NZC NorZinc Ltd

NZC-TSX 
NORZF-OTCQB

VANCOUVER, BC, May 4, 2022 /CNW/ - NorZinc Ltd. (TSX: NZC) (OTCQB: NORZF) (the "Company" or "NorZinc") is pleased to provide an update on activities at the Prairie Creek Project ("Prairie Creek" or "the Project") located in the Northwest Territories, Canada.

The Company is pleased to announce that the amendment to the mine Water License ("WL") and Land Use Permit ("LUP") for the expansion from 1,600 tpd mining to 2,400 tpd mining has continued to move through the regulatory process and that the draft WL and LUP were distributed for comment on April 14, 2022. A final decision by the regulatory authority, the Mackenzie Valley Land and Water Board ("MVLWB"), is expected for the LUP with issuance in June 2022, along with a recommendation for the approval of the WL by the Government of the Northwest Territories Minister of Environment and Natural Resources to be undertaken within 90 days of the recommendation.  

The Company has also made progress throughout 2022 working with the regulatory authorities, Parks Canada ("Parks") and the MVLWB, to clarify the additional requirements and advance the conditions of the license and permit to commence construction of the Phase 1 All-Season Access Road ("ASR"), also known as the Pioneer Winter Road ("PWR"). In particular, the Company and Parks have established a regular meeting schedule and are working closely to meet the necessary permit conditions and comply with all regulatory guidelines to a high standard.

Rohan Hazelton, President & CEO of NorZinc stated, "The Company is very pleased with the level of engagement and collaboration of all stakeholders and would especially thank the technical teams at Parks and the MVLWB for their cooperation and guidance during these processes. With the respect to the expanded 2,400 tpd mine, the receipt of the draft water license and permit is a significant milestone in the advancement of the Project and indicates the regulatory bodies recognition of the significant benefits the project will bring to all stakeholders, especially the local Nahæâ Dehé Dene Band and Łı́ı́dlı̨ı̨ Kų́ę́ First Nation communities. We appreciate the continued support by all local communities, and we look forward to advancing the Project in order to realize the substantial benefits for all local stakeholders."

In November 2019, NorZinc received the necessary authorizations to construct, maintain and operate an ASR from Liard Highway to the Project from the appropriate regulatory authorities, including MVLWB and Parks. Specifically, the authorizations received were the WLs and LUPs for the ASR. Conditions of the WLs and LUPs for the ASR include the completion, review and approval of various management plans ("MP") by the MVLWB and Parks.

The company has been focusing efforts on the completion of these MPs for the Phase 1 ASR and as of this date, the Company received final or conditional approvals on over 70% of the MPs and is expected to complete all Phase 1 MP approvals by mid-year. Based on the continuous progress and ongoing engagement with the regulatory authorities it is the Company's expectation that final management plans approvals will be received by Q3 2022. Based on this timeline, the Company plans to commence construction of the PWR in Q4 2022, when temperatures and conditions are suitable to start the required work. The PWR constitutes Phase 1 of the ASR which will be the first road access to the mine in over 40 years.

NorZinc is planning to undertake a 5,300 metre surface exploration drill program within the 2022 summer season. The main purpose of this drill program is to further validate the geotechnical structural controls and refine the mining dilution volume estimates. Televiewer logging and analysis will be undertaken on the planned drill holes to provide additional data and improve certainty. Additional metallurgical sample collection and test work is also planned to increase the accuracy of the concentrate quality and recovery forecasts for years 1 to 5.

The drill program is estimated to take approximately 4.5 months, from June to October 2022. As usual, ongoing water treatment activities will be undertaken along with general camp support. All planned work programs are subject to financing.

An updated Feasibility Study ("FS") is planned to commence in the Q4 2022 and will incorporate the results of the summer drill and testing programs. It is anticipated that this FS will be issued in the mid-2023 and aligned with the necessary procurement commitments required to support the equipment and supplies which will be brought in on the Q1/Q2 2023 winter road.

Management is currently evaluating multiple near-term financing opportunities to fund the planned 2022 work program at Prairie Creek and the commencement of the FS and expects to update the market imminently on the progress.

NorZinc Ltd. is a premium mine developer specializing in high-grade zinc, silver and lead deposits. The Company has an experienced Management team and Board along with an established site infrastructure. NorZinc is currently developing the Prairie Creek Project, a project with a long mine-life and significant expansion potential. The project's primary metal is zinc, a Critical Mineral as defined by both Canada and the United States.

NorZinc is headquartered in Vancouver, BC and listed on the Toronto Stock Exchange under the symbol "NZC", in the United States on the OTCQB under the symbol "NORZF".

This press release contains forward-looking information, including, among other things, statements regarding the timeline for commencing winter road construction, the timeline to commence concentrate production, and the timeline for issuing a feasibility study on the Project. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that regulatory approvals will be obtained when expected and that the Company will be able to carry out its plans as anticipated. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks include, among others, delays in obtaining or inability to obtain required regulatory approvals, as well as all of the risk factors described in the Company's most recent Annual Information Form and Management's Discussion & Analysis available for review on the Company's profile at www.sedar.com. The Company disclaims any intention or obligation to update or revise any forward-looking information, except as required by applicable law.

SOURCE NorZinc Ltd.