Canada Zinc Metals Provides Update on its Akie and Kechika Regional Projects â€" VTEM Survey has Commenced

Vancouver, British Columbia, Canada – Wednesday, August 29, 2012 – Canada Zinc Metals Corp. (TSX Venture Exchange: CZX) is pleased to provide an update on the exploration program currently underway on the Akie and Kechika Regional projects. The Akie property is the Company’s flagship exploration project and is host to the Cardiac Creek SEDEX Zn-Pb-Ag deposit. The Kechika Regional Project, represented by a series of property blocks including Pie and Mt. Alcock, extends northwest from the Akie property for approximately 140 kilometres covering the prospective Gunsteel Formation shale. The southernmost project boundary is located approximately 260 kilometers north-northwest of the town of Mackenzie, in northeastern British Columbia, Canada. 

Regional Exploration Program

An orientation water geochemistry survey was completed in 2011 on the Pie and Akie properties with the purpose of testing for increased levels of sulphate in the water column downstream from known mineral occurrences. The Cardiac Creek (Akie), GPS (Akie) and Barite Breccia (Pie) showings all returned elevated to highly anomalous levels of sulphate indicating that this method can be used as an effective regional exploration tool. The addition of small amounts of barium chloride causes barium sulphate (a mineral intimately associated with SEDEX style deposits) to precipitate, producing a visible turbidity in the sample. Comparison of a given sample to known concentrations of sulphate provides the exploration team with the means to obtain real time field results that can identify anomalies for focused follow-up sampling. Samples will later be sent to a laboratory for trace metal analysis and anion analysis providing a precise measurement of sulphate concentration.

An extensive program was planned across the Company’s southern Kechika property blocks to follow up on 2011 results, including more detailed coverage across the Akie, Pie and Mt. Alcock properties. Primary samples were taken immediately upstream and downstream of selected key secondary streams’ draining watersheds that are believed to be underlain primarily by the highly prospective Gunsteel Formation shale; host to the known SEDEX deposits in the Kechika Trough. Based on positive field observations of turbidity, a series of secondary samples were obtained at key intersections of tertiary streams within anomalous drainages.

In total, over 100 samples were collected and the program is now complete. Based on the initial field observations of turbidity, several areas returned highly anomalous levels of barium sulphate. These include the northern area of Central Pie, West Pie and Mt. Alcock. An additional sample was taken downstream of the GPS showing and confirms its anomalous nature. Interestingly, certain drainages underlain by rocks of the Road River Group, generally thought to be non-prospective, returned anomalous values on the Pie, Mt. Alcock and Yuen properties. These areas will need to be investigated further in order to determine a possible source. The field observations are at this point preliminary results and will be confirmed by the analytical results at a future date, upon which final interpretations will be made. Based on the final interpretation, future sampling will focus on tertiary drainages in order to pinpoint possible sources of sulphate and possible SEDEX style mineralization. For QA/QC purposes, several samples from the 2011 baseline survey were duplicated to test for possible seasonal variation; and a series of duplicates and blanks were inserted roughly every ten samples in the 2012 survey. 

In addition to the water sampling program, a review of the 2006 Pie drill core was undertaken. The 2006 Pie drill program was conducted by Ecstall Mining, and focused on the Central Pie area, immediately west of the main showing and along strike to the southeast near the southern property boundary. The review was intended to confirm the style and character of mineralization previously observed and to obtain a better understanding of the lithologies present within the Central Pie. This information will be used to guide future exploration drill holes on the Central Pie target area.

The Company is also pleased to announce it has commenced a large-scale airborne Vertical Time Domain EM geophysical survey (VTEM). The Company has engaged Geotech Ltd. of Aurora, Ontario, to conduct a detailed orientation survey utilizing their VTEM technology, with 100 metre line spacing planned for the Cardiac Creek deposit area; and expanded coverage of 200 metre line spacing for the remainder of the Akie property. The Company has carefully examined several airborne techniques and after consultation with experienced geophysicists, believes the VTEM survey offers the best opportunity to define lithological and structural contrasts in host stratigraphy; as well as define a response from the deposit itself that would be used elsewhere along the Kechika Trough as an “SEDEX EM” fingerprint.

If the results of this orientation survey are positive, a decision will be made to proceed with a more extensive survey over the Pie and Mt. Alcock property blocks, with a secondary focus on the West Pie target area. The crews and equipment have been mobilized to site and the survey has commenced.

This is the first modern airborne geophysical survey undertaken on the Company’s large land holdings. Prospecting, mapping, soil geochemistry and detailed geophysical ground surveys will be considered in 2013 for any anomalies generated by the 2012 VTEM surveys. The survey results on Mt. Alcock and Pie will also help confirm drill targets. Follow-up airborne VTEM survey infill lines may be warranted in 2013 for detail over any areas identified by the 2012 exploration program as having significant potential for sulphides.

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.





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