Drilling in the Casket Creek area, about 2.5
kilometres to the north of and on strike with the Prairie Creek Mine, is
testing for the down-plunge extension of the inferred mineral resources
and is directed towards a potential vein/structural target near the axis
of an anticlinal fold.
"The 2011 deep hole drilling program has
demonstrated the probable continuation, 1.7 kilometres along strike, of
vein-type mineralization similar to that located within the main zone at
the Prairie Creek Mine. The verification of this continuation has
increased the confidence and probability of expanding the presently
defined resources by significant orders of magnitude", said
Alan Taylor, Chief Operating Officer and Vice
President Exploration.
As reported in the Company's Press Release of
October 3, 2011, a re-interpretation of the geological model indicated
that the main structural target had been intersected by drillhole
PC-10-187 above the known rock formations that host the existing resource.
As a result of the less competent shaly rock of the Cadillac Formation,
the fault zone is weakly developed. Assays from within this fault
structure have now been received, as follows:
Drillhole |
From
(m) |
To
(m) |
Int.
(m) |
Pb
(%) |
Zn
(%) |
Ag
(g/t) |
PC-10-187 |
1348.36 |
1348.88 |
0.52 |
4.92 |
5.90 |
34 |
To further test the vertical extent of this
newly identified structure, wedge drillhole PC-11-187W2 was drilled as an
undercut to the initial hole. This wedge hole successfully intersected the
vertical continuation of the fault structure 50 metres below the PC-10-187
intercept. The PC-11-187W2 intercept was wider, at 3.5 metres, and assayed
higher for zinc, at 11.47% Zn. However, this intersection is
stratigraphically located well above the primary host rock units found at
the mine. Visual mineralization was previously reported within this shear
zone and composite assays have now been calculated based on lab analysis
as follows:
Drillhole |
From
(m) |
To
(m) |
Int.
(m) |
Pb
(%) |
Zn
(%) |
Ag
(g/t) |
PC-11-187W2 |
1384.00 |
1387.50 |
3.50 |
5.26 |
11.47 |
84 |
The drill intercepts are approximately 100
metres west of the fold axis of the main regional antiform in an identical
structural setting to that of the defined vein resource in the main mine
zone.
With the continued success at intersecting the
target structure, which shows increasing intensity with depth, a
subsequent hole, drillhole PC-11-206, was designed to further undercut the
intersected structure by 250 metres within the primary host geological
formations as found at the mine. This hole had reached a depth of 1,365
metres, approximately 230 metres short of target, at the end of October
when the onset of the winter season forced suspension of the 2011 drilling
program. It is planned to complete drillhole PC-11-206 in the 2012
drilling season.
The 2011 diamond drill exploration program at
Prairie Creek was completed for the year at the end of October. In
summary, 26 shallow holes were drilled with the Company's Longyear rig,
including 3,125 metres of coring directed at vein and stratabound targets
in the immediate mine area, and the deep drilling utilizing the TM-2500
rig totalled 2,513 metres of coring in four holes including wedges.
Further assay results not already reported
from the drilling program will be forthcoming later this year.
Quality Assurance/Quality
Control
The drill core samples were cut by diamond saw
and securely, through chain of custody, shipped to Acme Analytical Labs in
Vancouver for initial multi-element assay by ICP-ES analysis. Further
assays and analysis was completed where appropriate and standards,
duplicates and blanks were inserted and included within the analysis. Alan
Taylor, P. Geo., Chief Operating Officer & Vice President Exploration
and a Director of Canadian Zinc Corporation, is responsible for the
exploration program, and is a Qualified Person for the purposes of NI
43-101 and has approved this press release.
Prairie Creek Project
Background
The Prairie Creek Mine is partially developed
with an existing 1,000 tonne per day mill and related infrastructure.
The mineral resource at the Prairie Creek
Project comprises total Measured and Indicated Resources of 5,840,329
tonnes grading 10.71% zinc, 9.90% lead, 0.326% copper, and 161 grams
silver per tonne and 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.
[Technical Report October 2007, Minefill Services Inc Dr. David Stone and
Stephen Godden, Qualified Independent Persons, in compliance with NI
43-101].
The planned development and operation of the
Prairie Creek Mine is currently undergoing Environmental Assessment by the
Mackenzie Valley Environmental Impact Review Board. The public registry
for the Environmental Assessment was closed on September 22, 2011 and it
is expected that the recommendations of the Review Board will be issued
before the end of the year. The Company's environmental assessment report
demonstrates that the Prairie Creek Mine can be successfully operated, and
eventually closed, with minimal impacts on the environment. The assessment
indicates that operation of the Mine will not have any significant impacts
on fish or aquatic life and will not have any significant adverse effect
on the ecological integrity of Nahanni National Park Reserve.
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.