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Canadian Zinc Reports Success With Prairie Creek Exploration Drilling

- New stratabound mineralized area discovered

- Multiple vein mineral intercepts

- Deep-hole target structure identified

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Mots clés associés :   Copper | Zinc |

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 3, 2011) - Canadian Zinc Corporation (News - Market indicators)(OTCQB:CZICF) ("the Company" or "Canadian Zinc") is pleased to report positive results from its diamond drilling activities at the Company's 100% owned Prairie Creek Mine in the Northwest Territories.

The summer 2011 exploration drill program at the Prairie Creek Mine has had success on three fronts:

  • New area of stratabound mineralization was intersected within 150 metres of the existing underground workings.
  • Multiple new vein intercepts intersected above the existing mineral resource.
  • Deep-hole exploration program at Casket Creek, 1.6 kilometres to the north and along strike, intersected the main host structure for vein mineralization.

To the end of September, a total of 4,788 metres of surface diamond drilling had been completed by drill rigs owned and operated by the Company. The Longyear drill rig drilled 2,802 metres of core in 18 short holes around the immediate Prairie Creek Mine of which the Company has received assays and reporting on the first 9 holes. The TM-2500 drill rig drilled 1,986 metres of core, in two deep holes and internal wedge holes in the Casket Creek area. Drilling is continuing at Casket Creek and assays pending.

Mine Area Drilling

The Company's Longyear rig was used to drill relatively short holes in the proximity of the Prairie Creek Mine. PC-11-188, collared at the minesite, was abandoned due to excessive overburden and hole PC-11-189 reported no significant assays. Drillhole PC-11-190 intersected a new area of stratabound-type mineralization approximately 150 metres below the 870 metre mine level, which is the lowest level of current developed workings at the Prairie Creek Mine. The assay results from Drillhole PC-11-190 are as follows:

Drillhole Stratabound Composites – Prairie Creek Mine Area

Drillhole From (m) To (m) Int (m) Pb (%) Zn (%) Ag (g/t)
PC-11-190 244.40 247.00 2.60 1.61 7.15 12
PC-11-190 252.10 254.80 2.70 3.56 8.84 26

These two intercepts represent stacked sulphide horizons and are located approximately 100 metres south of the defined main stratabound body which has a Measured and Indicated Resource of 1.3 million tonnes averaging 6.0% Pb and 10.5% Zn. The intersections represent true thicknesses and exhibit the same style of mineralization as found in the resource and demonstrate the potential to expand this stratabound resource. There are few drillholes in this particular area and further follow-up drilling is warranted.

A series of 25 metre spaced drill holes were targeted in the upper level vein area, close to surface, and above the presently defined vein resource. The vein structure was intersected and identified in each completed hole. The results received to date of the vein drilling are as follows:

Drillhole Vein Composites – Prairie Creek Mine Area

Drillhole From
(m)
To
(m)
Interval
(m)
Pb
(%)
Zn
(%)
Ag
(g/t)
Cu
(%)
Core
Recovery %
PC-11-191 67.37 69.02 1.65 2.14 10.52 35 0.124 81
PC-11-192 65.00 68.40 3.40 6.32 5.64 74 0.100 91
PC-11-192 80.40 85.10 4.70 3.71 8.38 54 0.183 92
PC-11-193 64.00 65.50 1.50 7.34 8.70 263 0.650 29
PC-11-194 57.40 61.20 3.80 5.16 6.09 59 0.069 74
PC-11-194 66.20 68.70 2.50 5.63 6.55 54 0.082 91
PC-11-195 67.80 69.00 1.20 3.96 2.79 114 0.337 86
PC-11-196 70.20 77.72 7.52 8.78 5.07 138 0.258 25

The vein mineralization at Prairie Creek is hosted within a structural fault zone and this zone was identified in all completed holes. Due to the close proximity to surface, the mineralization was highly weathered and 70–90% oxidized, which inhibited core recovery and grade determination. Actual grades and true thicknesses will only be verified upon mining. The proposed mining operation at Prairie Creek will initially be targeting the accessible upper level vein resource. The existing 930 metre mine level workings are located approximately 75 metres below the drill intercepts.

North Extension Drilling, Casket Creek Area

Drilling in the Casket Creek area, about 2.5 kilometers to the north and on strike of the Prairie Creek Mine, is testing for a 1.6 kilometre down-plunge extension of the inferred mineral resources and is directed towards a potential vein/structural target at the nose of an anticlinal fold.

Drillhole PC-10-187, which commenced last year, and had reached a depth of 657 metres when drilling was suspended for the season in October 2010, was restarted in June 2011. Drillhole PC-10-187 intersected its target and reached a final depth of 1,630 metres in early August 2011. A re-interpretation of the geological model indicated that the main structural target had been intersected by Drillhole PC-10-187 at a very high level in the stratigraphic column above the prime rock units that host the existing resource. As a result, the fault zone was poorly developed (~2 metres wide) within a less competent rock unit of the Cadillac Formation. A small mineralized zone was visually identified within this structure and assays are pending. 

To further test the newly identified structure for its vertical extent Drillhole PC-11-187W2 was drilled as a moderate undercut. This wedge hole successfully intersected the structure, which increased in intensity and width to 4.5 metres, approximately 50 metres below the Drillhole PC-10-187 intercept. Again, this intersection was high in stratigraphy. Visual mineralization was also observed within the shear zone and samples were taken with assays pending. 

With the continuous success in intercepting the target structure, which showed increasing intensity with depth, a subsequent hole, Drillhole PC-11-206, is now being drilled to undercut the anticipated structure by 250 metres. It is anticipated that this hole should intersect the prime target geology/structural area by late October.

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 now awaits the recommendations of the Review Board. 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

Canadian Zinc Corp

EN DÉVELOPPEMENT
CODE : CZN.TO
ISIN : CA1368021053
CUSIP : 136802-10-5
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Canadian Zinc est une société développant des projet miniers de zinc et d'argent basée au Canada.

Canadian Zinc est en développement de projets de zinc, d'argent et d'or au Fidji.

Son principal projet en développement est TUVATU au Fidji et son principal projet en exploration est PRAIRIE CREEK au Canada.

Canadian Zinc est cotée au Canada, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 30,6 millions CA$ (23,2 millions US$, 20,1 millions €).

La valeur de son action a atteint son plus haut niveau récent le 20 février 2004 à 2,04 CA$, et son plus bas niveau récent le 04 décembre 2015 à 0,06 CA$.

Canadian Zinc possède 265 920 016 actions en circulation.

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