CZN-TSX
CZICF-OTCQB
VANCOUVER, Aug. 10, 2017 /CNW/ - Canadian Zinc
Corporation (TSX: CZN; OTCQB: CZICF) ("the Company" or
"Canadian Zinc") reports its interim financial results and
development activities for the three and six month periods ended
June 30, 2017.
This news release should be read in conjunction with the
Company's unaudited interim consolidated financial statements for
the three and six month periods ended June
30, 2017 and the related management's discussion and
analysis (MD&A) which are available on the Company's website
at www.canadianzinc.com, under the "Financials" section, or
on SEDAR (www.sedar.com).
Financial Results for the Second Quarter of 2017
For the three and six month periods ended June 30, 2017, the Company reported a net loss
and comprehensive loss of $3,238,000
and $5,800,000, respectively,
compared to a net loss and comprehensive loss of $866,000 and $1,643,000 for the same periods ended
June 30, 2016.
For the three and six month periods ended June 30, 2017, the Company expensed $2,438,000 and $3,804,000, respectively on its exploration and
evaluation programs at the Prairie Creek Mine, compared to
$385,000 and $693,000 for the three and six month periods
ended June 30, 2016. The higher
expenditure in 2017 results from extensive work on the feasibility
study for the Prairie Creek Mine and the ongoing environmental
assessment and permitting for the all season road, which were not
as high in the comparable periods.
For the three and six month periods ended June 30, 2017, the Company also expensed
$28,000 and $402,000, respectively on its exploration and
evaluation properties in central Newfoundland compared to $51,000 and $111,000 for the comparative periods.
Prairie Creek Project
The Prairie Creek mine site was re-opened in late April and
operates on a care and maintenance basis throughout the season. A
week-long site engineering assessment was carried out at the mine
in early May by a team of Ausenco engineers and contractors.
Three separate programs relating to the all season Road were
completed. The programs were part of the Company's further
commitments to the road/route assessment during the regulatory
processes and involved centre-line survey location for the all
season Road route and additional baseline environmental studies
including, bird, wildlife and vegetation studies. The helicopter
supported programs were carried out from bases at both the mine
site and at the community of Nahanni
Butte.
Feasibility Study to be Completed in Third
Quarter
The Definitive Feasibility Study ("DFS"), which is being
carried out by AMC Mining Consultants (Canada) Ltd. ("AMC") and Ausenco
Engineering Canada Inc. ("Ausenco") to facilitate the
raising of project debt financing for the Prairie Creek Project is
in the advanced stages. It is expected that the DFS will be
completed in the third quarter.
Ausenco is also developing a contracting and procurement
strategy for further stages of work, which will align with the
project execution schedule and will serve to support the capital
cost estimate and make provision for the identified execution risks
and opportunities.
Concurrently, the Company is working with HCF International
Advisers ("HCF") as financial advisers with the goal of
arranging debt financing of up to 70% of the capital expenditures
required once the DFS is completed.
Mineral Processing Optimization
In tandem with the development of the DFS, the Company also
initiated a mineral processing optimization program in January 2017, which included testing of new
composite bulk samples collected from underground drill holes
completed at the Prairie Creek Mine in 2015. The principal
objectives of the program are to optimize the proposed mineral
processing flow sheet and simplify the flotation circuit design,
thereby improving projected metal recoveries and lowering milling
costs.
Prairie Creek Permitting Update
The environmental assessment for the Company's permit
application for use of the access road on an all season basis is
nearing completion and it is expected that a Report of
Environmental Assessment by the Mackenzie Valley Review Board will
be submitted to the Minister of Indigenous and Northern Affairs by
the end of August 2017.
The Review Board held Community Hearings in Nahanni Butte on April
24, 2017 and in Fort
Simpson on April 25, 2017. The
Community Hearings provided an opportunity for local communities to
hear and to participate in a discussion of the issues related to
the proposed road development and to raise any concerns directly
with the Review Board. There was strong support shown for the
Prairie Creek project from both communities.
The Environmental Assessment process has now been completed and
the public record has been closed.
The Review Board is required to decide if the project is likely
to cause significant adverse impacts or cause significant public
concern. The Review Board Report of Environmental Assessment will
describe the Board's decision and its reasons for the decision and
may include recommended mitigation measures. The report of the
Review Board is then sent to the Minister of Indigenous and
Northern Affairs.
Newfoundland
Exploration Work
Canadian Zinc owns and is exploring an extensive mineral land
package in central Newfoundland
that includes three large VMS projects, each containing defined
mineral deposits.
In June 2017, the diamond drilling
exploration program at the South Tally Pond project resumed. The
2017 summer drill program consists of up to 5,000 metres in 24
diamond drillholes and is designed to continue to test for
mineralized extensions to the Lemarchant massive sulphide deposit.
The drilling will initially focus on further testing the up-dip
mineralization discovered during the 2017 winter drill program and
will be followed by further drill testing at the Lemarchant
Northwest Zone.
The summer drill program will also include initial drill testing
of previously defined electromagnetic ("EM") geophysical
anomalies at the North and South Lemarchant target areas, located
approximately 500 metres along strike from the Lemarchant
deposit.
A ground EM geophysical program is also underway at the South
Tally Pond project with the aim of defining new drill targets. The
geophysical program is focused on three priority target areas
located immediately south and east of the Lemarchant deposit. Each
area is associated with airborne EM conductors that remain untested
by drilling.
At the Spencers Pond prospect, located approximately 2 km
southwest of the Lemarchant deposit, initial drill testing of newly
defined EM targets is also being planned. In this area, a single,
historic drillhole intersected massive sulphide (pyrite) over 0.5
metres associated with geochemically similar mudstones to that
which overly the Lemarchant deposit.
In February 2017, the Company
completed a winter drill program on the South Tally Pond property
based on the magnetic and electromagnetic geophysical surveys
completed in late 2016 which outlined new drill targets in three
priority areas. The 2017 winter drill program was designed to test
for mineralized extensions to the Lemarchant massive sulphide
deposit immediately along the strike and up-dip of the currently
defined Lemarchant resource.
Ten drillholes and three drillhole extensions, totaling 3,070
metres were completed at the Lemarchant massive sulphide deposit.
For full results refer to Canadian Zinc News Release April 18, 2017, with a drill hole location map
and key sections provided on the Canadian Zinc website
(www.canadianzinc.com).
The drilling successfully extended the Lemarchant mineralization
up to 65 metres up-dip on two sections located 125 metres apart and
25 metres along strike to the south. The vertical depths of the
mineralized drill intercepts range from 130 -170 metres. The
mineralized zone remains open for further expansion both up-dip and
along strike.
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-staged zinc-lead-silver property, located in the
Northwest Territories.
Qualified Person: Alan
Taylor, P.Geo., Vice President of Exploration, Chief
Operating Officer and Director of the Company, who is a
Non-Independent Qualified Person as defined in National Instrument
43-101 – Standards of Disclosure for Mineral Projects
("NI 43-101"), has prepared, supervised the preparation of
or reviewed, the parts of this News Release that are of a
scientific or technical nature.
Cautionary Statement – Forward-Looking Information
This press release contains certain forward-looking
information, including, among other things, 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.
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