CANADA ZINC METALS CORP.
FOR IMMEDIATE RELEASE
info@canadazincmetals.com
Tongling Nonferrous Metals
Group Holdings Co. Ltd. Exercises
Share Purchase Warrants
Vancouver,
British Columbia, Canada � Monday, May 10, 2010 � Canada Zinc Metals Corp. (TSX
Venture Exchange: CZX) is pleased to announce that
Tongling Nonferrous Metals Group Holdings Co. Ltd. (�Tongling�) has exercised 5.75 million share purchase warrants to
acquire 5.75 million common shares at a price of $0.60 per share, for proceeds
to the Company of $3,450,000.
��The Cardiac Creek deposit is one of the most
significant discoveries in Canada
in the past several years,� commented Mr. Peeyush
Varshney, CEO of Canada Zinc Metals.� �We are pleased to see Tongling increase its
stake in the Company."�
With the
exercise of the warrants, Tongling now holds a 17.65% equity position in the
Company.
The proceeds
of the private placement will be used to fund further exploration and
advancement of the Company�s Akie property and for working capital purposes.
Tongling
Nonferrous Metals Group Holdings Co. Ltd., based in Tongling, Anhui,
is a state-owned holding company, and one
of China's
largest copper smelting companies.�
Tongling�s principal activities are exploration, mining, ore processing, smelting & refining and products
processing of copper, lead, zinc, gold, silver and other non-ferrous and rare
metals.�
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.
About the Akie Property
The Akie
zinc-lead property is situated within the southern-most part (Kechika Trough)
of the regionally extensive Paleozoic Selwyn Basin, one of the most prolific
sedimentary basins in the world for the occurrence of SEDEX zinc-lead-silver
and stratiform barite deposits.
Drilling on
the Akie property by Inmet Mining Corporation during the period 1994 to 1996
and by Canada Zinc Metals since 2005 has identified a significant body of
baritic-zinc-lead SEDEX mineralization (Cardiac Creek deposit).� The deposit is hosted by variably siliceous,
fine grained clastic rocks of the Middle to Late Devonian �Gunsteel�
formation.� 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).� The complete NI 43-101 technical report,
titled �Geology, Diamond Drilling and Preliminary Resource Estimation, Akie
Zinc-Lead-Silver Property, Northeast British Columbia, Canada�
and dated May 30, 2008, can be viewed on SEDAR.
Two similar
deposits, Cirque and South Cirque, located some 20 km northwest of Akie and
owned under a joint venture by Teck Cominco and Korea Zinc, are also hosted by
Gunsteel rocks and have a combined geologic inventory in excess of 50 million
tonnes.
The TSX Venture Exchange has neither approved
nor disapproved the contents of this press release.
ON BEHALF OF
THE BOARD OF DIRECTORS
CANADA ZINC
METALS CORP.
�PEEYUSH VARSHNEY�
�����������������������������������������������������������
pEEYUSH vARSHNEY, LL.B
CEO & CHAIRMAN