Consolidated Zinc (ASX: CZL) has discovered a high-grade gold system at its wholly-owned Plomosas concessions in Mexico’s Chihuahua state.
First pass rock chip samples collected from old workings about 5km the north of the current zinc-lead-silver operation at the project have revealed up to 61 grams per tonne gold.
The 61g/t gold sample was taken from the La Chona area, and also graded 2.88% copper and 6.9g/t silver.
Other rock chips from La Chona returned 27.5gt gold, 2.19% copper and 4.1g/t silver; and 7.42g/t gold, 2.91% copper and 4.2g/t silver.
At the Chona-Enrique prospect, a sample assayed 4.77g/t gold, 4.06% copper, and 3.8g/t silver, while a grab sample from Potrero returned 2.55g/t gold.
According to Consolidated Zine, the result indicates a potential 1km gold system within the Plomosas concessions.
The company is continuing with mapping and sampling over the area, with assays to be reported once they are received.
During the September quarter last year, Consolidated Zinc acquired the final 10% outstanding interest in Plomosas – increasing its ownership to 100%.
Historical mining at the project occurred between 1945 and 1974 and extracted 2 million tonnes of ore grading 22% zinc and lead, plus in excess of 80g/t silver.
Mineralised zones remain open at depth and along strike, with Consolidated Zinc carrying out mining at the project.
During the period, Consolidated Zinc mined 7,511t of ore grading 13.5% zinc and 8.2% lead. This was reduced as the company eroded existing stockpiles.
Ore processed amounted to 9,120t at 12.5% zinc and 7.9% lead.
Meanwhile, 773t of zinc, 273t of lead and 854oz of silver were sold to local smelters.
Cash costs for the September quarter averaged $1.01 per pound of payable zinc sold.
To extend mine life at the project, Consolidated Zinc is also actively drilling targets, with a current campaign kicking-off in late December last year.
By mid-morning trade, Consolidated Zinc’s share had rocketed more than 42% to $0.01.