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Drilling intersects 9.09% Zn+Pb and 14.4 g/t Ag at the Akie Project

Vancouver, British Columbia, Canada – Thursday, December 2, 2021 – ZincX Resources Corp. (“ZincX” or the “Company”, TSX Venture Exchange: ZNX, US: ZNCXF, FRA: M9R) is pleased to announce that assay results have been received from the remainder of the 2021 diamond drill holes that targeted 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 displaying the 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-21-158 and A-21-159.

Drill hole A-21-158 returned 9.09% Zn+Pb and 14.4 g/t Ag over a true width of 5.83 metres contained within a longer mineralized interval of 6.21% Zn+Pb and 10.3 g/t Ag over a true width of 14.38 metres.

Drill hole A-21-159 returned 5.59% Zn+Pb and 8.7 g/t Ag over a true width of 19.55 metres including 8.92% Zn+Pb and 10.3 g/t Ag over a true width of 3.10 metres.

Drill holes A-21-158 and A-21-159 were both drilled from the same setup as A-21-157. Both holes targeted the southeast strike extents of the high-grade core of the Cardiac Creek deposit. Drill hole A-21-158 tested the up-dip portion of this target area. Surrounding holes include A-11-98, A-14-115, and A-17-138. Drill hole A-21-159 tested the down-dip portion of this area surrounded by A-05-33, A-08-64 and A-06-40. Both drill holes returned significant intervals of sulphide mineralisation.

A-21-158

A broad envelope of mineralisation was intersected from 275.50 to 305.23 metres representing a true width of 25.34 metres that returned 4.82% Zn+Pb and 7.4 g/t Ag. Within this envelope the Cardiac Creek Zone is present from 288.37 to 305.23 metres, grading 6.21% Zn+Pb and 10.3 g/t Ag over a true width of 14.38 metres. Higher-grade intervals are present including 9.09% Zn+Pb and 14.4 g/t Ag over a true width of 5.83 metres from 294.42 to 301.25 metres; The Zone hosts a total of 9 samples that grade in excess of 7% Zn and 1% Pb over an aggregate core length of 5.44 metres. Within the Cardiac Creek Zone individual zinc grades range up to 17.84% and lead grades range up to 3.21%. 

The Cardiac Creek zone is present from 288.37 to 305.23 metres and is characterized by abundant sulphide beds interbedded with the host black siliceous shale of the Gunsteel Formation. The sulphide beds are internally laminated and are comprised of sphalerite, galena and pyrite. Fine mottling of the sulphides is noted at the start of the zone and increases in intensity towards the lower contact. The lower portion of the zone is comprised of almost 70% sulphides and is marked by an increase in massive barite towards the lower contact of the zone. The Cardiac Creek Zone is underlain by a 5.16 metre thick interval of massive bedded barite intermixed with sphalerite-rich sulphides. Debris flows and fossiliferous limestones of the Paul River Formation are present from 307.85 to 309.85 metres. The hole ended in calcareous siltstone of the Road River Group at a depth of 314.96 metres.

A total of 114 samples including standard QA/QC samples were collected from this drill hole and submitted for analysis.

A-21-159

A broad envelope of mineralisation was intersected from 386.83 to 440.75 metres representing a true width of 38.53 metres that returned 4.09% Zn+Pb and 6.9 g/t Ag. Within this envelope the Cardiac Creek Zone is present from 401.50 to 428.83 metres, grading 5.59% Zn+Pb and 8.7 g/t Ag over a true width of 19.55 metres. Higher-grade intervals are present including 6.43% Zn+Pb and 9.5 g/t Ag over a true width of 13.66 metres from 409.75 to 428.83 metres as well as 8.92% Zn+Pb, and 10.3 g/t Ag over a true width of 3.10 metres from 424.50 to 428.83 metres. A narrow Footwall Zone is present from 432.40 to 440.75 meres over a true width of 5.98 metres that returned 5.06% Zn+Pb, and 9.1 g/t Ag including 7.16% Zn+Pb,  and 10.2 g/t Ag over a true with of 3.80 metres from 432.40 to 437.70 metres. The Zone hosts a total of 13 samples that grade in excess of 7% Zn and 1% Pb over an aggregate core length of 8.01 metres. Within the Cardiac Creek Zone individual zinc grades range up to 15.64% and lead grades range up to 2.95%. 

The Cardiac Creek Zone, from 401.50 to 428.63 metres, is characterised by abundant sulphide bands interbedded with the host black siliceous shale of the Gunsteel Formation. The sulphides are comprised of sphalerite, galena and pyrite. The key mottling texture present in the sphalerite-rich bands is observed to increase in intensity towards the base of the zone. The Footwall Zone is present from 432.40 to 440.75 metres and is separated from the Cardiac Creek Zone by a 3.77 metre thick shale interbed. The style and character of the mineralization intersected is similar to that of the Cardiac Creek Zone. A 7.41 metre interval of laminar to nodular bedded barite with pyrite underlies the Footwall Zone. The debris flow of the Paul River Formation is present from 448.06 to 451.00 metres and the hole ended in calcareous siltstone of the Road River Group at a depth of 532.40 metres.

A total of 126 samples including standard QA/QC samples were collected from this drill hole and submitted for analysis.

(*) 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. Ag values below detection were given a value half of the detection limit for the purposes of weighted averaging.

Results have now been received from all of the outstanding drill holes from the 2021 exploration program.

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 state-of-the-art metallurgical testing facility owned by key strategic shareholder Tongling Non-Ferrous Metals of China (Tongling).

Tongling had previously agreed to fully fund the drilling and metallurgical test program with ZincX Resources as the manager of the drill program. 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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