Canada Zinc Metals Reports on Activities at the Akie and Kechika Regional Projects - 11 Drill Holes Completed, Drilling Continues
September 14, 2011
Vancouver, British Columbia, Canada – Wednesday, September 14, 2011 – Canada Zinc Metals Corp. (TSX Venture Exchange: CZX) is pleased to provide an update on exploration activities on its 100% owned Kechika regional project; and the 100% owned Akie property, which hosts the Cardiac Creek SEDEX Zn-Pb-Ag deposit. The Akie property is located approximately 260 kilometers north-northwest of the town of Mackenzie, in northeastern British Columbia, Canada. The Kechika group of regional properties extends north from the Akie property for a distance of 140 kilometers, along the prospective Gunsteel Formation stratigraphy of NE BC. The 2011 regional program focused principally on 2 southern claim groupings, the Pie and the Mt. Alcock properties.
The 2011 exploration program commenced in early June and has included diamond drilling on several key zones along strike from the Cardiac Creek deposit, and at the deposit itself. The initial drilling focused on the SE extension, utilizing the recently constructed lower access road. The SE extension drilling was a follow-up to early spring 2011 geotechnical drill holes completed along the road. They were designed for engineering purposes but managed to intercept the favorable Gunsteel Formation shales containing interlaminated sulphide bands similar to the Cardiac Creek style mineralization found some 850m to the NW. A single drill hole (A-11-86) was completed at the SE zone and core logging has indicated the presence of both distal and proximal pyrite mineralization. The distal and proximal pyrite horizons are evidenced at the Cardiac Creek zone and are generally a precursor to high grade zinc mineralization at depth.
The focus of the drilling then shifted to the NW Extension to follow-up on significant drill intersections from 2010. This included Cardiac Creek style zinc-lead-silver mineralization in hole A-10-69, and a unique sulphide zinc-nickel enriched zone intersected in drill hole A-10-72 that is also anomalous in gold, lead, copper and other elements, and appears to be similar in character to zinc-lead-PGE (platinum group element) mineralization of the Nick Deposit in the Yukon. A total of 5 holes were completed on the NW Extension. Detailed logging of these drill holes has been completed. Several highlights are noted, including drill hole A-11-88 which intersected a 14 metre thick (downhole length) proximal pyrite zone and 2.6 metre thick (downhole length) massive sulphide zone at a depth of 240.9 metres. Drill hole A-11-90 intersected a large interval of proximal pyrite mineralization from 156 to 197 metres.
Recently, drilling has also tested the SE edge of the Cardiac Creek deposit with the intent to expand the deposit both up-dip and along strike with an approximate 100 metre spacing from existing resource drill holes.
A total of 2,640.81 metres of drilling has been completed in 5 drill holes (A-11-92, A-11-93, A-11-95, A-11-96, and A-11-98). All drill holes successfully intersected the Cardiac Creek zone over variable downhole lengths ranging from 5 to 20+ metres. Drill hole A-11-99 is currently underway and is testing the down-dip extent of the deposit in this area. Detailed logging has been completed on most holes. Several highlights include drill hole A-11-93 which intersected the Cardiac Creek zone over a downhole length of 18.5 metres at a depth of 540 metres. Drill hole A-11-95 intersected the Cardiac Creek zone over a downhole length of 20.45 metres at depth of 540.65 metres.
To date, 11 drill holes have been completed during the past three months of the program, totaling 4,854.59 metres. Drill production and recovery has exceeded expectations and management is very pleased with the drill type and technique now being employed at Akie. Assay results are pending for all drill holes.
The final drill hole of the program will target massive barite mineralization at the GPS zone, which may represent a buried SEDEX horizon that is distal to the Cardiac Creek trend. The GPS bedded barite occurrence is located on the westernmost edge of the Akie property. It is situated along strike from, and is hosted in the same panel of, interpreted Gunsteel shales identified at the West Pie property. The showing was inspected early in the program and a series of soil samples were collected to close off an existing soil anomaly.
A single drill hole is proposed that will test the down-dip extent of the bedded barite. The proposed drill hole is expected to be approximately 250 metres in length. The surface outcropping of the Cirque deposit, owned by Teck Resources (TSX: TCK.B), is identified as the “Baritic facies” and is known to contain massive barite and minor sulphides. The GPS showing could represent a similar barite horizon proximal to another center of exhalative sulphide mineralization. Drilling of this hole will commence shortly.
Although further drilling has not been conducted on the North Lead Anomaly this summer, it remains a high priority target. Analysis of previous drill data in this area is warranted to better refine exploration targets for future drilling.
The Pie and the Mt. Alcock properties have been the primary targets of the 2011 regional exploration program conducted on the Kechika group of properties. Work has focused on the prospective black shales of West Pie; the nickel-in-soil anomalies of East Pie; and evaluation of the historical work conducted on the Mt Alcock property.
Mapping of the West Pie property has been completed. This work has defined a significant panel of interpreted prospective Gunsteel Formation shale encompassing 8 kilometers of strike length. A comprehensive 14.9 line kilometer soil sampling program has been completed across this panel, with a total of 317 samples taken at 50 metre spaced intervals, along 400 metre spaced lines. In addition, nodular barite occurrences have been discovered within this panel, indicating the presence of exhalative activity in the area. Channel sampling, using a portable rock saw, has been completed on these occurrences. It is important to note that the interpreted Gunsteel shales present at the West Pie property, which also host the GPS bedded barite showing, are situated directly along strike from Teck’s Cirque deposit. Further prospecting, mapping and select soil sampling have been carried out in the vicinity of the nickel-in-soil anomalies of East Pie in an attempt to discover the source of these anomalies.
Work on the Mt. Alcock property is expected to be completed shortly and includes a soil program aimed at expanding upon the historical soil data, a property-scale silt sampling program designed to provide geochemical information from key drainages and water ways, and an evaluation of the historical drill core for due diligence purposes. An effort has been taken to preserve the remaining historical drill core from further deterioration. The 100% owned Mt. Alcock property has yielded a historic drill intercept of 8.8 metres grading 9.3% zinc+lead
Analytical results from the regional exploration program are pending.
Underground Development: Akie
The Company recently concluded the surface construction works tender process and is pleased to announce the surface construction tender has been awarded to Falcon Contracting Ltd. of Prince George, BC.
The surface works contract includes tree clearing, grubbing and striping of the planned underground portal site, preparation of the portal pad, construction of the waste rock dump site, and upgrade of the existing lower access road. This surface work is necessary in order to prepare for construction of the underground portal and exploration decline. This work is expected to be completed by November 2011.
The Company is continuing to examine underground tender bids and costs associated with underground development for exploration drilling.
Separately, Canada Zinc Metals wishes to welcome to Vancouver a delegation from Tongling Nonferrous Metals Group scheduled to arrive on Thursday of this week. Meetings have been planned with senior management of the Company.
About the Akie Property
The Akie zinc-lead property is situated within the southernmost part (Kechika Trough) of the regionally extensive Paleozoic Selwyn Basin, 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 Inmet Mining Corporation during the period 1994 to 1996 and by Canada Zinc Metals since 2005 has identified a significant body of baritic-zinc-lead SEDEX mineralization (Cardiac Creek deposit). The deposit is hosted by siliceous, carbonaceous, fine grained clastic rocks of the Middle to Late Devonian ‘Gunsteel’ formation. The Company has outlined a NI 43-101 compliant inferred resource of 23.6 million tonnes grading 7.6% zinc, 1.5% lead and 13.0 g/t silver (at a 5% zinc cut off grade).
Two similar deposits, Cirque and Cirque South Cirque, located some 20 km northwest of Akie and owned under a joint venture by Teck Resources and Korea Zinc, are also hosted by Gunsteel rocks and have a combined geologic inventory in excess of 50 million tonnes (not 43-101 compliant) grading approximately 10% combined zinc + lead.
In addition to the Akie property, Canada Zinc Metals Corp. controls a large contiguous group of claims which comprise the Kechika Regional project. These claims are underlain by geology identical to that on the Akie property (Cardiac Creek deposit) and Cirque. This project includes the 100% owned Mt. Alcock property, which has yielded a historic drill intercept of 8.8 metres grading 9.3% zinc+lead, numerous zinc-lead-barite occurrences, and several regional base metal anomalies.
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.
ON BEHALF OF THE BOARD OF DIRECTORS
CANADA ZINC METALS CORP.
PEEYUSH VARSHNEY, LL.B
CEO & CHAIRMAN