Why Consolidated Zinc Is up Close to 30% Today (ASX:CZL)

Shares for Consolidated Zinc Limited [ASX:CZL] are up 29% today. The share price of CZL increased from $0.008 to $0.009, at time of writing.

Consolidated Zinc is a mineral exploration small-cap listed in the ASX. They hold a 100% interest in the Plomosas mine project, which is located in the Mexican state of Chihuahua, about 350km from the Mexico-Texas border.

cosolidated zinc

 Source: Consolidated Zinc

The company began mining at the site in September 2018 and started producing zinc commercially two months later. Consolidated Zinc is looking to target 500,000 tonnes of zinc discovery this year.

Why are Consolidated Zinc shares up today?

During their exploration, the company hit high grade gold, literally.

According to their announcement today, first pass rock chip samples from the north-west area of their present zinc-lead-silver mining operations are showing results of up to 61.0 grams per tonne of gold.

Here are some of the highlights:

Source: Consolidated Zinc

According to the company, results indicated that there is a potential gold system over an area of at least one kilometre within Plomosas’ concession.

Consolidated Zinc stated:

Historical small-scale mining of high-grade gold and copper quartz veins was undertaken but there have been no previous modern gold exploration methods completed within the Plomosas concessions to assess the implication or potential of these occurrences. Consequently, these results are very encouraging.

What could happen next?

There is a lot of excitement surrounding gold and gold explorers as gold prices have continued increasing. Since August 2018, gold prices have increased by 34% in US dollars and 45% in Australian dollars.

Fears on the coronavirus outbreak has also been pushing gold prices up this week.

With gold prices increasing, it’s not surprising that we are seeing more interest in gold and more gold exploration.

Where could gold prices go?

Gold expert Jim Rickards is forecasting that gold prices could hit US$10,000 in the next years. In a recent exclusive video interview with The Rum Rebellion’s editor Greg Canavan, Jim explains why.

To watch this free interview, click here.


Selva Freigedo

Selva Freigedo is a research analyst for The Rum Rebellion. Born in Argentina, her passion for economic analysis started at a young age. Her father was an economist for the Argentinean governments and the family used to discuss politics and economics at the dinner table. Argentina is a country with an unusual economic history. Growing up there gave Selva first-hand experience on different economic phenomena such as hyperinflation, devaluation and debt default. Selva has also lived in Brazil, Spain and the USA. Back in 2000 she was living in the US as the dot com bubble popped… And in 2008 she was in Spain as the property market exploded and then collapsed… She has seen first-hand what happens when bubbles burst. Selva joined Port Phillip Publishing’s team in 2016, as an analyst. She now writes from her vantage point in Australia, where she settled in 2015.

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