Canada Zinc Metals Closes Private Placement
Vancouver, British Columbia, Canada – Wednesday, March 2, 2011 – Canada Zinc Metals Corp. (TSX Venture Exchange: CZX) (the “Company”) is pleased to announce that, further to its news release dated February 7, 2011, it has received final TSX Venture Exchange acceptance with respect to the closing of its non-brokered private placement. The Company issued 4,845,000 units at a price of $0.77 per unit for gross proceeds of $3,730,650. Each unit consists of one flow-through common share and one-half share purchase warrant of the Company. Each whole warrant entitles the holder to purchase one additional common share at a price of $0.95 for a period of 18 months from closing.
The proceeds are to be used for further exploration of the Akie SEDEX zinc-lead property and to explore the balance of the Company’s portfolio of mineral holdings (87,911 hectares), located within the highly prospective Kechika Trough SEDEX zinc-lead basin of northeastern British Columbia.
The Company shall pay $157,657.50 in cash as finder’s fees on a portion of the private placement. The securities issued are subject to a four month hold period expiring July 1, 2011.
About the Akie Property
The Akie zinc-lead property is situated within the southern-most part (Kechika Trough) 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 Inmet Mining Corporation during the period 1994 to 1996 and by Canada Zinc Metals since 2005 has identified a significant body of baritic-zinc-lead SEDEX mineralization (Cardiac Creek deposit). The deposit is hosted by variably siliceous, fine grained clastic rocks of the Middle to Late Devonian ‘Gunsteel’ formation. The Company has outlined a NI 43-101 compliant inferred resource of 23.6 million tonnes grading 7.6% zinc, 1.5% lead and 13.0 g/t silver (at a 5% zinc cut off grade).
Two similar deposits, Cirque and Cirque South Cirque, located some 20 km northwest of Akie and owned under a joint venture by Teck Resources and Korea Zinc, are also hosted by Gunsteel rocks and have a combined geologic inventory in excess of 50 million tonnes (not 43-101 compliant) grading approximately 10% combined zinc + lead.
In addition to the Akie property, Canada Zinc Metals Corp. controls a large contiguous group of claims which comprise the Kechika Regional project. These claims are underlain by geology identical to that on the Akie property (Cardiac Creek deposit) and Cirque. This project includes the 100% owned Mt. Alcock property, which has yielded a historic drill intercept of 8.8 metres grading 9.3% zinc+lead, numerous zinc-lead-barite occurrences, and several regional base metal anomalies.
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