Consolidated Zinc : Sampling Defines New High Grade Area at Las Espadas West

Sampling Defines New High Grade Area at

• Additional high-grade zinc and lead mineralisation has been identified from mapping and sampling of the La Espadas West area located in the north part of the mine;
• Both Las Espadas East and West mineralisation are accessible via Level 5 workings;
• 29 rock chip channel samples were taken over 90m strike of massive and semi- massive sphalerite and galena mineralisation;
• High grade results returned values of 50.22%, 49.13% and 40.18% Zn+Pb combined along with 35.6g/t, 49.9g/t and 32.4g/t Ag, respectively.
• Results provide new evidence that improved structural understanding of the deposit is resulting in the identification of additional mineralisation at Plomosas.

  Consolidated Zinc Ltd (CZL) is pleased to announce that new results from the underground mapping and sampling program has defined additional high grade zones of mineralisation from the Las Espadas West stope area. The zone is located 60 metres to the west of the Las Espadas (now called the Las Espadas East) area, as announced by CZL on the 4th of July 2017.

  The Las Espadas area has been exposed and mapped in workings on Level 5 but was largely untouched by historical mining.

  Systematic rock channel chip samples were taken during mapping of the Las Espadas West Zone over 90 metres of continuous exposure and 29 samples were submitted for assay. Significant high grade results returned from the sampling and are shown in Table 1.

  Table 1. Las Espadas West channel sampling of mineralised massive sulphide zone
  Sample No	Int (m)	Combined Zn+Pb (%)	Zn%	Pb%	Ag%	Rocktype
  38040	1.0	25.75	22.2	3.55	19.9	Massive sulphides zone
  38043	1.5	42.00	28.8	13.2	41.4	Massive sulphides zone
  38049	0.5	33.84	29.36	4.48	31.4	Massive sulphides zone
  38052	0.5	30.18	21.4	8.78	27.4	Massive sulphides zone
  38056	0.8	28.28	8.93	19.35	40.2	Massive sulphides zone
  38057	1.2	49.13	36.33	12.8	49.9	Massive sulphides in pillar (confirmation sampling)
  38058	1.5	50.22	37.92	12.3	35.6	Massive sulphides in pillar (confirmation sampling)
  38064	1.0	40.18	33.25	6.93	32.4	Massive sulphides hosted in marble
  38065	1.0	17.92	9.96	7.96	17.9	Marble with patches of semi-massive sulphides
  38067	0.8	16.94	9.96	6.98	17.1	Massive sulphides hosted in marble
  38068	1.0	31.25	20.4	10.85	25.3	Marble with patches of massive sulphides

  Figure 1. Plomosas project location plan showing currently defined JORC Mineral Resources, workings and newly confirmed La Espadas area

  Figure 3. Photo of the massive sulphide from sample 38043, results are 28.8% Zn, 13.2% Pb, 41.4g/t Ag taken from wall exposure

  Figure 2. Sample 38040 runs 22.2% Zn, 3.55% Pb, 19.9g/t Ag. Sample taken from massive sulphide exposure along the walls

  A total of 11 samples were taken in massive sulphide zones:

• Channel sample lengths vary from 0.5m to 1.5m (average of 1.0m)

• The average grades returned were 23.50% Zn, 9.74% Pb, 30.77g/t Ag, with a combined value of 33.24% Zn+Pb.

• Of the 11 samples, 6 returned >30% Zn+Pb combined with a peak value of 49.13% Zn+Pb combined.

Figure 4. Location and assay results for the Las Espadas East and West Zones

Mineralisation at Las Espadas East and West Zones are associated with the Mina Veija Marble, which is the main marble unit responsible for hosting the high grade ore, mined previously by Grupo Mexico.

Mapping at Las Espadas East and West has defined a series of folds, with hinges running parallel at around 330O to 340O which is sub-parallel to the strike of the main thrust zones of Plomosas. An open Synform has been noted in Las Espadas East, associated with thick units of massive sulphides, up to

2.5 metres in thickness. Footwall mineralisation is thickest in the fold hinges in the Las Espadas East