Consolidated Zinc : Drilling confirms further high grades at Plomosas

• Drilling at Plomosas continues to define high grade zinc and lead sulphide mineralisation in deeper drilling
• Notable assay results confirm grades up to 50 per cent zinc and lead over significant widths up to 5.20m
• Mining contractor engaged to fast track development for additional drilling positions
• Detailed airborne magnetics and gravity surveys have commenced to identify drill targets for regional and near-mine exploration programs

Ongoing drilling at Consolidated Zinc Limited's (ASX: CZL; "Consolidated Zinc" or "the Company") Plomosas project in Mexico has confirmed the extension of massive sulphide mineralisation. The further high grade discoveries come from deeper drilling below the Company's level 7 mine development.

Visual results for holes LV7DD020 to 022 and LV7023 were previously reported and subsequent assay results confirmed those observations with grades up to 50% Zn and Pb over true widths up to 5.20m. Table 1 summarises the grades and intervals returned.

In addition, drill holes LV7024 and LV7026 were completed with the latter returning 8.50m (TW 3.02m) at 34.99% Zn, 15.40% Pb and 158.5 g/t Ag

Table 1 shows the assay result highlights from recent drilling with Table 2 providing full drill hole details. Hole LV7025 was abandoned when it hit a void while holes LV7027 to LV7030 were completed but assay results have not been returned. Visually, LV7027 returned NSI while LV7028 to LV7030 intersected narrow zones of massive sulphides.

Table 1. Recently received analytical results from drill position 7.2. Drillhole LV7025 was abandoned upon hitting a void and assay results are awaited for holes LV7027 to LV7030. Note high silver grades for holes LV7024 and LV7026.

In addition, the Company has engaged a local mining contractor, on a short-term basis, to fast-track underground development.

This will increase the number of drilling cuddy positions available for targeting mineralisation along strike and down dip of the current known positions. Figure 1 shows the current and proposed locations of additional underground development at Cuddies 7.2 (extended), 7.3 and 8.1.

Figure 1. Proposed development locations from Level 7 opening up the down dip and northern and southern extensions of the mineralisation.

The mineralisation encountered in drilling from Cuddy 7.2 occurs in the typical mine sequence of leached hangingwall shales.

Mineralised intervals occur along the hangingwall contact to the Main Manto, which also displays collapse breccias, into a zone of leached and vuggy marble with jarosite staining, through a massive brecciated marble and into the footwall shale units.

Drilling from the northern level 7 drill cuddy at L7.2 has confirmed that mineralisation in this northern zone remains thick along its strike until about the L7.2 access drive, where mineralisation rapidly thins and pinches, before reappearing and thickening again further to the north (Figure 2).

This is consistent with the geological model that anticipates pinching and swelling of the mineralisation based on mapping and previous mining up-dip.

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Figure 2. Drilling completed from Cuddy 7.2 with drilling results to date

Visual mineralisation comprising sphalerite and galena sulphides is noted in some recently drilled CZL holes to the north.

The Company plans to extend the drive from the L7.2 Cuddy to enable further deeper drilling to intersect mineralisation at a higher angle and extend the known zone of mineralisation down dip below Level 7.

Additionally, drives established while developing the L8.1 access drive showed a thick unit of mineralisation with sheared contacts to the hangingwall shales.

Large boudins of marble occurred in these shales in proximity to the massive sulphide units (Figures 3 and 4). These zones will be tested by drilling from L8.2 Cuddy.

Figure 5 shows the pierce points of drilling to date from Level 7 cuddies 7.1 and 7.2 as well the additional drilling proposed as part of the resource definition process. Relative metal content is illustrated by multiplying the true width of each intercept with the combined grades of zinc and lead. Hole and intercept details have been previously reported to the ASX and summarised in tables within this report.

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Figure 3. Thick massive sulphide mineralisation adjacent to the 8.1 drill cuddy turn-out

Figure 4. Boudin of marble and sulphide within the hangingwall shales at the 8.1 drill drive turn-out