Canada Zinc Metals Announces Commencement of Drilling on the Pie Option Properties
Vancouver, British Columbia, Canada –Tuesday, September 13, 2016 – Canada Zinc Metals Corp. (“Canada Zinc” or “the Company”, TSX Venture Exchange: CZX) is pleased to announce that Teck Resources Limited (“Teck” TSX: TCK.B) has mobilized a drilling crew to the site and has commenced drilling on the optioned Pie-Yuen-Cirque East properties (collectively the “Pie Option Properties”).
2016 Pie Option Drilling Program
Teck has mobilized a drill crew to the Pie Option Properties and drilling has commenced. Field work and ground gravity geophysics during the 2016 field program has refined a number of ranked targets down to several high priority targets on the Pie Option properties that will be tested for the presence of SEDEX Zn-Pb-Ag style mineralisation. An initial drill test is planned for the Pie Main target with additional drilling contingent upon results and schedule. Drilling operations will be based out of Teck’s Cirque exploration camp situated on the banks of the Paul River and located approximately 20 kilometres northwest of the Company’s flagship Akie property. It is expected that drilling will continue throughout September.
Pie Property – Pie Main Target
Teck’s comprehensive exploration strategy has outlined a top-ranked target in the central area of the Pie property, known as the Pie Main. The area has been historically explored by a total of 11 drill holes primarily testing the contact between the Gunsteel formation shale and the Kwadacha Reef limestone for the presence of stratabound Zn-Pb-Ag sulphide mineralisation.
The 2016 drill target is located approximately 1 kilometre to the west of the historical drilling and trenching and will test the down-dip extension of the prospective Gunsteel formation shale. This target is situated within the same thrust panel of rocks that host the nearby Cardiac Creek deposit, located approximately 15 kilometres to the southeast. The recent airborne gravity gradiometer (AGG) survey defined a 1,000 metre by 500 metre AGG anomaly over the target area with confirmation provided by ground gravity.
The surface projection of the target horizon is associated with a multi-element soil anomaly including Zn, Pb, Ag, Ba, Fe, Tl and Hg with significant Pb and Zn values in excess of 313 ppm and 870 ppm respectively. This soil anomaly extends over 1.4 kilometres and is associated with a much larger soil anomaly that covers much of the Pie Main target area over a distance of 4 kilometres. Historical drilling (P-80-01) in the immediate vicinity of the target intersected quartz-calcite veining within the Gunsteel formation shale that locally contained sphalerite grades up to 4.7% Zn*.
Yuen Property – China Ridge Target
Geological mapping in 2015 on the Yuen property identified a strike extension of the prospective Gunsteel formation shale, in the area referred to as China Ridge that was previously thought to be underlain by non-prospective Road River Group rocks. Limited historical work in the area identified Earn Group rocks on China Ridge as well as notable Pb anomalism in soils. Soil sampling of this new target area defined a 2.2 x 0.5 kilometre Zn (627 ppm average; peak 6,268 ppm), Pb (76 ppm average; peak 270 ppm) + Ag anomaly. The recent AGG survey flown by CGG outlined a distinct gravity high that is coincident with the soil anomaly. Ground gravity lines were run over the AGG anomaly to confirm its presence and solidify the China Ridge as a viable drill target.
2016 Pie Option Field Program
In addition to the planned drilling, Teck is conducting a field program designed to improve the definition of key targets, building on the results and work from the previous two field seasons.
The current program being implemented includes:
- A total of 22 line-km of geological mapping and prospecting over the highest ranked targets with high density rock sampling for laboratory and portable XRF (pXRF) analysis (approximately 150 and 650 samples, respectively)
- Soil sampling over targets developed in 2016 as well as in-fill areas of previously un-sampled Earn Group stratigraphy (approximately 700 samples)
- A total of 9.7 line-km of ground gravity survey over Pie Main, West Yuen and Cirque East targets to be completed by SJ Geophysics prior to drill testing. Additional line-kilometres will be considered dependant on results.
Peeyush Varshney, President and CEO, of the Company commented, "The drilling on the Pie Option Properties represents the synthesis of a comprehensive and modern exploration methodology as applied by Teck. The drilling on the Pie and Yuen properties represents a noteworthy step forward in the advancement of these two properties and will showcase the potential of the Company’s significant mineral tenure that comprises the Kechika Regional project. We look forward to the results of the drilling and field programs from the 2016 exploration season.”
The Company will provide further details of the exploration program once confirmation is received from Teck. Drilling will be conducted under the authority of the Company’s drill permits which were previously issued.
Pie Option Agreement
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 using an integrated approach to exploration to decrease risk and 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.
Expenditures for the 2016 exploration program on the Pie Option Properties are anticipated to be on the order of $1.5 to $1.7 million.
(*) As reported in Hodgson G.D., Thompson J.F.H., 1980. Pie Claims, B.C.: Geology, Drilling Etc. 1980, B.C. Ministry of Energy and Mines, Assessment Report 8647, 76p.
Separately, subject to regulatory approval, the Company has granted a total of 945,000 stock options to directors and officers of the Company, exercisable for a period of 10 years, at a price of 40 cents per share.
The Kechika Regional Project
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 generative portfolio of Kechika Regional properties offer shareholders and interested exploration companies high potential opportunities for new discoveries in the Kechika Trough.
The Company’s flagship 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