the prospectivity is indeed realised ConsZinc MD Brad Marwood and his shareholders could be much happier than they are today, with Marwood strongly incentivised by his board to achieve a plus-A$100 million market cap by the end of 2021.

Still, it's all to do.

Shares in ConsZinc were trading at 1.1c this week, capitalising the company at about $12 million.

Meanwhile, the company is also said to be actively looking for a second project/operation that can utilise the company's skills and reduce the risk of being a single mine company.