|
Canadian Zinc Corporation (TSX:CZN)(OTCBB:CZICF) ( "CZN") is
extremely pleased to announce the signing of an Impact Benefit Agreement with
the Nahanni Butte Dene Band with respect to the
development and operation of the Company's Prairie Creek Mine in the
Northwest Territories of Canada.
The NAH?A DEHE DENE PRAIRIE CREEK AGREEMENT provides for an ongoing working relationship between Canadian
Zinc Corporation and the Nah?a Dehe
Dene Band (Nahanni Butte Dene
Band) that respects the goals and aspirations of each party and will enable
the Nahanni community members to participate in the opportunities and
benefits offered by the Prairie Creek Project and confirms their support for
the Prairie Creek Mine.
The Prairie Creek Mine, a zinc/lead/silver property, is located within
the traditional territory of the Nah?a
Dehe Dene Band, about 90 kilometres to the northwest of the community of Nahanni
Butte, in the Northwest Territories. The route of the access road
connecting the Prairie Creek Mine to the Liard Highway passes within five kilometres of Nahanni Butte.
The Agreement provides a framework such that training, employment and
business contracts are made available to Nahanni to ensure maximization of
benefits from opportunities arising from the Prairie Creek Project in a
manner that will be to the mutual benefit of both parties.
The formal signing of the Agreement took place at a ceremony in
Nahanni Butte on January 20, 2011 and was attended by the Chief and Band
Council of the Nahanni Butte Dene Band; the Hon Bob
McLeod, Minister of Industry, Tourism and Investment of the Government of the
Northwest Territories; Kevin Menicoche, Member
of the Legislative Assembly for Nahendeh; the
Canadian Northern Economic Development Agency (CanNor);
and other government and aboriginal representatives.
"Canadian Zinc is very pleased to have signed this important
agreement with the Nahanni Butte Dene Band," said Chairman, John Kearney. "This is a very positive step for the development of the Prairie Creek
Mine. It is important that the mine has the support of the local
aboriginal community of Nahanni Butte and that those who live closest to the
mine site and access road will be able to participate in and benefit from the
Project."
"In signing this Agreement, we have formally established a co-operative and mutually beneficial
relationship with Nahanni, based on mutual respect, and which will
enable the community of Nahanni Butte to participate in the future economic
benefits of an operating mine at Prairie Creek," added John
Kearney.
At the signing ceremony Chief Fred Tesou, Chief of the Nahanni Butte
Dene Band said: "In this Agreement Canadian Zinc and the Nah?a
Dehe Dene Band acknowledge their mutual intentions
that the Prairie Creek Project will be developed and operated in a manner
that respects the land, the environment and cultures of aboriginal and
non-aboriginal peoples of the North. The Agreement confirms the
intentions of Canadian Zinc and the Nah?a
Dehe Dene Band to work
co-operatively to ensure our community and our people receive significant
economic benefit from the Prairie Creek Mine. In addition to the
financial benefit we have negotiated this Agreement will mean jobs, training
and education and business opportunities for our people for many years to come,"
added Chief Tesou.
The Honourable Bob McLeod, Minister of
Industry, Tourism and Investment for the Government of the Northwest
Territories, who witnessed the signing ceremony, offered his congratulations
to the community of Nahanni Butte and Canadian Zinc on the signing of the
IBA. "The Government of the NWT is
committed to the development and diversification of our economy with
sustainable benefits going directly to northerners. We will continue to
support communities and industry in meeting our shared goals of a sustainable
northern economy."
The formal signing ceremony was followed by a community celebration in
the form of the Annual Nahanni Winterfest which CZN
has initiated and sponsored in previous years.
Impact Benefit Agreement;
The Agreement, which is believed to be first Impact Benefit Agreement
completed for a mining project in the DehCho
region, acknowledges the Nah?a
Dehe Band aboriginal rights and interests in
the area of the proposed Prairie Creek mining operation and the access road, recognises that the NDDB must be consulted such that its
aboriginal rights and interests are fully accommodated, and provides the
mechanism for effective communication and co-operation between NDDB and
CZN.
Under this cooperative agreement CZN recognizes and respects NDDB's
asserted rights and interests in the Prairie Creek area. In return NDDB
acknowledge CZN's rights and interest in the development and future operation
of the Prairie Creek Mine. This Agreement reflects the mutual commitment
to maintain an open, respectful and cooperative relationship as the Prairie
Creek Mine progresses into operation.
Canadian Zinc has agreed to use its commercial best efforts to fill
employment opportunities by giving priority to NDDB members and also to
assist the NDDB to benefit from business opportunities associated with the
development and operation of the Prairie Creek Project.
CZN has agreed to undertake certain social measures relating to the
Project, including assistance in the future development of business opportunities
and in capacity building. CZN has also agreed to make contributions to
an Educational Fund to assist NDDB members seeking vocational or technical
skills training or education and will also make apprenticeship positions
available to NDDB Members.
Agreement Background
The Nah?a Dehe Band of Nahanni Butte, Northwest Territories is a
member of the DehCho First Nations. Nahanni
Butte is the closest community to the Prairie Creek mine and is located
approximately 90 kilometres southeast of the mine
site.
While exploring and developing the Prairie Creek project over many
years, Canadian Zinc has maintained good long term relations with the
community of Nahanni Butte. This includes providing employment, training
programs, community assistance, employing an
Information Officer, establishing an annual scholarship program, site tours
and sponsored and supported various community activities.
A Memorandum of Understanding was signed between the parties on
October 28, 2008 in which Canadian Zinc and NDDB declared their intentions to
work together, as responsible corporate citizens of the region in the spirit
of co-operation for mutual benefit as well as social, ecological, cultural
and economic well being. Negotiations continued between the parties
during 2010, held mostly in open public sessions within the community
resulting in the formal Agreement being endorsed and unanimously ratified by
both the Chief and Council of the NDDB and by the Board of Directors of CZN.
An operating Prairie Creek Mine has the potential to provide
significant economic opportunity for the NDDB and the entire Dehcho region. When in operation, it is expected
that the Prairie Creek Mine will provide about 220 full-time
jobs. Canadian Zinc has targeted minimum employment levels of 35%-40%
Northern residents and 15%-25% Aboriginal First Nations and has undertaken to
maximize business opportunities for regional First Nations communities.
Prairie Creek Project Status
Since August 2008, applications for a Water License and Land Use
Permits to support mining activities at Prairie Creek have been undergoing
Environmental Assessment (the "EA") coordinated by the
Mackenzie Valley Review Board (the Review Board ") based out of Yellowknife. The
EA process is presently in a second round stage of Information Requests which
will be followed by a Public Hearing. A decision from the Review Board
is expected during the second quarter of 2011 and will then be forwarded
to the Minister of Indian and Northern Affairs and Development in Ottawa for
ratification.
About the Prairie Creek Mine:
Canadian Zinc's principal focus is to advance the Prairie Creek Mine
towards production. The Prairie Creek mineral deposit contains substantial
quantities of zinc, lead and silver The Prairie Creek Property hosts total
Measured and Indicated Resources of 5,840,329 tonnes
grading 10.71% zinc, 9.90% lead, 0.326% copper, and 161.12 grams silver per tonne, a large Inferred Resource of 5,541,576 tonnes grading 13.53% zinc, 11.43% lead, 0.514% copper
and 215 grams silver per tonne and additional
exploration potential. [Technical Report October 2007, Minefill
Services Inc Dr. David Stone and Stephen Godden, Qualified Independent
Persons, in compliance with NI 43-101].
The Measured and Indicated Resource is capable of supporting a mine
life in excess of fourteen years at the planned initial rate of 600 tonnes per day, which will increase to 1,200 tonnes per day, and the future inclusion of Inferred
Resources is expected to extend the mine life to at least 20 years. The Mine
is partially developed with an existing 1,000 tonne
per day mill and related infrastructure.
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.
|