Consolidated Zinc starts mining in Mexico
PERTH (miningweekly.com) – ASX-listed Consolidated Zinc will immediately start mining at its Plomosas zinc/lead/silver project, in Mexico, after inking a processing and offtake agreement with Grupo Mexico.
Under the terms of the agreement, Grupo Mexico will process Plomosas ore through its plant at Santa Eulalia, and sell the resulting concentrate to its Potosi smelter.
The Plomosas feed will be batched through the plant for a few days each month in batches of 2 500 t, and the agreement will be reviewed each year after the first trial month batch.
Consolidated Zinc said on Tuesday that the agreement with Grupo Mexico would allow the company to start production for a minimal start-up capital expenditure, and fast-track first revenues from the Plomosas mine.
“The board’s decision to commence mining, having secured toll treatment and concentrate offtake agreements is a low-risk, fast return option that will see mining re-established for a low capital cost,” said CEO Brad Marwood.
“Toll treatment through a proven process plant provides benefits from the efficiencies of scale and eliminates permitting and construction delays and costs. We expect to bed down the operations quickly to enable ongoing exploration that will support production for the coming years.”
Mexican mining contractor Sevimin Sara will initially mine 3 000 t of high-grade mineralisation in the first month at Plomosas, ramping up to 7 500 t/m by the end of December. October will be the first full month of high-grade feed delivered to Santa Eulalia.
Consolidated Zinc has secured a finance package by way of convertible notes that will enable the company to start mining and meet its capital requirements, until the operations deliver cash flow.
Convertible notes will be issued to the company’s chairperson and existing major shareholders worth A$1-million and A$250 000 respectively. The notes will be convertible subject to shareholder approval, at a share price of between 1c and 1.5c, depending on the timing of the conversion.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation