Consolidated Zinc : 48% Zn & Pb received from Level 7 Deeps drilling

04c14999-5dfe-4041-8514-a63a56217c96.pdf 48% Zn + Pb received from Level 7 Deeps drilling

• Diamond drilling at Plomosas continues to encounter and expand sulphide mineralisation horizons at Level 7 Deeps.
• Assay results from LV7DD018 were received which included
  • 4.55m at 33.72% zinc, 14.32% lead and 82.2 g/t silver from 57.6mdh

Consolidated Zinc is pleased to announce continued success with drilling results for underground diamond drill hole LV7DD018 at the Plomosas mine, testing the Level 7 Deeps sulphide mineralisation (Figures 1, 2).

The completion of LV7DD018 was previously announced, but assays for the reported sulphide intercept have since been received.

LV7DD018

4.55m @ 33.72% Zn, 14.32% Pb and 82.2 g/t Ag from 57.6mdh Including: 1.00m @ 41.94% Zn, 16.90% Pb, 111 g/t Ag from 57.6 mdh

LV7DD018 was terminated at 62.15m and encountered massive sulphide mineralisation from 57.6m to end of hole.

Most drill holes from the deeps drilling program continue to intersect the sulphide mineralised horizons where forecast- within the typical pinch and swell structures which are clearly identifiable within the stratabound horizons. LV7DD018 is no exception and infills the mineralisation 20m NW of the section shown in Figures 3 and 4.

Figure 1. Plan view of the Plomosas mine showing location of the cross section in Figure 2 (trace A-A') and work areas referred to in the text including the drill drive access being established for the Main Manto Horizon drilling below Level 7.

Figure 2. Section view of the Plomosas mine through Cuevitas area (A-A') showing the Tres Amigos zone, historical drilling and the drilling planned for Main Manto Horizon below Level 7.

Table 1. Summary of drilling results received for Level 7 Deeps
Hole ID	From (m)	To (m)	Inter section (m)	TW* (m)	Zn %	Pb %	Ag g/t	Comment
Level 7 Deeps Drilling
LV7DD018	57.60 Comprises:	62.15	4.55	3.36	33.72	14.32	82.29	Massive sulphide. Hole terminated in abandoned workings.
	57.60	58.60	1.00	0.74	41.94	16.90	111.00
	58.60	59.60	1.00	0.74	36.41	16.85	97.10
	59.60	60.65	1.05	0.77	37.36	14.90	86.40
	60.65	62.15	1.11	1.11	23.90	10.50	50.40

*TW is True Width and represents the best estimate of the true width of the intercept based on the geological interpretation of the sequence.

Figure 3. Plan view of the Level 7 Deeps drilling drill trace and assays received to date

Geological setting

Level 7 Deeps

The characteristically brecciated Main Manto Horizon is the host to the mineralisation occurring in the Level 7 area and has been the main source of ore throughout Plomosas historical mining. Massive sulphides commonly occur on the contact zones between the hanging wall shales and the Main Manto. This contact is nearly always highly sheared. Immediately below this mineralised contact and within the Main Manto is a sequence of sheared marble with open spaced vuggy texture.

Individual units comprising massive sulphide mineralisation vary from 0.5m up to around 4m in places. On average the thickness is around two metres in the central zones and thins to the outside of the mineralised zone. It appears the massive sulphide mineralisation pinches and swells within a ductile shear zone which is expected to continue and thicken down dip with additional massive sulphide mineralisation. This is the typical and expected nature of this style of mineralisation.

Figure 4. Section view of the Plomosas mine through Level 7 drill drive showing the drilling completed and planned for the mineralisation of the Main Manto Horizon. Assays received and shown in the figure are from drill intercepts up to 50 metres to the NW and SE of the section.

Managing Director Will Dix commented "Another fantastic intersection, further confirming the high grade nature of the mineralisation below Level 7. This now completes the drilling from the first drill position in Level 7 and with drilling underway from our second drill cuddy approximately 200m to the north, we expect to be able to continue to release exciting results as they come to hand."

Yours faithfully,

Will Dix Managing Director