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Canadian Zinc and Nahanni Butte Dene Band
Sign Impact and Benefit Agreement for the Prairie Creek Project
Yellowknife, Northwest Territories: January 21,
2011 - 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
benefits 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 to 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", said Minister McLeod.
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
sponsoring and supporting 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, 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 and mine production costs, demand and market outlook for
metals, future metal prices and treatment and refining charges, the outcome
of legal proceedings and the financial results of the company. 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.
For
further information contact:
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