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Drilling Intersects 10.77% Zn+Pb and 14.5 g/t Ag at the Akie Project

Vancouver, British Columbia, Canada – Thursday, September 23, 2021 – ZincX Resources Corp. (“ZincX Resources” or the “Company”, TSX Venture Exchange: ZNX) is pleased to announce that assay results have been received from the first hole of the 2021 diamond drilling program targeting the Cardiac Creek deposit.

The Company recently completed a large-diameter HQ diamond drill program that focused on the Cardiac Creek deposit. A total of 5 drill holes were drilled on the Cardiac Creek deposit for a total of 2,669 metres. All five holes successfully tested the Cardiac Creek Zone with excellent recovery of thick intervals of sphalerite-galena-barite mineralization; including highly mottled textures which generally indicate greater than average zinc grades. Over 500 HQ drill core samples have been submitted for analysis and results have now been received from drill hole A-21-155.

2021 Akie Drill Result Highlights

  • Drill hole A-21-155 returned 6.20% Zn+Pb and 9.6 g/t Ag over a true width of 32.76 metres including 10.77% Zn+Pb and 14.5 g/t Ag over a true width of 5.99 metres

Drill hole A-19-155 targeted the northwest area of the high-grade core proximal to historical drill holes A-07-51, A-13-107, and A-17-132.

A broad envelope of mineralisation was intersected from 549.37 to 602.24 metres representing a true width of 39.67 metres that returned 5.3% Zn+Pb and 8.5 g/t Ag. Within this envelope the Cardiac Creek Zone is present from 558.56 to 602.24 metres, grading 6.20% Zn+Pb and 15.5 g/t Ag over a true width of 32.76 metres. Higher-grade intervals are present including 10.77% Zn+Pb and 14.5 g/t Ag over a true width of 5.99 metres from 569.67 to 577.66 metres.  The Footwall Zone was intersected below the Cardiac Creek Zone from 593.45 to 577.66 metres and returned 9.0% Zn+Pb and 12.3 g/t Ag over a true width of 6.59 metres.

The Cardiac Creek Zone is characterized by thick beds of sulphides comprised of laminar pyrite and banded sphalerite. Locally the sphalerite bands display a well-developed “mottled” texture that is due to an enrichment in sphalerite with interstitial carbonate and quartz with galena. The sulphides are interbedded with the host black carbonaceous, siliceous shales of the Gunsteel Formation.

The Footwall Zone is characterized by a similar style of mineralisation to the Cardiac Creek Zone. A massive sulphide lens was encountered below the Footwall Zone that is enriched in pyrite, sphalerite and galena. The calcareous siltstones of the Silurian Siltstone were encountered at a depth of 608.64 metres. The siltstone displays patches of alteration and sulphides characterised by localized silicification, pyrite and sphalerite rich sulphide stringers. The drill hole was terminated in Silurian siltstone of the Road River Group at a depth 641.93 metres. A total of 147 samples including standard QA/QC samples were collected from this drill hole and submitted for analysis.

Significant results from A-21-155 are tabulated below.

Drill Hole From (m) To (m) True Width (m)* Zn (%) Pb (%) Ag (g/t)(†) Zn+Pb (%)
A-21-155 549.37 602.24 39.67 4.46 0.80 8.46 5.27
CC 558.56 602.24 32.76 5.24 0.96 9.61 6.20
including 559.95 586.80 20.14 5.71 1.09 10.89 6.80
including 567.28 586.80 14.64 6.56 1.29 12.56 7.86
including 569.67 586.80 12.85 6.76 1.33 12.92 8.09
including 569.67 583.67 10.50 7.16 1.42 13.25 8.58
including 569.67 577.66 5.99 8.93 1.84 14.55 10.77
FW 593.45 602.24 6.59 7.68 1.31 12.25 9.00
MS 606.11 611.11 3.75 2.17 0.34 2.60 2.51

(*) The true width in metres is calculated utilising the Geovia GEMS software package. The orientation of the mineralised horizon is estimated to have an azimuth of 130 degrees and a dip of -70 degrees. (CC) = Cardiac Creek Zone; (HW) = Hangingwall Zone; (FW) = Footwall Zone; (MS) = Massive Sulphide. (Ɨ) Ag values below detection were given a value half of the detection limit for the purposes of weighted averaging.

Results from the remaining drill holes from the 2021 program are pending and will be reported as they are received.

2021 Drilling Program

The primary objective of the 2021 drill program was to acquire mineralized Zn-Pb-Ag drill core samples for advanced metallurgical testing. This material will be used to further investigate previous metallurgical testing of the mineralization with a focus on enhancing the recoveries and boosting concentrate grades for both zinc and lead; using a state-of-the-art metallurgical testing facility owned by key strategic shareholder Tongling Non-Ferrous Metals of China (Tongling).

The metallurgical test program will commence after the final assay results have been received and tabulated for test composites. This test is intended to enhance metallurgical work conducted and reported by the Company in the 2018 PEA.

The Akie Zn-Pb-Ag Project

The 100% owned Akie property is situated within the Kechika Trough, the southernmost area of the regionally extensive Paleozoic Selwyn Basin and 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 ZincX Resources since 2005 has identified a significant body of baritic-zinc-lead SEDEX mineralization 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 updated the estimate of mineral resources at Cardiac Creek in 2018, as follows:

5% Zinc Cut-Off Grade Contained Metal:
Category Tonnes
(million)
Zn (%) Pb (%) Ag (g/t) Zn (B lbs) Pb (B lbs) Ag (M oz)
Indicated 22.7 8.32 1.61 14.1 4.162 0.804 10.3
Inferred 7.5 7.04 1.24 12.0 1.169 0.205 2.9

The Company announced robust positive results from the 2018 Preliminary Economic Assessment (PEA). The PEA envisages a conventional underground mine and concentrator operation with an average production rate of 4,000 tonnes per day. The mine will have an 18-year life with potential to extend the life-of-mine (LOM) through resource expansion at depth. Key parameters for the PEA are as follows:

Parameter Base Case1
Tonnes Mined 25.8 Mt
Mined Head Grades 7.6% Zn; 1.5% Pb; 13.08 g/t Ag
Tonnes Milled 19.7 Mt
Milled Head Grades (after DMS2 upgrade) 10.0% Zn; 1.9% Pb; 17.17 g/t Ag
Total Payable Metal (LOM) $3,960M3
Initial CAPEX $302.3M including $45.7M contingency
LOM Total CAPEX $617.9M including $58.5M contingency
All-in Total OPEX $102.4 per tonne milled
Pre-Tax NPV7% $649M
Pre-Tax IRR 35%
Pre-Tax Payback 2.6 years
After-Tax NPV7% $401M
After-Tax IRR 27%
After-Tax Payback 3.2 years

1. The base case used metal prices are calculated from the 3 year trailing average coupled with two year forward projection of the average price; and are: US$1.21/lb for zinc, US$1.00/lb for lead and US$16.95 for silver. A CDN$/US$ exchange rate of 0.77 was used. The NPV discount rate is 7%. 2. DMS = dense media separation. 3. All dollar amounts expressed in Canadian dollars.

The PEA is considered preliminary in nature and includes mineral resources, including inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized.

Kechika Regional Project

In addition to the Akie Project, the Company owns 100% of eight of eleven large, contiguous property blocks that comprise the Kechika Regional Project including the advanced Mt. Alcock prospect. The Kechika Regional Project also includes the Pie, Yuen and Cirque East properties which the Company maintains a significant 49% interest with partners Teck Resources Limited (TSX: TECK.B) and Korea Zinc Co. Ltd holding 51%. These properties collectively extend northwest from the Akie property for approximately 140 kilometres covering 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.

Ken MacDonald P.Geo., Vice President of Exploration for the Company, is the designated Qualified Person as defined by National Instrument 43-101 and is responsible for the technical information contained in this release. Mike Makarenko P.Eng, JDS Energy and Mining, is the designated Qualified Person as defined by National Instrument 43-101 and is responsible for the PEA 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

ZINCX RESOURCES CORP.

“PEEYUSH VARSHNEY”

                                                           
PEEYUSH VARSHNEY, LL.B
CEO & CHAIRMAN

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