Prairie Creek
2016 Technical Report
Annual Information Form
CZN-TSX
CZICF-OTCQB
VANCOUVER, Sept. 30, 2016 Canadian Zinc Corporation
(TSX: CZN; OTCQB: CZICF) ("the Company" or "Canadian Zinc")
reports that the Company has re-filed the Prairie Creek 2016 Technical Report,
originally filed with SEDAR on May 12,
2016, to correct an overstatement of the gross smelter
revenue in the life-of-mine economic model included in its 2016
Preliminary Feasibility Study. (See Canadian Zinc News Release
dated September 14, 2016.)
All other inputs into the economic model and all technical
aspects of the 2016 Preliminary Feasibility Study remain unchanged,
including all mineral resource and reserve estimates, mining plans
and production rates and estimates of capital and operating costs
and assumptions on concentrate treatment charges and penalties.
The revised base case economic model continues to indicate a
robust project at consensus forecasts for the long-term prices of
lead and zinc and there remains good potential for additional
project optimization, enhanced economics and further extending the
life of the Prairie Creek Mine.
The revised financial results remain strongly positive and
indicate a pre-tax undiscounted cumulative cash flow of
$710 million at metal prices of
US$1.00/lb for zinc and lead and
US$19/oz for silver. The revised
financial model yields a pre-tax NPV of $284
million at an 8% discount rate, with an IRR of 23%, and a
post-tax NPV of $155 million, with a
post-tax IRR of 18%.
The 2016 Preliminary Feasibility Study and the Prairie
Creek Property Prefeasibility Update NI 43-101 Technical Report
(filed on SEDAR on May 12, 2016) and
the Prairie Creek Property Prefeasibility Update NI 43-101
Technical Report (Amended and Restated) (filed on SEDAR on
September 30, 2016) were completed by
AMC Mining Consultants (Canada)
Ltd., and Tetra Tech Inc. with input from Canadian Zinc personnel
and consultants. Canadian Zinc personnel were primarily responsible
for the financial model and inputs and the financial analysis and
for Section 22 "Economic analysis" of the Technical Report.
The Company has also re-filed its Form 20F (Annual Information
Form) for the year-ended December 31,
2015, to reflect the correction of the information extracted
from the Technical Report referred to in this document.
This news release has been reviewed and approved by Alan Taylor P.Geo. COO & VP Exploration, who
participated in the preparation of the Prairie Creek Property
Prefeasibility Update NI 43-101 Technical Report (Amended and
Restated) and is a Non-Independent QP under National
Instrument 43-101 ("NI 43-101") for Canadian Zinc.
The following Qualified Persons have reviewed and approved the
content of this news release as it pertains to their areas of
expertise and project responsibility.
G. Z. Mosher,
P.Geo
|
Global Mineral
Resource Services
|
H. A. Smith,
P.Eng.
|
AMC Mining
Consultants (Canada) Ltd.
|
H. Ghaffari,
P.Eng.
|
Tetra Tech
Inc.
|
J. Huang
P.Eng.
|
Tetra Tech
Inc.
|
T. A. Morrison
P.Eng.
|
Consulting Mining
Engineer
|
About Canadian Zinc
Canadian Zinc is a TSX-listed exploration and development
company trading under the symbol "CZN". The Company's key project
is the 100%-owned Prairie Creek Project, a fully permitted,
advanced-staged zinc-lead-silver property, located in the
Northwest Territories. Canadian
Zinc also owns an extensive land package in central Newfoundland.
Cautionary Statement – Forward-Looking
Information
This news release contains "forward-looking information"
within the meaning of applicable Canadian securities legislation
and "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of
1995 (collectively, "forward-looking statements"). Forward-looking
statements in this news release include, but are not limited to:
statements with respect to the extent and impact of the
overstatement described in this news release; expectations
regarding the filing of an amended technical report and the
expected content of that technical report; statements with
respect to the Company's proposed Prairie Creek Mine operations,
including life-of-mine, cash flow and other economic projections;
the future mine grades, recoveries and production rates expected
from the Prairie Creek Mine; the estimation of mineral reserves and
mineral resources; the realization of mineral reserve and mineral
resource estimates; the terms of any contracts the Company may
ultimately enter with respect to the sale of zinc, lead, silver or
copper concentrates; and the outlook for future prices of zinc,
lead, silver and copper. Such forward-looking statements are
made pursuant to the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995.
Since forward-looking statements are based on
assumptions and address future events and conditions, by their very
nature they involve inherent risks and uncertainties which could
cause actual results or events to differ materially from those
reflected in the forward-looking statements, including risks
relating to, among other things: the preliminary nature of the
calculations contained in this news release, mineral
reserves, mineral resources (including
with respect to the size, grade
and recoverability of mineral resources),
results of exploration, reclamation and other post-closure costs,
capital and construction costs, mine production costs, the
timing of exploration, development and mining activities, commodity
prices and the terms of commodity sales agreements, and all of the
other risks described under "Forward Looking Statements" in the
Company's Annual Report filed on SEDAR or EDGAR.. These
forward-looking statements are based on certain assumptions which
the Company believes are reasonable, including: that the
preliminary calculations of the overstatement described in this
news release, and the impact of that overstatement, are correct and
will not be materially different from the complete calculations
contained in an amended technical report; that the Company will
file an amended technical report on the Prairie Creek Mine;
sustained zinc, lead, silver and other commodity demand and prices,
and that such prices will be materially consistent with those
anticipated; the proposed development of the Company's mineral
projects will be viable operationally and economically and proceed
as planned; the actual nature, size and grade of the Company's
mineral reserves and resources are materially consistent with
estimates; and all of the assumptions described under "Forward
Looking Statements" in the Company's Annual Report filed on SEDAR
or EDGAR.
The Company does not undertake to update any forward-looking
statements that may be made from time to time by the Company or on
its behalf, except in accordance with applicable securities laws.
Mineral resources that are not mineral reserves do not have
demonstrated economic viability. Inferred mineral resources are
considered too speculative geologically to have economic
considerations applied to them that would enable them to be
categorized as mineral reserves. There is no certainty that mineral
resources will be converted into mineral reserves.
Cautionary Note to United States
Investors
The United States Securities and Exchange Commission ("SEC")
permits U.S. mining companies, in their filings with the SEC, to
disclose only those mineral deposits that a company can
economically and legally extract or produce. We use certain terms
in this press release, such as "measured," "indicated," and
"inferred" "resources," which the SEC guidelines prohibit U.S.
registered companies from including in their filings with the
SEC.
SOURCE Canadian Zinc Corporation