- Consolidated Zinc (CZL) has kickstarted production at its newly refurbished Plamosas plant at its namesake mine in Mexico
- While not disclosing the full cost of the plant, Consolidated advised it was completed within its projected US$1.36 million (approximately A$1.75 million) budget
- The plant is said to have the capacity to operate at 300 tonnes per day but will initially operate at 100 tonnes per day with the capacity to upgrade by the end of the year
- The company also completed the accompanying Plomosas Tailings Dam, which CZL said is one of the first to be built under new legislation in the country
- Consolidated Zinc is up 2.13 per cent following the announcement and trading at 4.8 cents per share
Consolidated Zinc (CZL) has kickstarted zinc and lead production at its newly refurbished concentrator plant at the Plomosas mine in Mexico.
The company said the plant has the capacity to operate at 300 tonnes per day but will initially operate at 100 tonnes per day with the capacity to upgrade to 200 tonnes per day by the end of the year.
While not disclosing the full cost of the plant, Consolidated advised it was completed within its projected US$1.36 million (approximately A$1.75 million) budget.
Funding for the plant was aided by a $2 million equity raising in October last year via a shareholder rights issue.
A second wave of COVID-19 and extreme winter weather conditions across Texas and Chihuahua states set the project back an extra six weeks on the company’s initial anticipated completion date.
CZL said the accompanying Plomosas Tailings Dam is one of the first designs approved under new Mexican laws imposed after a series of previous tailings dam failures in Mexico and Brazil.
According to the company, the dam’s current stage can support operations for 18 months, with stage two storage designed with a storage capacity of nine years.
“I believe this is the final step to the Plomosas mine producing high-quality concentrates, consistently and cost-effectively,” Consolidated Zinc’s Managing Director Brad Marwood.
“With commissioning of the wholly-owned processing plant, we now have full
control over both the mining and processing functions for the first time,” he added.
Consolidated Zinc is up 2.13 per cent following the announcement and trading at 4.8 cents per share at 10:56 am AEST.