September 2016, Quarterly Activities Report
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Drilling continues to identify additional mineralisation below Level 7
Consolidated Zinc Limited ("the Company") (CZL:ASX) is pleased to present the following quarterly report.
OPERATIONS AND DEVELOPMENT - PLOMOSAS PROJECT, MEXICO
CUEVITAS EXTENSIONAL DRILLING - LEVEL 7 DEEPS
Underground drilling and development continued in Level 7 during the quarter. 12 drillholes, LV7DD031 to LV7042 were completed in the quarter for 1,067.8m. Drilling continues to demonstrate that mineralisation extends over several hundred metres of strike and up to 80m down-dip. The progress of the drilling and results as they came to hand were provided in ASX announcements dated July 14 through to October 5, 2016, except for drillholes LV7036 to LV7040 which assays were received subsequently.
Of those later assays received, drillholes LV7037 (testing between Levels 7 and 6) and LV7038 intersected exceptional grades:
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ï‚· LV7037
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4.65m at
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55.51% Zn,
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29.54% Pb,
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105.15 g/t Ag
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and
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1.60m at
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38.52% Zn,
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12.53% Pb,
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43.09 g/t Ag
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ï‚· LV7038
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1.25m at
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37.92% Zn,
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3.36% Pb,
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31.67 g/t Ag
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Drilling highlights and assay results received for the quarter are summarised in Table 1, with further hole details in Table 2. Additional drillholes for which assay results are awaited are also included.
Figure 1 illustrates the spatial relationship of the intercepts to date within the mineralised horizon with the pierce points depicted as "grade x True width" symbols to illustrate the relative strength of these intercepts. This also illustrates the pinch and swell nature of the mineralisation which will become more obvious as the infill and extensional resource drilling program continues. The mineralised horizon highlighted in Figure 1 is for Level 7 only.
Figure 1: Planned and actual pierce point of holes drilled from Cuddies 7.1 and 7.2 showing strength of intercepts obtained.
Significantly, the drilling to date continues to demonstrate that high grade mineralisation extends below Level 7 (Figures 1-4) which, at approximately 240m below surface, was the deepest ore drive developed at Plomosas.
In addition, drillhole LV7037 has identified a new zone of mineralisation above Level 7 in a previously unmined area of the mine below Level 6. This demonstrates that although our focus is very much on the deeper extensions of the mineralisation, there are numerous opportunities within the existing mine environment to find additional areas that have previously been either ignored or previously deemed uneconomic for mining. This provides additional confidence for the ongoing investigations into the underground developments in sub-level 7 and sub-level 8.
A fourth drilling position at the southern end of the main production drive was completed towards the end of the quarter, notionally termed Drill Cuddy 8.1. Drilling from this position to extend the known mineralisation to the south will be a major push during the December quarter. The completed development for drilling positions on Levels 7 and 8 are shown in Figure 2.
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Table 1. LEVEL 7 DEEPS
Highlights of resource definition drilling results received
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Hole ID
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From (m)
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To (m)
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Inter section (m)
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TW* (m)
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Zn %
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Pb %
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Ag g/t
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Comment
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LV7031
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42.95
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44.45
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1.50
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0.60
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15.20
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3.60
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81.80
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Terminated in void
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LV7032
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39.6
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41.45
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1.85
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0.40
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11.86
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6.54
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23.47
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Thin semi-massive mineralisation.
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LV7033
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11.80
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13.30
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1.50
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1.14
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21.10
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11.80
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66.10
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Mineralisation outside the current defined envelope and down dip (additional 10m)
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LV7034
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45.70
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46.20
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0.50
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0.34
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6.93
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5.42
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19.23
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Hole intersected void at 46.2m ended in mineralisation
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LV7035
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NSI
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NSI
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NSI
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Hole drilled downdip of hole LV7034, intersected mine sequence, minor mineralisation
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LV7036
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NSI
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NSI
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NSI
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Hole drilled to NE to test for mineralisation, intersected mine sequence, minor diss sulphides
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LV7037
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103.90
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108.55
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4.65
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2.09
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55.51
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29.54
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105.15
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Mineralisation located between Level 6 and Level 7
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112.80
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114.40
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1.60
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0.71
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38.52
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12.53
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43.09
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LV7038
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44.00
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45.25
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1.25
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0.89
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37.92
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3.36
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31.67
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Drilled slightly off from LV7034 to test for mineralisation outside of fault void
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LV7039
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61.25
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62.75
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1.50
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0.89
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6.68
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2.89
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9.90
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Hole drilled below Level 7 stopes
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LV7040
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43.65
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44.45
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0.80
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0.72
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17.76
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10.40
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47.79
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Mineralisation intersected down dip of hole LV7DD022
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LV7041
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TBA
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TBA
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TBA
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Testing for continuation of mine sequence and flexures. Second target is Juarez Limestone
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LV7042
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TBA
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TBA
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TBA
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Drilled to NE testing sequence for extensions of mineralisation
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*TW is True Width and represents the best estimate of the intercept based on the geological interpretation of the sequence.
Figures 2a and 2b. Completed drill cuddy locations in Level 7 and sub level 8 which facilitates further drilling along strike and down dip extensions of massive sulphide mineralisation within the Main Manto Horizon
.