Canadian Zinc Corporation: Additional Mineralization Intersected at the Lemarchant Deposit South Tally Pond Project, Newfound...
February 27 2013 - 5:00AM
Marketwired Canada
Canadian Zinc Corporation (TSX:CZN)(OTCQB:CZICF) ("the Company" or "Canadian
Zinc") is pleased to provide an update on the 2013 winter Phase 1 diamond drill
program underway on its wholly owned South Tally Pond
copper-lead-zinc-silver-gold project in central Newfoundland. The South Tally
Pond project is located adjacent to, and in the same volcanic belt as, the Duck
Pond Cu-Zn Mine and Mill complex operated by Teck Resources. Highlights include:
-- Drilling extends massive sulphide intercept located northwest of the
Lemarchant deposit.
-- Drillhole LM13-73, located 40 metres up-dip of drillhole LM08-37,
intersected 5.82% zinc, 1.48% lead, 0.75% copper, 65.4 g/t silver and
1.63 g/t gold over 22.2 metres.
-- Drillhole LM13-74, located 35 metres up-dip of drillhole LM13-73,
intersected 5.33% zinc, 1.01% lead, 0.75% copper, 44.72 g/t silver and
0.26 g/t gold over 5.50 metres.
The newly extended zone remains open along strike with no drilling immediately
north or south of the new drillholes.
Michael Vande Guchte, Vice President Exploration commented "We are very
encouraged with the drilling progress at the Lemarchant deposit. The thick
mineralized intervals intersected in the first two drillholes contain
significant precious metal-rich massive sulphide zones and mineralized massive
barite. These new mineralized intervals are 250 metres northwest of the
Lemarchant Main Zone Deposit and highlight the potential to expand the
Lemarchant massive sulphide deposit beyond the current NI 43-101 resource."
The initial two drillholes of the 2013 drilling program targeted geology up-dip
(east) of a base metal sulphide zone intersected in a 2008 drillhole (LM08-37;
refer to table below for assays). LM08-37 is located about 300 metres to the
northwest of the Lemarchant Deposit, and was not included in the initial NI
43-101 mineral resource.
Drillhole LM13-73 intersected a well mineralized interval between 302.2-350.2
metres downhole (48.0 m) containing semi-massive to massive base metal sulphide
zones and massive barite zones. The mineralized interval is located 40 metres
east of LM08-37 and includes high grade intercept of 27.60% zinc, 1.12% lead,
2.71% copper, 89.01 g/t silver and 3.80 g/t gold over 3.80 metres.
Drillhole LM13-74 targeted the geology 35 metres up dip of the mineralization
intersected in LM13-73. The drillhole cored a similar, well mineralized interval
between 296.2-352.0 metres downhole (55.7 m) that contains semi-massive to
massive base metal sulphide zones and mineralized barite zone.
Significant assay results to date:
----------------------------------------------------------------------------
Hole ID From Length
(m) To (m) (m) Zn (%) Pb (%) Cu (%) Ag (g/t) Au (g/t)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LM08-37(i) 296.25 299.25 3.0 9.32 0.45 0.97 16.10 0.26
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LM13-73 302.8 317.4 14.6 2.54 0.81 0.27 30.27 0.65
----------------------------------------------------------------------------
328.0 350.2 22.2 5.82 1.48 0.75 65.41 1.63
----------------------------------------------------------------------------
includes 328.0 331.0 3.0 6.48 3.42 1.78 175.73 2.01
----------------------------------------------------------------------------
331.0 347.5 16.5 2.13 1.19 0.24 41.49 1.20
----------------------------------------------------------------------------
347.5 350.2 2.7 27.60 1.12 2.71 89.01 3.80
----------------------------------------------------------------------------
LM13-74 296.25 301.8 5.5 5.33 1.01 0.75 44.72 0.26
----------------------------------------------------------------------------
301.8 313.0 11.2 0.64 0.19 0.08 14.55 1.29
----------------------------------------------------------------------------
321.12 325.68 4.56 1.18 0.68 0.19 70.34 0.59
----------------------------------------------------------------------------
328.51 334.08 5.57 4.11 1.33 0.23 63.40 0.64
----------------------------------------------------------------------------
347.0 352.0 5.0 4.01 0.09 0.57 9.32 0.25
----------------------------------------------------------------------------
LM13-75 No significant
assays
----------------------------------------------------------------------------
LM08-28 Ext Assays pending for 2013 drillhole
extension
----------------------------------------------------------------------------
(i) Previously reported Paragon Minerals drillhole completed in 2008
(ii) All lengths are core lengths and interpreted to be near true widths
Drillhole LM08-27EXT extended a 2008 drill hole (LM08-27) from a drilled depth
of 262 metres to 485 metres to test the lower felsic block stratigraphy. The
drillhole extension intersected 94 metres of altered felsic volcanic rocks with
disseminated and stringer base metal mineralization.
Drillhole LM13-75 was completed 400 metres to the east on the same section test
for the lower felsic block stratigraphy. The drillhole did not intercept the
target at the end of hole depth of 539 metres and is interpreted to be
structurally displaced below the drillhole.
Drilling is continuing at the South Tally Pond project. The planned Phase 1
drill program includes 4,800 metres (in at least 17 holes) of core drilling
focused on expanding Lemarchant mineral resource (see Press Release dated
January 15, 2013). A total of 1,552 metres in four drillholes has now been
completed.
South Tally Pond Project
The South Tally Pond project is a significant, 100%-owned land position covering
214 km2 of a highly prospective volcanogenic massive sulphide ("VMS") geological
belt in central Newfoundland. The Lemarchant Deposit, the most advanced target
on the South Tally Pond property, is situated 20 km southwest of Teck Resources
Limited's Duck Pond copper-zinc mine in the same geological belt.
Previous drilling by Paragon Minerals Corporation (now a 100% owned subsidiary
of Canadian Zinc) at the Lemarchant Deposit has outlined a significant precious
metal-rich copper-lead-zinc VMS deposit with excellent potential to develop into
a viable economic resource. An initial National Instrument ("NI") 43-101 mineral
resource estimate was completed in January 2012 on the Lemarchant Deposit and
includes the following mineral resources:
-- Indicated Mineral Resource: 1.24 million tonnes grading 5.38% zinc,
0.58% copper, 1.19% lead, 1.01 g/t gold and 59.17 g/t silver (15.40%
ZnEQ) using a 7.5% zinc equivalent grade cut-off.
-- Inferred Mineral Resource: 1.34 million tonnes grading 3.70% zinc, 0.41%
copper, 0.86% lead, 1.00 g/t gold and 50.41 g/t silver (11.97% ZnEQ)
using a 7.5% zinc equivalent grade cut-off.
(See Technical Report and Mineral Resource Estimate on the Lemarchant Deposit,
South Tally Pond VMS Project, central Newfoundland, dated March 2, 2012 filed on
SEDAR under Paragon Minerals Corporation).
About Canadian Zinc
Canadian Zinc is a Toronto-listed exploration and development company. The
Company's key project is the 100%-owned Prairie Creek zinc, silver and lead
project located in the Northwest Territories, Canada. The Prairie Creek Project
contains a Mineral Reserve of 5.2 million tonnes averaging 9.4% zinc, 9.5% lead
and 151 g/t silver. In addition, Prairie Creek hosts an Inferred Resource of 6.2
million tonnes averaging 14.5% zinc, 11.5% lead, 0.57% copper and 229 g/t
silver. (AMC Mining Consultants (Canada) Ltd. J M Shannon and D Nussipakynova,
Qualified Persons, June 2012).
A Pre-Feasibility study completed by SNC Lavalin in June 2012 indicates a
pre-tax net present value ("NPV") of $253 million using an 8% discount, with an
internal rate of return ("IRR") of 40.4% and payback period of 3 years using
long-term metal price projections of $1.00/lb zinc, $1.00/lb lead and $26.00/oz.
silver, based on the Mineral Reserve alone.
Canadian Zinc holds a 100% interest in the South Tally Pond VMS project, along
with other property interests in central Newfoundland, through the Company's
acquisition of Paragon Minerals Corporation in September 2012.
Quality Assurance and Quality Control
Drillhole intervals are core length and estimated to be near true thickness.
Samples were analyzed for Au (1 assay ton), Ag, Cu, Pb and Zn at Eastern
Analytical Labs in Springdale, NL from sawn NQ-sized half core sections. Data
quality is monitored through the insertion of control samples consisting of one
prepared base and precious metal standard and one blank sample for every 20
samples of diamond drill core. All control samples conformed to the accepted
contained grades of base and precious metals. Select samples pulps were shipped
to ALS Chemex in North Vancouver, BC for 33-element ICP analysis for further
check assays of significant base and precious metal bearing samples. Historical
results were obtained from published reports and news releases available in the
public domain.
Michael J. Vande Guchte., P.Geo., VP Canadian Zinc Corporation and VP
Exploration for Paragon Minerals Corporation is responsible for the South Tally
Pond exploration program, and is a Qualified Person as defined by NI 43-101 and
has reviewed and has approved the contents of this news release.
Cautionary Statement - Forward-Looking Information
This press release contains certain forward-looking information, including,
among other things, the expected completion of acquisitions and 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. The Company does not currently hold a permit for
the operation of the Prairie Creek Mine. 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Canadian Zinc Corporation
John F. Kearney
Chairman
(416) 362-6686
(416) 368-5344 (FAX)
Canadian Zinc Corporation
Alan B. Taylor
Chief Operating Officer
(604) 688-2001 or Tollfree:1-866-688-2001
(604) 688-2043 (FAX)
Canadian Zinc Corporation
Steve Dawson
VP Corporate Development
(416) 203-1418
(416) 368-5344 (FAX)
invest@canadianzinc.com
www.canadianzinc.com
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