Please find below, for your information, excerpts from the May 24, 2011 "Global Commodity Watch" report issued by Goldman Sachs.
"Turning more bullish as supply-shock concerns fade."
"...we now believe that the risk/reward once again favours being long commodities. Accordingly, we are shifting back to a near-to medium-term overweight recommendation, reiterating our long-term overweight and recommending fresh longs in oil, copper and zinc."
"Although the economy has likely shifted into a slower, but sustained, growth environment, we continue to expect that economic growth will likely be sufficient to tighten key supply/constrained markets in 2H2011, leading to higher prices from current levels."
"We believe that current zinc price levels offer an attractive opportunity to establish long positions in the metal. We believe that demand growth is outpacing supply growth sufficiently to tip the market into deficit in 2012. Although we do not see the zinc balance as tight as copper next year, given how low current prices are relative to industry economics, we believe that zinc price risk is substantially skewed to the upside. We emphasize that China is a growing importer of zinc raw materials, like copper, setting up for sizeable upside for the metal even before important mine closures are set to take place in 2013 - 2015."
TSX.V: CZX
About Canada Zinc Metals Corp.
Canada Zinc Metals is a mineral exploration company focused on unlocking the potential of a future long life mining district in British Columbia, Canada. The Company is the dominant land holder in a world class mineral belt called the Kechika Trough which hosts in excess of 80 million tonnes of base metal resources.
Canada Zinc Metals owns a total of 78,526 hectares in 233 claims which extend northwestward from the Akie property for a distance of 125 km.
The Company has filed a NI 43-101 report supporting the estimated inferred resource of 23.6 million tonnes grading 7.6% Zn, 1.5% Pb and 13.0 g/t Ag (at a 5% Zn cut off grade) at its flagship Akie property. Using this estimate, the deposit contains 3.95 billion pounds of zinc, 780 million pounds of lead and 8.95 million ounces of silver. The deposit remains open in all directions.
Tongling Nonferrous Metals Group and Lundin Mining are significant shareholders of the Company.