CZN-TSX
CZICF-OTCQB
VANCOUVER, March 7, 2017 /CNW/ - Canadian Zinc
Corporation (TSX: CZN; OTCQB: CZICF) ("the Company" or
"Canadian Zinc") provides a summary of the results from its
recently completed research program investigating the viability of
a central milling facility to develop its volcanogenic massive
sulphide ("VMS") Zn-Pb-Cu-Ag-Au base metal deposits in
central Newfoundland.
Objectives of the Research Program
Canadian Zinc and Buchans Minerals Corporation (100% owned
subsidiary of Minco PLC (AIM:MIO)) undertook the collaborative
study to explore the concept of a centralized milling facility to
process multiple base metal deposits in Newfoundland.
Both companies have base metal exploration projects with several
polymetallic deposits under advanced exploration and early
development within the vicinity of the past producing Buchans and Duck Pond mines in central
Newfoundland. The main copper,
lead, zinc silver and gold deposits that were included in this
study were the Lemarchant and Boomerang-Domino deposits, 100% owned
by Canadian Zinc and the Bobbys Pond, Daniels Pond and Lundberg
deposits, 100% owned by Buchans Minerals.
The Lundberg deposit is the largest, most advanced property in
terms of resource definition, mine planning (with the potential to
have an open pit mine), metallurgical testing and economic studies
completed to date. All the other mineral deposits are smaller,
higher grade deposits that may not individually support a mine and
processing operation and therefore the principal goal of the
research program was to assess the technical and economic viability
of developing a number of these mineral deposits utilizing a common
central processing facility.
The metallurgical research program was funded in part by the
Research & Development Corporation of Newfoundland and Labrador through the GeoEXPLORE Industry-led
program.
Research Study Methodology
To evaluate the potential for centralized milling of some or all
of these deposits, the study included bench scale testing for
process development, preliminary mine plan development and using a
conceptual economic model to assess the economics of various
processing scenarios.
The bench scale test work was undertaken by Thibault &
Associates Inc. of Fredericton, New
Brunswick, to characterize each deposit with respect to
dense media separation ("DMS") and flotation for production
of copper, lead and zinc concentrates. The use of DMS was
considered as an opportunity to reduce transportation costs by
rejecting waste at the mine site before trucking to the central
milling facility. The bench scale flotation testing was completed
in order to develop a common flotation flowsheet with flexibility
for processing of the five different deposits involved, and improve
grades, recoveries and operating costs defined by previous test
programs.
Canadian Zinc and Buchans
provided preliminary mine plans, mining costs and operating costs
for each of their respective deposits. Thibault & Associates
Inc. combined the mining inputs with a process simulation and
costing model to develop a conceptual economic model for the
project, which was used to evaluate various process options. The
variables assessed included several potential mill sites, with or
without DMS, new or used process equipment, mining rate, and
processing feedstock composition for each deposit.
Highlights of Results of Research Program:
- Pre-concentration of the samples by bench scale DMS testing
(prior to flotation) was determined to be technically viable for
the Lundberg deposit, Bobbys Pond samples and the semi-massive and
stringer sulphide sample from the Lemarchant Footwall.
- Metallurgical test results strongly support the development of
a sequential flotation flowsheet for the processing of all five
deposits using a centralized processing facility.
- Bench scale flotation test programs indicated improved grade
and recovery relationship for the production of copper, lead and
zinc concentrates using a common sequential flotation flowsheet
rather than a bulk flotation flowsheet.
- Test results and METSIMTM metallurgical simulations
confirm that selective zinc, lead and copper concentrates at
marketable grades can be produced using a sequential flotation
flowsheet.
- The process simulation and cost assessment results (conceptual
economic modeling) provided key information on which to base future
studies and development plans, including the ongoing exploration
programs that are critical to expanding the deposits and advancing
the viability of developing the central Newfoundland deposits through a centralized
milling facility.
"We are very satisfied and encouraged with the results of the
research program", stated John
Kearney, Chairman and Chief Executive of Canadian Zinc.
"From the important metallurgical standpoint, demonstrating that
these five different deposits can be processed on a common
flotation flowsheet is a key step forward in evaluating the
viability of centralized milling as a development opportunity for
these projects. The initial economic simulations utilizing this new
metallurgical data provides valuable information and direction on
which to guide our future exploration and development plans for our
Newfoundland deposits".
Summary Findings of Research Program
The DMS and metallurgical test results for all five deposits
were reported in November 2016 (see
news release November 3, 2016).
The DMS and metallurgical test programs were followed-up by
Thibault & Associates with a Process Simulation and Cost
Assessment model (AACE Class V – order of magnitude conceptual
assessment) to evaluate and identify the key factors impacting the
operating economics of a centralized processing concept for the
production of the base metal concentrates from the five base metal
deposits.
Multiple conceptual economic scenarios at three potential sites
were developed to simulate the proposed centralized milling
concept. The variables assessed included the different potential
mill sites, with or without DMS, new or used process equipment,
mining rate, and processing feedstock composition for each deposit.
Lundberg, being the largest but lowest grade deposit, was
considered the main plant feed and Lemarchant, Boomerang, Daniels
Pond and Bobbys Pond were treated as satellite deposits.
The metallurgical research study demonstrated that the ore from
the Company's Lemarchant and Boomerang-Domino deposits can be
successfully processed in a central mill using a sequential
flotation flowsheet, and that selective zinc, lead and copper
concentrates at marketable grades can be produced from these
deposits.
The positive results of the research project provide valuable
direction to guide future exploration on the Company's central
Newfoundland deposits and the
conceptual economic modeling provided key information on which to
focus future economic studies and development plans for advancing
the development of these deposits through a centralized milling
facility
It was recommended that further review of the satellite deposits
should be undertaken to examine the potential to increase minable
resource size, run of mine ore grades and mine production rates,
and to evaluate alternative cost effective mining methods.
Acknowledgement
Canadian Zinc would like to recognize the Research &
Development Corporation of Newfoundland and Labrador for its financial support of the
centralized milling research initiative through the GeoEXPLORE
Industry-led program.
About Canadian Zinc
Canadian Zinc is a TSX-listed exploration and development
company trading under the symbol "CZN". The Company's key project
is the 100%-owned Prairie Creek Project, a fully permitted,
advanced-stage zinc-lead-silver property, located in the
Northwest Territories.
Canadian Zinc owns an extensive land package in central
Newfoundland that it is exploring
for copper-lead-zinc-silver-gold deposits. These include the
South Tally Pond project (Lemarchant deposit);
Tulks South project (Boomerang-Domino and Tulks East
deposits) and Long Lake
project (Long Lake deposit).
Canadian Zinc is currently undertaking a 2017 winter drill
program designed to test for mineralized extensions to the
Lemarchant massive sulphide deposit immediately along strike and
dip of the currently defined Lemarchant resource.
Cautionary Statement – Forward-Looking
Information
This press release contains certain
forward-looking information, including, among other things, the
expected completion of acquisitions and the advancement of mineral
properties. This forward looking information includes, or may be
based upon, estimates, forecasts, and statements as to management's
expectations with respect to, among other things, the completion of
transactions, the issue of permits, the size and quality of mineral
resources, future trends for the company, progress in development
of mineral properties, future production and sales volumes, capital
costs, mine production costs, demand and market outlook for metals,
future metal prices and treatment and refining charges, the outcome
of legal proceedings, the timing of exploration, development and
mining activities, acquisition of shares in other companies and the
financial results of the company. There can be no assurances that
such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in
such statements. Mineral resources that are not mineral reserves do
not have demonstrated economic viability. Inferred mineral
resources are considered too speculative geologically to have
economic considerations applied to them that would enable them to
be categorized as mineral reserves. There is no certainty that
mineral resources will be converted into mineral reserves.
Michael J. Vande Guchte,
P.Geo., Vice President of Canadian Zinc Corporation is a Qualified
Person as defined by NI 43-101 and has reviewed and approved the
contents of this press release.
J. Dean Thibault, P.Eng.,
Senior Process Chemical Engineer of Thibault & Associates Inc.
is a qualified person for this release and has reviewed the
contents for accuracy and approved this release. Thibault &
Associates Inc. is a process chemical engineering firm specializing
in process flowsheet development, plant design and process
intensification assessments.
Cautionary Note to United States Investors
The
United States Securities and Exchange Commission ("SEC") permits
U.S. mining companies, in their filings with the SEC, to disclose
only those mineral deposits that a company can economically and
legally extract or produce. We use certain terms in this press
release, such as "measured," "indicated," and "inferred"
"resources," which the SEC guidelines prohibit U.S. registered
companies from including in their filings with the SEC.
SOURCE Canadian Zinc Corporation