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CANADIAN ZINC CORPORATION
Suite 1710 - 650 West Georgia Street, Vancouver, BC, V6B 4N9
Tel: (604) 688-2001
Fax: (604) 688-2043
Toll free: 1-866-688-2001
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CANADIAN ZINC SUBMITS PERMIT APPLICATIONS FOR PRODUCTION AT THE PRAIRIE CREEK
MINE
14 YEAR (PLUS) MINE LIFE: Based on
Measured and Indicated Resources
OPTIMIZATION OF MILLING
PROCESS: Addition of Dense Media Plant and Paste
Backfill
NEW ENVIRONMENTAL
MANAGEMENT PLAN: All tailings to be placed
underground
CONCENTRATES SHIPPED ON
WINTER ROAD: Detailed transportation plan
UPGRADE OF EXISTING
FACILITIES: including new power generation plant
Vancouver, British Columbia, June
11, 2008 - Canadian Zinc Corporation (TSX: CZN; OTCBB: CZICF) (the "Company" or
"Canadian Zinc") is extremely pleased to announce that
applications have been submitted to the Mackenzie Valley Land and Water
Board (the "MVLWB") for permits for the proposed operations and
production at the Prairie Creek Mine (the "Project") in the
Northwest Territories.
After completing numerous exploration, engineering,
environmental studies, and recently completing a major underground
development and metallurgical program, CZN has now applied for a Type
"A" Water Licence and Type "A" Land Use Permit
("LUP") for the operation of the Prairie Creek Mine.
The proposed new operation at Prairie Creek utilizes the
extensive existing infrastructure and facilities that were built in the
1980's which will be upgraded and enhanced to meet the highest
environmental standards. The improvements proposed for specific site
facilities will further mitigate the potential impact the Project may
have on the environment. For example, the permanent disposal of
filtered mill tailings as underground backfill instead of on the
surface is proposed.
"It has taken a long
time to get to this point but the location of the Project has always
dictated a very stringent approach to environmental management and
mitigation" said Chief
Operating Officer Alan Taylor.
Since 2001 various aspects of the project have already been
subjected to five environmental assessments by the Mackenzie Valley
Environmental Impact Review Board and Canadian Zinc has successfully
obtained five land use permits and a Type "B" water licence
to carry out the necessary exploration and development programs at the
mine site. The Company
currently holds a Type "B" Water Licence and Land Use Permit
for underground exploration and development and metallurgical testing
and a Land Use Permit for surface exploration throughout the Prairie
Creek property. The Company
also holds a Land Use Permit and a Water Licence for the use and repair
of the existing road that connects the mine with the Liard
highway.
"As a result of its previous
experience in obtaining permits the Company has first-hand knowledge of
the Mackenzie Valley permitting process and has incorporated extensive
responsible environmental mitigative measures within this application. In turn, the regulatory and
government agencies have developed a good understanding of the Prairie
Creek Project, all of which should assist in expediting the new permit
applications." Alan Taylor
added.
The permit applications are currently under review by the MVLWB
at this time and may be viewed on the MVLWB website at www.mvlwb.ca or on the
Company website at www.canadianzinc.com
The Proposed Prairie Creek Mine Operation:
Mineral Resource Basis. The Prairie Creek Mine mineralization occurs
as both Vein and Stratabound type deposits. Based on a recently
completed detailed underground exploration and development program an
updated mineral resource was calculated in 2007 (in accordance with the
requirements of National Instrument 43-101 Standards for Disclosure for
Mineral Projects) which defines an overall Measured and Indicated
Mineral Resource totalling 5,158,164 tonnes grading 10.8% Pb, 11.3% Zn,
175 g/t Ag and 0.4% Cu.
This is sufficient for more than 10 years of operations at the
planned production rates. In addition, there is an open-ended inferred
resource of 5,541,576 tonnes grading 11.4% Pb, 13.5% Zn, 215 g/t Ag and
0.5% Cu. Mineral
resources were reported in a 43-101 compliant Technical Report dated
October 12, 2007, prepared by MineFill Services Inc. (Dr. David Stone
and Stephen Godden - Qualified Independent Persons).
Environment. Extensive environmental data has been
collected at the Prairie Creek Mine Site over recent years to update
and add to the baseline information that was collected previously as
far back as the late 1970's. Sixteen years of water flow data have been
recorded on the Prairie Creek watercourse adjacent to the Mine Site.
CZN now has an extensive database on water quality, stream flows, local
climatic variables, and the wildlife in the area.
The Mine. All mining will be performed from
underground. Underground development and workings (about 5,000 metres)
already exist on three levels, including the new 600 metre decline
driven in 2006/07. Proposed production rates will initially start at
600 tonnes/day and will build to 1,200 tonnes/day. Mining will occur on a year
round basis by cut-and-fill methods. Mine voids will be backfilled with
a mix of filtered tailings, waste rock aggregate and cement. The
current planned mine life is 14 years.
The Mill. The Mill, which is already constructed on
site but never operated, will process 600-1,200 tonnes/day. Ore
will be crushed to a gravel-size and subjected to dense media
separation ("DMS"). The lighter, uneconomic
"gangue" minerals (about 30%) will create a waste rock
aggregate. Denser material will be processed further by grinding and
flotation to produce concentrates of lead sulphide, zinc sulphide and
lead oxide. No hazardous chemicals will be used in the process.
Concentrates
and Road Haul. The concentrates will be bagged, stored under cover and
trucked off-site on flat-deck trailers over the winter road. CZN holds
a Type "A" LUP (MV2003F0028) for the use of the winter road
from the Prairie Creek Mine to the Liard
Highway. The permit for the existing road has
been determined to be exempt from environmental assessment (Canadian
Zinc Corporation vs. MVLWB, NWT Supreme Court, 2004). CZN has also
applied for Type "A" LUP's for two new transfer facilities to
be located approximately mid-point along the winter road and at the
junction of the winter road with the Liard Highway.
Waste
Management. All flotation tailings will be backfilled into the voids
in the underground mine in a mix with the waste rock aggregate and
cement. The flotation tailings are expected to be non-acid generating
with low sulphide content and excess buffering capacity. Waste rock
from underground development along with excess waste rock aggregate
from the DMS plant will be placed in an engineered Waste Rock Pile
("WRP") in the adjacent Harrison Creek valley.
Water
Management. An existing large pond, originally intended in 1980 for
tailings disposal, will be reconfigured, relined and recertified to
form a two-celled Water Storage Pond. Mine drainage, treated sewage
water and WRP runoff will report to the first cell. Water for the mill
process will be taken from this first cell. Excess water from the first
cell will overflow into the second cell. Used water from the Mill will
also report to the second cell. The second cell will feed a water
treatment plant. The treated water will discharge to the existing
certified Polishing Pond and from there into the existing Catchment
Pond, before final discharge to the environment.
Site
Infrastructure. The Site presently contains a near complete mill, three
levels of underground workings, a fuel tank farm, office facilities,
accommodation facilities and workshops. Existing buildings and
structures will be upgraded and modernized. New facilities will include
fuel-efficient low-emission power generation units, a
kitchen/accommodation block, concentrate shed and an incinerator.
Socio-Economics
and Manpower. The operation of the Prairie Creek Mine will provide
substantial economic stimulus to the region, and presents a unique
opportunity to enhance the social and economic well-being of the
surrounding communities. There will be approximately 220 direct full
time jobs, half of this number being on-site at any one time. Personnel
will generally work a three weeks on, three weeks off schedule (with
variations as required). CZN's objective is to employ a workforce with a
35% northern content, and a minimum 15% First Nations content assisted
by training programs. In addition, there will be many indirect business
and employment opportunities, mostly related to transport and supply of
the Mine Site and environmental monitoring and management.
Mine Closure. At the end of the
Mine's life, the Site will be reclaimed. The underground development
will be backfilled. Bulkheads at strategic points will help limit the
movement of groundwater. The objective is to create a complete seal to
ensure there is no long term mine drainage. The WRP will be covered and
sealed with a clay-rich soil. Site buildings and infrastructure, if
deemed not to have any future use, will be dismantled and the Site will
be returned to its natural setting.
Background:
The Prairie Creek Mine
("Mine" or "Site") is 100% owned by Canadian Zinc
Corporation ("CZN" or "Canadian Zinc"), and is
situated in the southern Mackenzie Mountains of the Northwest
Territories. The Site presently contains significant infrastructure and
facilities constructed in the early 1980's. The Mine received a Water
Licence (#N3L3-0932) and Land Use Permit (N80F248) in 1980 for mine
operation and the production of lead and zinc concentrates and a
silver-bearing copper concentrate.
The Mine was within three months from production when the then
owner was placed into receivership as a result of the decline in the
price of silver.
Alan Taylor, P.Geo., Chief
Operating Officer & Vice President Exploration and a Director of
Canadian Zinc Corporation, is responsible for the Company's exploration
program, and is a Qualified Person for the purposes of National
Instrument 43-101 and has approved this press release.
Cautionary Statement - Forward Looking
Information
This press release contains
certain forward-looking information. 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
issue of permits, the size
and quality of the company's 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 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 Concerning Estimates of
Measured, Indicated or Inferred Resources
The information presented herein uses the
terms "measured", "indicated" and
"inferred" mineral resources. United States investors are
advised that while such terms are recognized and required by Canadian
regulations, the United
States Securities and Exchange
Commission does not recognize these terms. "Inferred mineral
resources" have significant uncertainty as to their existence, and
as to their economic feasibility. United
States investors are cautioned not to
assume that all or any part of an inferred mineral resource exists or
is economically mineable. It cannot be assumed that all or any part of
an inferred mineral resource would ever be upgraded to a higher
category. United
States investors are cautioned not to
assume that all or any part of measured or indicated mineral resources
will ever be converted into mineral reserves.
For further
information contact:
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