2012

Kechika Regional Project Exploration Update - Prospective Gunsteel Shales Present and Situated Directly Along Strike Teck Resources/Korea Zinc's Cirque Deposit - Drill Targets Firmed Up on Pie and Mt. Alcock Properties


January 11, 2012

Vancouver, British Columbia, Canada – Wednesday, January 11, 2012 – Canada Zinc Metals Corp. (TSX Venture Exchange: CZX) is pleased to provide an update on the 2011 Kechika Regional exploration program.  The Kechika group of regional properties extends northwest from the Company’s flagship Akie property for 140 kilometers, centered along the prospective stratigraphy of the Gunsteel Formation of Northeastern B.C.  The Akie property, host to the Cardiac Creek SEDEX Zn-Pb-Ag deposit, is located approximately 260 kilometers north-northwest of the town of Mackenzie, in northeastern British Columbia, Canada. 

2011 Regional Exploration

Extensive regional exploration was conducted during the 2011 field season on several properties within the Kechika project area, including Mt. Alcock and Pie. These claims are underlain by prospective Gunsteel shale similar to the host rocks of the Cardiac Creek deposit on the Akie property and the Cirque deposits (Teck Resources/Korea Zinc joint venture). Regional exploration included GIS compilation and analysis of historical exploration data, targeted geochemical surveys, geological mapping and prospecting.

The Pie and the Mt. Alcock properties were primary targets of the 2011 regional exploration program conducted on the Kechika group of properties. Work focused on the prospective black shales of West Pie; the nickel-in-rock 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 Resources/Korea Zinc’s Cirque deposit. Additional prospecting, mapping and select soil sampling have been carried out in the vicinity of the nickel-in-rock anomalies of East Pie in an attempt to discover the source of these anomalies.

Work on the Mt. Alcock property included a property-scale silt sampling program designed to provide geochemical information from key drainages, infill and extension soil sampling with a total of 259 samples taken at 50 metre spaced intervals along 400 metre spaced lines, 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 and 1.2 oz per ton silver.

A baseline hydrogeochemistry sampling survey was completed at selected sites on the Pie and Akie claims to assess the viability of this method for evaluating prospectivity across the larger Kechika project area. Field testing gave immediate results, later verified by laboratory analysis of the water samples, suggesting the method is feasible for identifying drainages with barite-in-shales, associated with SEDEX-style zinc-lead mineralization. The highest field concentration of barium sulphate is downstream of the GPS bedded barite showing, located near the Pie-Akie claim boundary. Sites with the three next highest barium sulphate concentrations are all located on the Pie claims. An unexplained, polymetallic signature at the Silver Creek site 8 kilometers upstream of the Cardiac Creek deposit suggests further exploration potential of the test method.

Highlights of the regional work include:

  1. Geological mapping and sampling has defined new prospective panels of Gunsteel shale and demonstrated evidence of exhalative mineralization (barite nodules, laminated pyrite).
  2. Interpreted Gunsteel shales present at the West Pie property, which also host the GPS bedded barite showing, are situated directly along strike from Teck Resources/Korea Zinc’s joint-ventured Cirque deposit.
  3. Soil and silt geochemistry surveys were completed and aimed at expanding upon the historical data from earlier work programs.
  4. Completed orientation survey using hydrogeochemistry to identify pathfinder barium sulphate to vector into areas with SEDEX style anomalies; shows excellent potential for future surveys.
  5. Regional work has firmed up drill targets on the Pie and Mt. Alcock properties.  The Mt. Alcock property has yielded a historic drill intercept of 8.8 metres grading 9.3% zinc+lead from 1989 drilling, and there are numerous documented zinc-lead-barite occurrences on the property.

“We are very pleased with the progress made during the 2011 Regional exploration program,“ commented Mr. Ken MacDonald, Vice President of Exploration for Canada Zinc Metals Corp.  “Based on the information gathered, we look forward to initiating a drill program on the Pie and Mt. Alcock properties in 2012.”

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”
                                                           
PEEYUSH VARSHNEY, LL.B
CEO & CHAIRMAN

©2008 Canada Zinc Metals Corp.
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