Consolidated Zinc – Quarterly Activities Report, September, 2019

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301019-Quarterly-Activities-Report

  • Completed 100% acquisition of Plomosas in September 2019, acquiring the remaining 10% interest, in exchange for a 1.0% net smelter return royalty
  • First full quarter of production from the third party Aldama concentrator, processed up to 266 tonnes ore day during September
  • 7,511 tonnes ore mined during the quarter grading 13.5% zinc and 8.2% lead, down from the June quarter as the Company processed significant ore stockpiles
  • 9,120 tonnes of ore processed at 12.5% zinc and 7.9% lead, down from the June quarter due to one off events (power outages, high lightning strikes)
  • Payable metal sold of 773 tonnes of zinc, 273 tonnes of lead and 854 ounces of silver in concentrate, up from the June quarter as the Company sold down stockpiles
  • Significant stockpiles remained on hand at quarter end which will be realised in the December quarter;
    • 4,424 tonnes of high-grade ore stockpiled for processing
    • 256 tonnes of zinc concentrate, and 106 tonnes of lead concentrate stockpiled and available for sale
  • C1 cash cost of payable zinc sold $1.01/lb, primarily higher than the June quarter due to the temporary increase in development costs incurred to access the high-grade SOX orebody in the December quarter and an industry wide increase in smelter treatment charges
  • Significant operational improvements at the mine and processing plant have resulted in positive cash flows generation from the Plomosas operations in October
  • Drill plans finalised to follow up LV5040 which identified 3.75m (TW) at 37.5% Zn+Pb potential extension of mineralisation down dip of the current JORC resource.
  • Completed a Placement to new institutional and sophisticated investors at A$0.011 per share to raise A$1.0 million (before costs)
  • Announced a fully underwritten non-renounceable Rights issue of 1 new share for every 6 shares held at A$ 0.011 per share to raise A$2.48 million (before costs)- completed post quarter end
  • Pro-forma cash balance at quarter end A$2.7 million incorporating gross proceeds from the Rights Issue

All references in this report are to US$, unless otherwise stated.

Consolidated Zinc Limited (CZL:ASX or “the Company”) is pleased to present its September 2019 quarterly activities report.

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