Consolidated Zinc : Investor Update – May 2016

PowerPoint Presentation

I CONSOLIDATED ZINC LID

The Company

Capital Structure (ASX:CZL)		Board and Management
Shares on issue (approx)	255,993,847	Stephen Copulos - Non Executive Chairman Will Dix - Managing Director Andrew Richards - Executive Director Luis Rogelio Martinez Valles - Non Exec Director Andrew Beigel- Company Secretary Steve Boda - Exploration Manager
Total options on issue including listed options	57,329,310 23,350,152
Available Funds as at April 7	$2,500,000^
Share Price	$0.045
Approx Market Cap (undil)	$11.2 million
EV	$7.3 million
Major Shareholders	^CZL entered into a A$2.2M draw down facility with Funan Group, an experienced trading Group based in Singapore to fast track the resource drilling at Tres Amigos and follow up resource estimation work.
Copulos Group			22.9%*
Mexican Vendors			9.8%
Retzos Group			9.7%*
Farjoy Pty Ltd	6.4%*

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The Project

CZL owns 51% of the high grade Plomosas Zn-Pb-Ag mine in Mexico

With the rights to acquire up to 80% interest (and ultimately 100%) for additional $750,000 cash and $1,700,000 shares.

Plomosas - Key Project Attractions

• Multiple, very high grade Zn-Pb-Ag deposits grading 18-25% Zn+Pb with 60g/t Ag;

• Granted Mining Leases (to 2042) - partly permitted - 4-6 month process

• Significant additional exploration upside with immediate drill targets and 7Km strike;

• A near term production asset with UG access to mineralisation already established;

• Excellent infrastructure;

• Historically clean mineralogy and high metallurgical recoveries;

• Low cost and low capex mining and processing options (TBC).

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Location

Plomosas Location

• 2 hour flight from Dallas/Houston;

• 110 Km from Chihuahua City (95Km on state highway);

• 7 Km from established grid power

  Chihuahua Province

• World class mining province;

• Experienced work force;

• The country's largest zinc producing state.

  Mexico

• Favourable regulatory environment allows 100% ownership for foreign companies;

• Ranked #5 in world for mining investment (2015);

• Ranked #6 for zinc production (2014).

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  Simple Geology

• Shale-limestone units deposited at the margins of the major

  Chihuahua sedimentary basin.

• Deposits formed by mineralised fluids migrating through district scale structures and replacing carbonate units in the shale-limestone sequence, affinities to MVT-style.

• Mineralisation is confined to identifiable stratigraphic horizons

  as:

• Low angle, stratiform sheets of mineralisation at several limestone-rich horizons in the sequence (mantos), or

• High angle, crosscutting mineralised bodies in linking

  structures (chimneys).

• Replacive-style endo-skarns related to shearing within carbonate hosts.

  Massive orebodies are found in groups with individual dimensions comprising:

• Strike lengths from tens to several hundred metres, and

• Thicknesses from 0.5m to 15m (average ~3 - 4m)

  SANTA EULALIA MINE

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  Mining history 1945-1974

• ASARCO Grupo Mexico operated until 1974.

  Mined 2.5Mt ore at 24% Zn+Pb and 80 g/t Ag;

• Up to 20,000t ore per vertical metre;

• Martinez family owned since 1978

• Intermittent remnant mining since 1978 focused only on mineralisation above level 5 (131 mbs). Never dewatered;

• 3 shafts and multiple declines established and capable of extracting up to 1,000tpd (SRK report)

• Historical concentrate information indicates very clean product and good recovery

  • No deleterious elements (cadmium, mercury, arsenic etc)

  • Highly sought after as a blending concentrate.

  • Established off-take agreement expires June.

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  CZL Work to Date

• Completion of whole of mine dewatering;

• Ongoing geological mapping, sampling and surveying - Building on 3D model;

• Identified new mineralisation in footwall - Tres Amigos (TA);

• Drilling TA from underground phase 1 complete - high grades, variable thickness;

• Surface drilling ongoing to determine dip and strike extensions;

• Rehab complete in Level 7, developing additional drives for drilling positions;

• Confirmed mineralisation below Level 7 - significant de-risking step;

• Initial metallurgical sampling complete;

• Drilling on-going.

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  Exploration Areas

  • Underground Sampling areas showing the widespread nature of the high grade mineralisation;

  • Importantly no exploration drilling has been carried out below Level 7 and sub-levels;

  • Drilling at depth from Level 7 underway.

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  Exploration Targets

  Zinc-Lead-Silver targets

  Prospective mineralised horizon upto 40mthickdipsatlowto moderate angles(Main Manto Horizon).

  • Mineralised sequencewithinhorizon averages over 3m;

  • Plomosasconcessionscontain over 6kmstrike of the mineralised horizon(s). Under-explored and requires drill testing;

  • Expectadditionalmineralisation downdipandas repetitions alongstrike, orhigher/lower insequence.

  INITIAL EXPLORATION TARGET*

  2.8-3.2 Mtat 15%-25% Zn+Pband 60-80gt Ag.

  Downdipandalongstrike of existingmine workings

  *Doesnotinclude TA mineralisation identified todate.

  Theexplorationtargetisconceptualinnatureandthereisnocertaintythatitwillberealised.Furtherdrilling isrequiredtodetermineamineralresource.

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  Level 7 Drilling

  Semi-Oxide and Sulphide Zone

  Mapping and exploration work shows that mineralisation extends down dip from the upper levels down to Level 7 and sub-level Level 9 with no termination visible

• Some semi-oxide mineralisation exists due to late-stage

  brittle fracturing confined to a zone. Majority sulphides;

• New geological model suggests orezone is boudinaged within a larger persistent shear zone, hosted within the manto;

• Current mineralised zone is +400m in length, plunging to the south-east;

• Historic assay values returned ave grades of 14 % Zn. Recent sampling returned ave of 32.8% Zn.

• Completed drilling orezone from hangingwall access drive 1

• Access drive 2 is complete and drilling will start May 3

• 3rd access drive planned and clean-up/rehab underway

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Level 7 Drilling

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