czn: TSX
chairman, President and CEO: John Kearney
Vice President, Exploration and coo: Alan Taylor
Vice President, permitting and environmental affairs: David Harpley
Canadian Zinc Corp. has permits in hand and the majority of the required infrastructure in place to put the Prairie Creek Mine into production, positioning this project to stream some 76 million pounds of zinc, along with 90 million pounds of lead and 2.2 million ounces of silver, per year into global markets. Located in the South Mackenzie Mountains of western Northwest Territories – about midway between Whitehorse, Yukon, and Yellowknife, NWT – Prairie Creek contains a mineral reserve of 5.2 million metric tons averaging 9.4 percent zinc, 9.5 percent lead and 151 grams per metric ton silver. This is enough ore for an 11-year mine-life. In addition, the partially developed zinc project hosts an inferred resource of 6.2 million metric tons averaging 14.5 percent zinc, 11.5 percent lead, 0.57 percent copper and 229 g/t silver. One of the primary objectives of Canadian Zinc’s 2014 exploration program at Prairie Creek is to upgrade some of these inferred resources by infill drilling the main quartz vein on 50-meter centers from surface and underground. Resources shifted to the measured and indicated categories can then be included in the mine plan. The company is also developing a 1,200-meter exploration ramp to allow drilling from the hanging-wall side of the vein. Canadian Zinc says the current resources at Prairie Creek cover only about 2.1 kilometers of a 16-kilometer mineralized trend, providing ample upside potential at the zinc-lead-silver property. The company’s primary objective, however, is to start production at Prairie Creek. The company already has a 1,000-metric-ton-per-day mill, five kilometers (three miles) of underground workings, underground equipment, a heavy and light duty surface fleet, and the permits to develop the mine. Canadian Zinc has hired Tetra Tech and AMC Consultants to assist with an optimization study for the operation. The studies are scheduled to be completed by mid-2014 and, dependent on the progress of financing strategies concurrently being executed, Canadian Zinc plans to begin ordering long lead time items; building the access road; preparing the mine site and completing other startup activities on site. Canadian Zinc, meanwhile, is evaluating strategies for raising funds necessary to complete development of the Prairie Creek Mine. In 2013, the company raised US$10 million through the sale of a royalty to Sandstorm and granted Sandstorm a right of first refusal on any future royalty or stream financing for the Prairie Creek project. Under the agreement, Canadian Zinc can repurchase the royalty if it enters into a metal stream financing under which Sandstorm will provide an upfront deposit of not less than US$90 million to be used to finance part of the capital cost to develop the Prairie Creek Mine. At the end of July, the company closed a C$15.75 million financing. This financing included C$5.75 million raised from the sale of flow-through shares, which will be applied to exploration at Prairie Creek and the company’s volcanogenic massive sulfide properties in Newfoundland. The balance will be applied towards checking things off the development list at Prairie Creek, including underground development; opening the winter access road; completing the optimization study; and reclamation security.
Cash and short-term deposits: C$6.8 million (June 30, 2014)
Working capital: (June 30, 2014; C$15.75 million
financing closed July 31, 2014)
Market capitalization: C$52.3 million (Oct. 8, 2014)
1710 - 650 West Georgia Street • Vancouver, BC Canada V6B 4N9
Tel: 604-688-2001 • Fax: 604-688-2043
www.canadianzinc.com
