Consolidated Zinc (ASX: CZL) reports that it has signed an offtake agreement for 100% of lead sulphide concentrate output from its Plomosas operation in Mexico.
The deal with Metco, a subsidiary of Minera Latin American Zinc, will also see the company purchase 100% of lead oxide concentrates, a new product being released by Consolidated Zinc in 2022.
CZL commenced zinc production at Plomosas in September 2018 and achieved commercial production in December 2018
CZL notes that lead sulphide concentrates produced at its 100%-owned Plomosas operation are high quality and low in deleterious impurities, resulting in lower treatment charges. The 3,000 hectare project. located in the northern Mexican state of Chihuahu, is strategically situated 350km from the United States border.
Metco is a privately-owned, Latin-America-focused metals trader, specialising on zinc and lead concentrates. The companies have had a working relationship since 2019.
Images: Consolidated Zinc Limited
