Use of LNG as Alernative Energy Source for the
Prairie Creek Mine
CZN-TSX
CZICF-OTCQB
VANCOUVER, Feb. 14, 2017 /CNW/ - Canadian Zinc
Corporation (TSX: CZN; OTCQB: CZICF) ("the Company"
or "Canadian Zinc") is pleased to announce
the signing of Memorandum of Understanding ("MOU") with
Northwest Territories Power Corporation ("NTPC") to examine
the supply of electrical power for the development and operation of
the Prairie Creek Mine in the Northwest
Territories, Canada.
In the MOU, NTPC has agreed to work with Canadian Zinc to assess
(a) how NTPC could supply the primary electrical energy source to
the mine and (b) how NTPC could install generating and connection
facilities or other infrastructure assets to provide such
electricity supply.
CZN and NTPC have also agreed to evaluate the integration of
other energy alternatives, and specifically Liquefied Natural Gas
("LNG"), as part of the energy supply for the mine.
Emanuel DaRosa, President and
CEO of NTPC, stated "NTPC is pleased to be working with
Canadian Zinc to investigate how we can provide energy for the
Prairie Creek Mine. A successful partnership would benefit
all Power Corporation customers and contribute to economic
development in the Northwest
Territories."
NTPC is currently investigating the potential to supply LNG for
the generation of electricity in local communities to reduce
dependency on diesel fuel, including Fort
Simpson, where the LNG would be delivered along the same
existing highway network that would be used to supply the Prairie
Creek Mine.
Alan Taylor, Chief Operating
Officer for Canadian Zinc, stated "The Prairie Creek Mine
would gain environmental and economic benefits from use of LNG as
an alternative source of energy. This would reduce the dependency
on diesel fuel by replacing it with LNG, which is a lower cost and
much more environmentally friendly source of fuel for power
generation."
LNG has been a dependable fuel for decades and continues to
demonstrate a strong track record of safe usage, transportation and
storage, which are important considerations for the Prairie Creek
Mine.
"The development of LNG production facilities in northern BC
and the recent discovery of natural gas in the Liard/Horn River
Basins of the NWT, which are located adjacent to the existing
highway haulage route, has made the potential use of LNG to be
delivered to the Mine by the proposed all season road, currently in
the advanced phase of the Environmental Assessment permitting
process, a viable alternative energy source for the Prairie Creek
Mine" added Alan
Taylor.
Use of LNG for power generation has significant benefits for the
environment as typical emissions are much lower than diesel fuel
sources, with greenhouse gas reduction of between 11% and 20%, NOx
emissions reduced by 80% and particulate emissions reduced by 75%.
Furthermore, in the unlikely event of any spill, LNG would
evaporate immediately and dissipate quickly into the atmosphere
without causing any environmental impact to soil, groundwater or
surface waters.
About Northwest Territories Power Corporation (NTPC)
NTPC is a wholly owned subsidiary of NT Hydro, which is 100%
owned by the Government of the Northwest
Territories. NTPC exists to provide value to its shareholder
and customers through the efforts of a highly dedicated, skilled,
and productive workforce. Its mission is to generate, transmit and
distribute electricity in a safe, reliable, efficient and
environmentally sound manner; striving to reduce reliance on fossil
fuels.
NTPC's vision is to be the provider of choice to customers, a
valuable partner to industry and Aboriginal groups in the NWT, as
well as a performance leader in the utility industry. NTPC will
also work with stakeholders to support development of the
tremendous resource potential of the NWT in a sustainable and
responsible manner creating long term benefits for its customers
and residents alike.
About the Prairie Creek Mine
The Prairie Creek Project is presently undergoing a Definitive
Feasibility Study to be completed by AMC Mining Consultants
(Canada) Ltd., and Ausenco
Engineering Canada Inc. A Preliminary Feasibility Study was
previously completed in March
2016.
Over the 17 year mine-life, Prairie Creek's projected average
annual mine production is expected to be approximately 60,000
tonnes of zinc concentrate and 55,000 tonnes of lead concentrate
containing approximately 86 million pounds of zinc, 82 million
pounds of lead, and 1.7 million ounces of silver.
There remains good potential for additional project
optimization, enhanced economics and further extending the life of
the Prairie Creek Mine.
The Prairie Creek Mine hosts proven and probable Mineral
Reserves of 7.60 million tonnes averaging 8.93% zinc, 8.33% lead,
and 127.58 g/t silver within Measured and Indicated Mineral
Resources of 8.70 million tonnes grading 9.5% zinc, 8.9% lead and
136 g/t silver. In addition, the Technical Report confirms a large
Inferred Mineral Resource of 7.05 million tonnes grading 11.3%
zinc, 7.7% lead and 166 g/t silver and additional exploration
potential. An amended Technical Report was filed under the
Company's profile on www.sedar.com in September 2016.
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 that it is exploring for
copper-lead-zinc-silver-gold deposits.
Qualified Person: Alan
Taylor, P.Geo., Vice President of Exploration, Chief
Operating Officer and Director of the Company, who is a
Non-Independent Qualified Person as defined in National Instrument
43-101 – Standards of Disclosure for Mineral Projects
("NI 43-101"), has prepared, supervised the preparation of
or reviewed, the parts of this News Release that are of a
scientific or technical nature.
Cautionary Statement – Forward-Looking Information
This press release contains certain forward-looking
information, including, among other things, the advancement of
mineral properties. This forward looking information includes, or
may be based upon, estimates, forecasts, and statements as to
management's expectations with respect to, among other things, the
completion of transactions, the issue of permits, the size and
quality of mineral resources, future trends for the company,
progress in development of mineral properties, future production
and sales volumes, capital costs, mine production costs, demand and
market outlook for metals, future metal prices and treatment and
refining charges, the outcome of legal proceedings, the timing of
exploration, development and mining activities, acquisition of
shares in other companies and the financial results of the company.
There can be no assurances that such statements will prove to be
accurate and actual results and future events could differ
materially from those anticipated in such statements. 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