Canada Zinc Metals Announces Preliminary Plans for 2016 Exploration Program on the Companyâ€™s Pie Option Properties
Vancouver, British Columbia, Canada – Wednesday, June 15, 2016 – Canada Zinc Metals Corp. (“Canada Zinc” or “the Company”, TSX Venture Exchange: CZX) is pleased to announce it recently met with Teck Resources Limited (“Teck” TSX:TCK.B) to review preliminary exploration plans for 2016 on the optioned Pie-Yuen-Cirque East properties.
The Company owns 100% of eleven, large, contiguous property blocks that comprise the Akie and Kechika Regional projects. The Company’s flagship Akie Project is host to the Cardiac Creek deposit and remains the primary corporate focus. The Kechika Regional Project includes the Pie, Yuen, Cirque East and Mt. Alcock properties extending northwest from the Akie property for approximately 140 kilometres along the strike of the highly prospective Gunsteel Formation shale; the main host rock for known SEDEX zinc-lead-silver deposits in the Kechika Trough of northeastern British Columbia. These projects are located approximately 260 kilometres north northwest of the town of Mackenzie, British Columbia, Canada.
The Company’s generative portfolio of Kechika Regional properties offers shareholders and interested exploration companies high potential opportunities for new discoveries in the Kechika Trough.
Pie Option Properties
The Pie, Yuen and Cirque East properties are the subject of an option agreement concluded on September 9, 2013 with Teck and its JV partner, Korea Zinc Co., Ltd. ("Korea Zinc" KRX:KorZinc 010130). The option agreement would see Teck and Korea Zinc spend up to $8.5 million to acquire up to 70% interest in the Pie, Yuen and Cirque East properties.
Teck has spent in excess of $1.3 million in exploration expenditures over two field seasons on the Pie Option properties utilizing an integrated approach to exploration to maximize the potential for discovery. In accordance with the Option Agreement Teck must spend an additional $2.2 million by the end of 2017 to exercise the “First Option” and earn Teck/Korea Zinc an undivided 51% interest in the Pie Option properties. Upon exercising the First Option Teck would have an additional option (the "Second Option") to acquire a further 19% interest in the properties for a total of 70%, by incurring an additional $5.0 million in exploration expenditures on or before December 31, 2019.
2016 Preliminary Exploration Program
The 2016 planned field program will be conducted by Teck from their Cirque exploration camp located approximately 22 km northwest of the Company’s flagship Akie property. The work is expected to commence in July and will be completed by early fall.
An airborne gravity gradiometry (AGG) survey totaling 874 line kilometres was completed by CGG in 2015 over the entire prospective area of the Pie Option properties. Teck has processed the data and produced inversion models of key targets and anomalies. These models have been assessed in conjunction with an hierarchical list ranking targets based on VTEM geophysics, rock and soil geochemistry, historical drilling and geological mapping data.
Preliminary exploration plans for the 2016 program will focus on firming up a number of key drill targets that have been developed using, in part, airborne gravity gradiometry data. Drilling is planned on at least one target. Expenditures are anticipated to be between $1.5 and $1.7 million. The Company has drill permits in good standing for both Yuen and Pie properties and Teck will utilize these permits under the authority of the Ministry of Energy and Mines.
Peeyush Varshney, President and CEO, of the Company commented, "We look forward to Teck commencing the exploration program this summer on the Pie Option properties. This level of exploration activity continues to shine a favorable light on the tremendous exploration potential of the Kechika Trough and furthers our corporate goal of developing the regional Kechika properties as we advance the flagship Akie asset.”
The Company will provide further details of plans once they are finalized and confirmed by Teck.
The Akie Zn-Pb-Ag Project
The Akie property is situated within the Kechika Trough, the southernmost area of the regionally extensive Paleozoic Selwyn Basin, one of the most prolific sedimentary basins in the world for the occurrence of SEDEX zinc-lead-silver and stratiform barite deposits.
Drilling on the Akie property by Canada Zinc Metals since 2005 has identified a significant body of baritic-zinc-lead-silver SEDEX mineralisation known as the Cardiac Creek deposit. The deposit is hosted by siliceous, carbonaceous, fine grained clastic rocks of the Middle to Late Devonian Gunsteel Formation.
The Company has outlined a NI 43-101 compliant mineral resource at Cardiac Creek, including an indicated resource of 19.6 million tonnes grading 8.2% zinc, 1.6% lead and 13.6 g/t silver (at a 5% zinc cut-off grade) and an inferred resource of 8.1 million tonnes grading 6.8% zinc, 1.1% lead and 11.2 g/t silver (at a 5% zinc cut-off grade).
Ken MacDonald P.Geo., Vice President of Exploration, is the designated Qualified Person as defined by National Instrument 43-101 and is responsible for the technical information contained in this release.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
ON BEHALF OF THE BOARD OF DIRECTORS
CANADA ZINC METALS CORP.
PEEYUSH VARSHNEY, LL.B
CEO & CHAIRMAN