Consolidated Zinc : Tres Amigos Resource Drilling Update

 LV5023

1.75m at

9.43% Zn,

1.67% Pb,

9.33 g/t Ag

 LV5024

0.95m at

10.95% Zn,

6.70% Pb,

22.70 g/t Ag

and

0.55m at

31.25% Zn,

0.25% Pb,

8.60 g/t Au

Table 1. Highlights of drilling assays returned from Tres Amigos North (TRN)

Hole No

Depth From (m)

Depth To (m)

D'hole Width (mdh)

True Width1 (m)

Zn %

Pb %

Ag (g/t)

Comment

LV5018

145.95

147.80

1.85

1.50

32.60

0.28

11.07

Massive sulphide within dilational structure

205.55

206.05

0.50

0.50

3.61

0.30

2.90

Vein hosted sulphide mineralisation

LV5019

NSI

NSI

NSI

LV5020

NSI

NSI

NSI

LV5021

NSI

NSI

NSI

LV5022

146.45

146.95

0.50

0.40

3.81

0.98

9.20

LV5023

85.05

86.80

1.75

1.75

9.43

1.67

9.33

Massive Zn-rich sulphides within Juarez Unit

126.90

127.75

0.85

0.85

4.38

0.28

6.90

Dilatant Zn-rich zone within Juarez Unit

LV5024

103.20

104.15

0.95

0.90

10.95

6.70

22.70

Mass Sulph within Juarez Unit

114.00

115.00

1.00

0.95

3.69

0.01

0.90

Semi patchy zone of sulphide mineralisation

181.25

181.80

0.55

0.50

31.25

0.25

8.60

Massive sulphides in lower part of Juarez Unit

LV5025

119.35

121.05

1.70

TBA

TBA

TBA

TBA

Semi-massive and vein hosted mineralisation

LV5026

183.05

186.10

3.05

TBA

TBA

TBA

TBA

Semi-massive mineralisation

209.45

210.20

0.75

TBA

TBA

TBA

TBA

Semi-massive mineralisation

LV5027

NSI

NSI

NSI

LV5028

NSI

NSI

NSI

LV5029

NSI

NSI

NSI

Table 2. Plomosas Drill hole details - Latest drilling Tres Amigos North area (all UG diamond holes)

HoleID

Easting WGS84

Northing WGS84

Elev (m)

Dip

Azimuth WGS

Total Depth (m)

LV5013

476248.73

3216727.66

992.79

-49.10

340.65

210.95

LV5014

476248.77

3216727.49

992.43

-66.00

340.05

275.10

LV5015

476248.50

3216727.80

993.51

-17.20

340.74

235.35

LV5016

476248.40

3216727.50

993.34

-32.50

314.04

181.30

LV5017

476248.47

3216727.43

993.13

-34.40

358.54

134.70

LV5018

476253.36

3216726.46

992.28

-54.10

53.64

213.95

LV5019

476251.89

3216727.69

992.21

-53.90

13.44

171.80

LV5020

476253.93

3216724.24

992.39

-48.50

87.93

234.90

LV5021

476249.30

3216728.45

992.46

-50.90

358.63

176.30

LV5022

476248.15

3216727.20

992.73

-48.50

317.03

185.30

LV5023

476247.39

3216722.51

992.46

-84.50

255.83

170.50

LV5024

476251.17

3216724.79

992.65

-70.00

55.00

241.00

LV5025

476252.07

3216724.36

992.32

-70.00

87.82

203.80

LV5026

476251.64

3216721.97

992.45

-55.70

140.72

272.30

LV5027

476248.09

3216727.11

993.02

-41.80

327.42

215.40

LV5028

476248.11

3216727.07

992.55

-56.80

327.31

206.25

LV5029

476521.09

3216975.65

912.40

-71.00

160.00

170.50

Indicated Mineral Resource

Prospect

Tonnage Zn Pb Ag

t % % g/t

Zn Pb Ag

t t Oz

Level 7

99,000 19.3 9.0 57.9

19,000 9,000 183,000

Total

99,000 19.3 9.0 57.9

19,000 9,000 183,000

Inferred Mineral Resource

Prospect

Tonnage Zn Pb Ag

t % % g/t

Zn Pb Ag

t t Oz

Level 7 Tres Amigos

220,000 11.0 5.2 32.0

250,000 11.3 1.7 13.7

24,000 11,000 226,000

28,000 4,000 110,000

Total

470,000 11.2 3.4 22.2

52,000 16,000 335,000

Total Mineral Resource

Prospect

Tonnage Zn Pb Ag

t % % g/t

Zn Pb Ag

t t Oz

Level 7 Tres Amigos

318,000 13.6 6.4 40.0

250,000 11.3 1.7 13.7

43,000 20,000 409,000

28,000 4,000 110,000

Total

568,000 12.6 4.3 28.4

71,000 25,000 519,000

Criteria

JORC Code explanation

Commentary

Sampling techniques

• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

• Aspects of the determination of mineralisation that are Material to the Public Report.

• In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

• Sampling of cut channels was conducted by locating a one metre sampling line, using spray paint across mineralisation and ensuring that the line began in hanging wall host, spanned mineralisation and terminated in footwall host. Where mineralisation was thicker than one metre, the line was adjusted accordingly. This was done to minimise the bias of the sample value. Channel sampling was then completed, using the line as a guide, without sampling the line itself. As much representative sample was taken from the length of the line to produce a two to four kilogram sample. For this level of exploration, the sample size and method of sampling was deemed adequate to represent in-situ material.

• Drilling sampling techniques employed at the Plomosas underground drilling program include saw cut NQ drill core samples.

• Only NQ triple tube core (NQ3) is currently being used to drill out the geological sequences and identify zones of mineralisation that may or may not be used in any Mineral Resource estimations, mining studies or metallurgical testwork.

• Diamond NQ3 core was sampled on geological intervals/contacts, with the minimum sample size of 0.5m and max 1.2m.

• Core was cut in half, with one half to be sent for analysis at an accredited laboratory, while the remaining half was stored in appropriately marked core boxes and stowed in a secure core shed. Duplicates were quarter core, sampled from the half sent for analysis.

Drilling techniques

• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

• Currently NQ3 triple tube using conventional wireline drilling is being used.

• Core is being routinely orientated where possible, every 5th run (a run being 1.5 metres in length) using the Reflex ACT II RD core orientation system.

Drill sample recovery

• Method of recording and assessing core and chip sample recoveries and results assessed.

• Measures taken to maximise sample recovery and ensure representative nature of the samples.

• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

• Diamond core was reconstructed into continuous runs where possible, in an angle iron cradle for orientation mark ups. Depths were checked against drillers blocks and rod counts were routinely carried out by the drillers.

• The use of triple tube improved core recovery.

• Measurements for core recoveries were logged and recorded on hard copy sheets, which were then loaded into excel sheets and sent for data entry. These measurements, in combination with core photography show the overall recoveries vary between 50-95%.

• Due to the nature of the geology and the presence of large open-spaced breccias present in the vicinity of the mineralisation, the recovery of the mineralised core has been in some cases

Criteria

JORC Code explanation

Commentary

triple tube in these areas will not improve recovery.

Logging

• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

• The total length and percentage of the relevant intersections logged.

• CZL system of logging core records lithology, mineralogy, mineralisation, alteration, structure, weathering, colour and other primary features of the rock samples.

• Logging is both qualitative and quantitative depending on the field being logged.

• All drill holes are logged in full to end of hole.

• Diamond core is routinely photographed digitally

Sub-sampling techniques and sample preparation

• If core, whether cut or sawn and whether quarter, half or all core taken.

• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

• For all sample types, the nature, quality and appropriateness of the sample preparation technique.

• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

• Whether sample sizes are appropriate to the grain size of the material being sampled.

• CLZ diamond core is NQ3 size, sampled on geological intervals (0.3 m to 1.2 m), sawn in half or quartered if duplicate samples are required.

• Samples to be submitted to ALS Chemex for preparation. The sample preparation follows industry best practice where all drill samples are crushed and split to 1kg then dried, pulverized and (>85%) sieved through 75 microns to produce a 30g charge for 4- acid digest with an ICP-MS or AAS finish. A split will be made from the coarse crushed material for future reference material.

• Field duplicates are routinely taken for core samples. CZL procedures include a minimum of one duplicate per approximately 20 samples.

Quality of assay data and laboratory tests

• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

• All drill samples were submitted to ALS Laboratories for multi-element analysis using a 30g charge with a multi-acid digest and ICP-MS or AAS finish (ME- ICP61). Over the limit results will be routinely reassayed by ore grade analysis OG62. Over the limit results for the ore grade will be reassayed by titration methods Cu-VOL61, Pb-VOL50 or Zn- VOL50.

• Analytes include 51 elements and include Ag, Au, Cu, Pb, Zn as the main elements of interest.

• QAQC protocols for all drill sampling involved the use of Certified Reference Material (CRM) as assay standards. The insertion of CRM standards is visible estimation with a minimum of two per batch. Geostats standards were selected on their grade range and mineralogical properties.

• Blanks are inserted at the bottom of relevant mineralised zones using the fine certified blank and immediately later the coarse blank, to identify any potential cross contamination.

• All drill assays were required to conform to the procedural QAQC guidelines as well as routine laboratory QAQC guidelines.

Verification of sampling and assaying

• The verification of significant intersections by either independent or alternative company personnel.

• The use of twinned holes.

• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

• Discuss any adjustment to assay data.

• Significant drilling intersections are noted in this report and are verified by qualified personnel from geological logging.

• No twinned holes are being drilled as part of this program.

• CZL logging and sampling data was captured and imported using excel sheets and data entered into Micromine.

• All CZL drillhole and sampling data is stored in a Micromine based system. Manual backups are

Criteria

JORC Code explanation

Commentary

routinely carried out.

Location of data points

• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

• Specification of the grid system used.

• Quality and adequacy of topographic control.

• Underground drill holes were located by Micromine using accurately surveyed drives and stopes. Once drill holes were located, mine survey crew resurveyed the cuddy and the hole locations. A final collar survey will be finalised when the holes are completed.

• Down-hole surveys were taken at a nominal 30m interval and a final survey was taken at end of hole using a Reflex EZ-TRAC digital camera.

• Grid system used is WGS84 Zone 13

Data spacing and distribution

• Data spacing for reporting of Exploration Results.

• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

• Whether sample compositing has been applied.

• Hole spacing is currently limited by the confinements of the underground drives. Azimuths of holes are planned so significant intersections have adequate spacing between them to allow sufficient geological and grade continuity as appropriate for inclusion in any Minerals Resource estimations. Where underground access drives allows, drill cuddies have been established at 80 metre intervals to allow for adequate drill spacing.

• No sample compositing has been applied

Orientation of data in relation to geological structure

• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

• Drill orientations was designed to intersect any geological or geophysical contacts as high an angle as possible to reflect true widths as possible.

• Sampling has been designed to cross structures as near to perpendicular as possible, minimising any potential in creating a bais sampling orientation.

Sample security

• The measures taken to ensure sample security.

• Samples were bagged in pre-numbered plastic bags into each bag a numbered tag was placed and then bulk bagged in batches not to exceed 25kg, into larger polyweave bags, which were then also numbered with the respective samples of each bag it contained.

• The bags were tied off with cable ties and stored at the core facility until company personnel delivered the samples to the laboratories preparation facility in Chihuahua.

Audits or reviews

• The results of any audits or reviews of sampling techniques and data.

• No audits have been completed to date, but both in- house and laboratory QAQC data will be monitored in a batch by batch basis. All protocols have been internally reviewed.

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

• Sampling was conducted over three adjoining tenements, La Verdad (T-218242), El Olvido (T- 225527) and Ripley (T-218272).

• Consolidated Zinc Ltd currently owns 51%

Exploration done by other

• Acknowledgment and appraisal of exploration by other parties.

• No relevant information is available.

Criteria JORC Code explanation Commentary

parties

Geology

• Deposit type, geological setting and style of mineralisation.

• Plomosas is located in a historic zinc-lead-silver mining district, with mineralisation hosted by a Palaeozoic sequence of shales, argillaceous limestones, reefal limestones, 'conglomeratic' limestones and sandstones. This approximately 1600 metres-thick carbonate-rich sequence forms part of the Ouachita "Geosyncline", which was inverted in a thrust deformation phase during the Upper Palaeozoic Appalachian Orogeny.

• Characteristics of the deposit lead to the classification as an IRT III type mineralisation (Intrusive Related type III deposit) but may have some distal style affinities.

• The control on mineralisation is both lithological and structural, but local structural bending of the manto is very important as it is strongly folded in a relatively regular pattern, oriented north/north- west to west/north-west striking. The segment of the fossiliferous horizon with the best potential is north/north-west striking with a south-east plunge. The N/NW orientation of sections of the stratigraphy (due to folding) is considered important in localising mineralisation.

• The mineralogy is simple, consisting of iron- poor sphalerite, galena, silver, pyrite, chalcopyrite, barite, and calcite. The ore bodies are hosted by shale and marble on the footwall and hanging wall respectively. Intense marblisation is restricted to a few meters from the hanging wall contact.

Drill hole Information

• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

• easting and northing of the drill hole collar

• elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

• dip and azimuth of the hole

• down hole length and interception depth

• hole length.

• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

• Appropriate information has been included in the report.

Data aggregation methods

• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

• The assumptions used for any reporting of metal equivalent values should be clearly stated.

• No data aggregate methods were applied to the results.

Criteria

JORC Code explanation

Commentary

Relationship between mineralisation widths and intercept lengths

• These relationships are particularly important in the reporting of Exploration Results.

• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

• No drilling was completed to enable any relationship between mineralisation width and intercept lengths

Diagrams

• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

• Appropriate diagrams are attached in the report

Balanced reporting

• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

• All sample results are reported

Other substantive exploration data

• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

• No other relevant data has been reported

Further work

• The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

• Appropriate information has been included in the report.

Criteria

JORC Code explanation

Commentary

Database integrity

• Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.

• Data validation procedures used.

• Geological and field data is collected using customised logging software on tablet computers. The data is validated by company geologists before the data is sent to Expedio data management consultants. The validated data is stored in Expedio's standardised SQL Server Database Schema. The data is exported by Expedio and sent to RPM in Access format prior to Mineral Resource estimation in Surpac.

• RPM performed initial data audits in Surpac. RPM checked collar coordinates, hole depths, hole dips, assay data overlaps and duplicate records. Minor errors were found, documented and amended.

Site visits

• Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

• If no site visits have been undertaken

• A site visit was conducted by Shaun Searle of RPM, a representative of the Competent Person for Mineral Resources, during November 2016. The site visit included inspection of the geology,