Canada Zinc Metals Completes Large Airborne Geophysical Survey
Vancouver, British Columbia, Canada - April 10, 2015 – Canada Zinc Metals Corp. (“Canada Zinc” or “the Company”, TSX Venture Exchange: CZX) is pleased to announce that CGG of Mississauga, Ontario has completed a large helicopter-borne FALCONTM gravity gradiometry survey over the Akie, Mt. Alcock and Yuen North properties. The Company previously announced the commencement of the survey in November 2014; however inclement weather forced an early shutdown of the program. Favorable weather conditions in mid-February allowed the recommencement of the survey and it was completed during March. This survey represents the first of its type to be flown in the Kechika Trough.
The survey was flown over two large property blocks covering the Akie, Mt. Alcock and Yuen North properties. Flight lines were flown orthogonal to the dominant geological fabric of the area (NE–SW @50°) with a nominal spacing of 200 metres. The two survey blocks represent an approximate total of 940 line kilometres. As previously announced, Teck Resources Limited (“Teck” TSX:TCK.B) undertook a similar survey over the Company’s 100%-owned Pie, Cirque East and Yuen contiguous block of properties. That survey totaled approximately 840 line kilometres, for combined survey coverage of 1,780 line kilometres, covering a lineal distance of 45 kilometres of prospective Gunsteel Formation stratigraphy.
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.
The primary goal of the airborne gravity survey was to target large massive sulphide bodies that are expected to produce positive gravity anomalies within the highly prospective Gunsteel Formation.
The previous 2012 and 2013 VTEM surveys allowed the Company to accurately trace the Gunsteel Formation across the Akie property and along the entire 140 kilometres of strike length encompassing the Kechika Regional properties, due to its conductive characteristics. Known mineralization such as the Cardiac Creek and Mt. Alcock deposits are located along these conductive trends and data collected from the gravity survey will be used in drill targeting along strike of these zones. The gravity data will also be useful in delineating new targets in areas of coincident anomalous soil and rock samples and EM conductivity. SEDEX lead-zinc-silver deposits are known to commonly exhibit positive gravity anomalies.
Data from the surveys is anticipated to be available in the coming weeks; affording the Company time to use the acquired information to assist in drill targeting for the planned 2015 drill program. Results from this survey will be compiled along with airborne VTEM survey data collected from earlier surveys in 2012 and 2013. To assist in the data processing, interpretation, definition and delineation of gravity anomalies the Company has retained the services of Kit Campbell of Campbell and Walker Geophysics Ltd.
President and CEO of Canada Zinc Metals, Peeyush Varshney, commented, “The gravity gradiometry survey is a key component in Canada Zinc Metals’ exploration strategy, representing an effective tool to rapidly assess the Company’s Akie property and several of the other extensive tenure holdings in the Kechika Trough. We look forward to making use of the airborne geophysical results as we continue to prioritize our list of key drill targets for the 2015 drill program. The gravity survey will provide key insights into the characteristics of the Gunsteel Formation, especially in areas of known exposed barite mineralization, such as at Mt. Alcock and at the Sitka showing on the Akie property."
Separately, the Company has granted a total of 3.775 million stock options to directors and officers of the Company, exercisable for a period of 10 years, at a price of 23 cents per share.
Previously, granted stock options to a number of employees and consultants to acquire 172,500 common shares at a price between 50 cents per share and $1.05 per share, expiring between Feb. 11, 2018, and Nov. 24, 2020, have been repriced to 23 cents per share.
These transactions are subject to regulatory approval.
Akie and Kechika Regional Projects
The Company owns 100% of eleven large, contiguous property blocks that make up the Akie and Kechika Regional projects. The Kechika Regional Project, including the Pie, Yuen, Cirque East and Mt. Alcock properties, extends northwest from the Akie property for approximately 140 kilometres, covering the prospective Gunsteel Formation shale; the main host rock for known SEDEX zinc-lead-silver deposits in the Kechika Trough of northeastern British Columbia. The southernmost project boundary is located approximately 260 kilometres northwest of the town of Mackenzie, British Columbia, Canada.
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 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 Canada Zinc Metals 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 has outlined a NI 43-101 compliant mineral resource at Cardiac Creek, including an indicated resource of 12.7 million tonnes grading 8.4% zinc, 1.7% lead and 13.7 g/t silver (at a 5% zinc cut-off grade) and an inferred resource of 16.3 million tonnes grading 7.4% zinc, 1.3% lead and 11.6 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