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NEWS RELEASE For Immediate Release
CANADIAN ZINC RECEIVES LAND USE PERMITS FOR OPERATION OF PRAIRIE CREEK MINE
Vancouver, British Columbia, June 21, 2013 - Canadian Zinc Corporation (TSX: CZN; OTCQB: CZICF) (�?othe Company�?� or �?oCanadian Zinc�?�) is pleased to announce that the Mackenzie Valley Land and Water Board has issued two key Land Use Permits (�?oLUP�?�) for mining operations at its wholly owned Prairie Creek Mine in the Northwest Territories, Canada.
LUP MV2008D0014 permits Canadian Zinc to extract ore and waste rock from the Prairie Creek Mine, operate a flotation mill concentrator to produce zinc and lead concentrates, create a waste rock facility, and refurbish and develop site facilities in support of the mining operation along with the eventual closure and reclamation of the minesite.
LUP MV2008T0012 permits Canadian Zinc to construct and operate the Liard Transfer Facility to be situated near the junction of the existing Prairie Creek Mine access road and the Liard Highway. The Liard Transfer Facility is a staging area at the south end of the winter access road designed to temporarily store outbound concentrate and inbound supplies.
Both new LUP permits are valid for a term of five years and with an optional two year extension.
In January 2013 the Mackenzie Valley Water Board issued LUP MV2012F007 which permits the construction, maintenance, operation and use of the winter access road connecting the Prairie Creek Mine to the Liard Highway. This permit allows the outbound transportation of the zinc and lead concentrates to be produced at the mine and the inbound transportation of fuel and other supplies during the actual operation of the Prairie Creek Mine.
The Company expects that in the near future the Water Board will also issue a Class Type �?~A�?� Water Licence which will be subject to approval by the Federal Minister of Aboriginal Affairs and Northern Development. Canadian Zinc is also awaiting final permits from Parks Canada for the operation of portion of the winter road that passes through the Nahanni National Park Reserve and construction of the Tetcela Transfer Facility, a second road staging area to be located within the Park. Draft permits were issued for review by Parks Canada in March, 2013 and it is expected these permits will be finalized in the near-term.
About Canadian Zinc
Canadian Zinc is a Toronto-listed exploration and development company. The Company�?Ts 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 (�?oNPV�?�) of $253 million using an 8% discount, with an internal rate of return (�?oIRR�?�) 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�?Ts acquisition of Paragon Minerals Corporation in September 2012.
For further information contact:
John F. Kearney
Chairman
(416) 362-6686
Suite 700 �?" 220 Bay Street
Toronto, ON M5J 2W4
Fax: (416) 368-5344 |
Alan B. Taylor
Chief Operating Officer
(604) 688-2001
Suite 1710-650 West Georgia Street,
Vancouver, BC V6B 4N9
Fax: (604) 688-2043
Tollfree:1-866-688-2001 |
Steve Dawson
VP Corporate Development
(416) 203-1418
Suite 700 �?" 220 Bay Street
Toronto, ON M5J 2W4
Fax: (416) 368-5344 |
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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�?Ts 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 (�?oSEC�?�) 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 �?omeasured,�?� �?oindicated,�?� and �?oinferred�?� �?oresources,�?� which the SEC guidelines prohibit U.S. registered companies from including in their filings with the SEC. |
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