With COVID-19 related disruptions slashing expected zinc mine supply growth in 2020, the timing could not be better for Consolidated Zinc (ASX:CZL) to receive Mexican environmental approval to start on site processing at its Plomosas project.

Shares in the company jumped more than 33 per cent this morning to 0.4c on the news.

The approvals, which come after a two-year assessment, cover the refurbishment of the existing processing plant and for the construction and operation of the tailings storage facility (TSF).

Consolidated is now finalising the costing for refitting the plant and building the TSF.

It believes that taking direct control of processing of ore from its Plomosas project is a significant step in improving its operational performance in terms of metallurgical recoveries and costs.

Earlier this month, the company reported that zinc and lead grades of more than 25 per cent and 8 per cent respectively were being encountered at the newly opened Las Espadas underground area.

Danish bank ING noted that concentrate zinc shipments to China had fallen 40 per cent from the previous month to 213,000 tonnes due to the impact of the pandemic on major suppliers.

Exports from Peru and South Africa have been entirely absent in June while Spain and Bolivia have been absent since May.

Zinc prices have climbed 23 per cent to $US2,286 a tonne since collapsing to $US1,848 a tonne in mid-March.

Consolidated Zinc (ASX:CZL) share price chart



Copper drilling imminent

Godolphin Resources (ASX:GRL) is poised to kick off drilling at its Copper Hill East project in New South Wales’ Lachlan Fold Belt.

Recent soil samples have defined a copper anomaly over a continuous strike length of 5km with anomalous gold in the north.

The company will kick off a 1,350m reverse circulation drilling program in August to test the anomaly in the north for porphyry gold-copper style mineralisation and the native copper zone to the south.

Copper Hill East is 35km north of Orange and 60km south of Alkane Resources’ (ASX:ALK) exciting Boda porphyry gold-copper discovery.

Godolphin Resources (ASX:GRL) share price chart