- Minerals explorer Consolidated Zinc (CZL) is set to recommence operations at its Plomosas mine and Aldama processing facility in Mexico
- A Presidential Decree has granted the right to miners across the country to resume operations, as the sector is now deemed an essential service
- Consolidated Zinc will start ramping up production at the site from May 18, with full production expected to resume by the end of the month
- The company used the hiatus to enact a number of operational streamlining initiatives, bringing in a number of efficiencies which are expected to enhance the Plomosas workflow
- It is now projected operations will restart at a lower cost base
- Consolidated Zinc has enjoyed a little 0.1 cent jump off the back of today’s news, to be priced at 0.4 cents per share by market close
Minerals explorer Consolidated Zinc (CZL) is set to recommence operations at its Plomosas mine and Aldama processing facility in Mexico.
Start me up
A Presidential Decree has granted the right to miners across the country to resume operations, now deeming the sector an essential service.
Consolidated Zinc will start ramping up production at the site from May 18, with full production expected to resume by the end of the month.
A skeleton staff of essential employees had remained at the site through the shutdown, but operations will have to resume incrementally as other employees return to Plomosas amid ongoing movement restrictions across the country.
Gimme shelter
The Mexican government shut down all non-essential services, including CZL’s operations, in early April as a precaution against the spread of COVID-19.
While the original stop-work orders were only meant to last a few weeks, they were extended and expected to last until late May.
Consolidated Zinc took the opportunity to enact a number of operational streamlining initiatives during the hiatus, bringing in a number of efficiencies which are expected to enhance the Plomosas workflow.
The company repaired and upgraded key equipment, while also renegotiating contracts to lower overheads, leading to expected savings and operational enhancements which should reduce mining and processing costs.
It is now projected operations will restart at a lower cost base.
Satisfaction
The company reports it has introduced new safety and hygiene protocols to mitigate any risk of COVID-19 spread while workers return to site.
Once the mine and processing plant are fully operational again, CZL can once again concentrate on furthering its near-mine exploration efforts across Plomosas, with several highly prospective targets defined across the project’s seven-kilometre mineralised sequence.
Consolidated Zinc has enjoyed a little 0.1 cent jump off the back of today’s news, to be priced at 0.4 cents per share by market close.