Vancouver, British Columbia, Canada – Monday, June 18, 2012 – Canada Zinc Metals Corp. (TSX Venture Exchange: CZX) is pleased to announce the Company is in receipt of a NI 43-101 compliant technical report entitled “NI 43-101 Technical Report on the Mt Alcock Property” dated May 31, 2012 and authored by Tanya Strate, P.Geol., an independent qualified person for the purposes of NI 43-101. Please refer to www.sedar.com to review the report.
The Technical Report highlights the history of previous exploration on the property since the 1970’s and identifies it as being prospective to host SEDEX Zn-Pb-Ag mineralization. The report documents the results of assessment work completed on the property in 2011, and makes recommendations for further work, including drill testing of the Main barite zone previously drill tested in 1989 and 1990. The property hosts several large soil geochemical anomalies that have never been drill tested and other zinc-lead-silver mineralization targets.
The Mt Alcock property is located in northern British Columbia and represents a key holding within the Company’s 100% owned Kechika Regional Project, a 140 kilometre long collection of mineral claims that covers a significant portion of the Kechika Trough; a southerly extension to the Selwyn Basin. The claims overlie the trend of the prospective Gunsteel Formation; the primary host to known SEDEX deposits in the belt, including Canada Zinc Metals’ 43-101 compliant Cardiac Creek deposit, and Teck Resources/Korea Zinc’s Cirque deposit. The Mt Alcock property comprises 21 contiguous mineral claims which cover a total of 92 square kilometres (9,172 hectares). The claims are contiguous with the Company’s Yuen claim block to the south and their Kwad claim block to the north.
The property is located about 40 kilometers northwest of the Company’s flagship Akie property that is host to the Cardiac Creek deposit. The Cardiac Creek deposit has a 43-101 compliant resource with an indicated resource (at a 5% zinc cut-off grade) of 12.7 million tonnes at 8.38 % Zn, 1.68 % Pb and 13.7 g/t (grams per tonne) Ag, and an inferred resource of 16.3 million tonnes at 7.38 % Zn, 1.34 % Pb and 11.6 g/t Ag. The Mt Alcock property is similarly prospective for base metals; SEDEX style mineralization found on the property is hosted by the same carbonaceous Gunsteel Formation shale of the Devonian to Mississippian Earn Group, underlain by the Ordovician to Devonian Road River Group siltstone. Barite within the Gunsteel Formation is generally peripheral to base metal massive sulphides.
Historical exploration work completed on the Mt Alcock property includes diamond drilling on the Main barite showing in addition to geological mapping, geophysics, and surface geochemistry work on the Main, Nod and Seep grids. Two phases of diamond drilling were completed in 1989 and 1990, with a total of 17 diamond drill holes drilled for 2,264 metres to test a prominent white barite zone. The barite zone has a surface extent up to 500 metres long by an average of 90 metres wide. Anomalous zinc values in soils range from 500 to 6888 ppm (parts per million), and are coincident with anomalous lead values that range from 100 to 16,500 ppm. Grab samples of stratiform barite hosted zinc‐lead sulphides in outcrop over a 300 metre strike length returned up to 14.8 % combined zinc+lead and 0.6 ounce per ton silver. The best drill intercept recorded (from limited drilling) was 8.8 metres grading 9.3 % combined zinc+lead, and 1.2 ounces per ton silver, in drill hole 89‐3. Drill hole 89‐9 returned the widest intercept, with 10.5 metres grading 6.8 % combined zinc+lead and 0.7 ounces per ton silver.
Exploration work during 2011 focused on the Nod and Seep areas, and considerable effort was dedicated to the compilation and digitization of historical drilling and all available surface geochemistry and mapping data, and to the preservation of the remaining reference core material. Field work comprised prospecting, mapping, stream sediment sampling and completion of a major soil sampling program over prospective black shale on the Nod and Seep grids – part of the eastern Gunsteel Formation shale panel covering the area.
Mapping along the Nod and Seep grids identified prospective sub-units of Gunsteel Formation shale with coincident anomalous silt, soil and rock geochemistry. Historically this area had seen little exploration activity and in particular the region located between the known showings. Extension and infill of two historical soil grids resulted in joining the Nod and Seep grids; delineating two parallel semi-continuous zinc-silver +/-lead soil anomalies, along the entire strike length of the mapped panel. Stream sediment sampling identified areas for follow up including a new target southwest of the Main barite showing, in addition to the area downstream of the Seep grid. Iron oxide ‘rust’ occurrences on the Seep grid indicate the presence of SEDEX activity, making this a high priority target.
Highlights and Recommendations of the Report:
- Gunsteel Formation shale present on the Mt Alcock property is situated directly along strike from Teck Resources/Korea Zinc’s joint-ventured Cirque deposit
- Soil and silt geochemistry surveys outlined two parallel zinc-silver +/-lead anomalies, continuous for up to 3 kilometres of strike length along the Nod-Seep panel, and open along strike
- Silt geochemistry surveys outlined widespread zinc-silver +/- lead anomalism southeast of the current Seep grid extents, and a new target southwest of the Main barite showing
- Drill targets have been defined at the Nod and Seep showings
- Drill targets have been defined at the Main barite showing, testing along strike and down dip of high grade zinc-lead mineralization encountered in 1989
- An airborne VTEM geophysical survey is recommended to be completed over the entire property
- A 2nd phase of drilling is proposed contingent on the results of Phase I, and on the results of the VTEM survey
- An orientation hydrogeochemistry survey completed on several of the nearby Kechika properties in 2011, used pathfinder barium sulphate to vector into areas with SEDEX style anomalies. This field test method shows strong potential for future surveys
Drilling in Phase One would focus on:
- Main barite showing: test down dip and along strike of historical intercepts of high grade, SEDEX style mineralization (3D modeling at Cardiac Creek has demonstrated the significance of down-dip testing for increasing grades)
- Nod showing: test an area of anomalous soil, silt and rock geochemistry down dip of nodular barite
- Seep showing: test a prospective rusty sub-unit of the Gunsteel Formation shale host with coincident anomalous stream, soil and rock geochemistry
A major airborne VTEM geophysical survey is recommended over the entire Mt Alcock property. The signature of sulphide mineralization targets will be developed by using the VTEM data obtained from surveying the nearby Cardiac Creek deposit. The proposed VTEM survey is an airborne geophysical survey method successfully used on other SEDEX properties to detect the presence of the conductive sulphide mineralization within similarly conductive host units.
A second phase of 5,000 metres drilling is recommended to test targets generated by the VTEM survey, and to follow up targets at the Main barite, Nod and Seep showings, contingent on the results of the first phase.
About the Mt Alcock Property:
The Mt Alcock zinc-lead-silver property is situated within the southernmost area (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.
In 1977, Cyprus Anvil Mining identified mineralization associated with massive to laminated barite, and hosted by siliceous, carbonaceous, fine grained clastic rocks of the Middle to Late Devonian Gunsteel Formation on the Mt Alcock property. Drilling by Triumph Resources in 1989 and 1990 focused on testing under the Main barite showing. Drilling intersected SEDEX style sulphide mineralization; including two intercepts similar in style, width and tenor to mineralization at the Company’s Cardiac Creek deposit.
In 1993, Teck Corporation (then) identified nodular barite at the Nod showing; located on the eastern side of a large panel of Gunsteel Formation shale; with mapped strike extents of over 6 kilometres, and widths in the order of 2 to 4 kilometres. A gravity anomaly immediately adjacent to the showing, surveyed by Teck, remains untested by drilling. Soil, silt and rock sampling, over part of the panel, delineated two parallel zones of semi-continuous anomalous geochemistry, with dimensions 3 kilometres in strike length by up to 800 metres wide; open along strike. The southeastern portion of the anomaly encompasses an iron seep on the Seep grid.
In addition to the Mt Alcock property, Canada Zinc Metals Corp. controls a large contiguous group of claims which comprise the Kechika Regional project. These claims are all underlain by geology identical to that on the Akie property (Cardiac Creek deposit) and Cirque.
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