Canada Zinc Metals Announces Completion of Initial Earn-in On the Pie Option Properties
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FOR IMMEDIATE RELEASE
Contact: Investor Relations Thursday January 11, 2018
Phone (604) 684-2181 (No.2018-01-01)
Canada Zinc Metals Announces Completion of Initial Earn-in
On the Pie Option Properties
Vancouver, British Columbia, Canada – Thursday, Jan uary 11, 2018 – Canada Zinc Metals Corp.
(TSX Venture Exchange: CZX) is pleased to announce that Teck Resources Limited (“Teck” TSX:
TECK.B) and Korea Zinc Co. Ltd. (“Korea Zinc”) (col lectively, the “Optionees”) have delivered to the
Company an exercise notice regarding the Optionees’ First Option on the Pie, Yuen and Cirque East
properties.
Background
The Pie, Yuen and Cirque East properties (known as the “Pie Option properties” or the “Property”) are the
subject of an option agreement concluded on Septemb er 9, 2013 with Teck and partner, Korea Zinc. The
Option Agreement would see Teck and Korea Zinc spen d up to $8.5 million to acquire up to 70% interest
in the Pie Option properties in two phases.
The Agreement outlines two options that are subject to certain expenditure requirements, as outlined below:
• Under the First Option, Teck/Korea Zinc can earn a n undivided 51% interest in and to the Property
by incurring a cumulative aggregate of $3,500,000 i n exploration expenditures on the Property on
or before December 31, 2017.
• Under the Second Option, Teck/Korea Zinc may elect to acquire an additional 19% interest in the
Property for a total of 70%, by incurring an additional $5,000,000 in exploration expenditures (for a
total aggregate of $8,500,000 in exploration expenditures) on the Property on or before December
31, 2019.
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First Exercise Notice
Teck has served the First Exercise Notice confirmin g that the Optionees have incurred cumulative
aggregate expenditures of $3,500,000 by December 31 , 2017 (or made a cash payment to the Company
for any shortfall), thereby exercising the First Op tion and earning a 51% interest in the Company’s Pi e,
Cirque East and Yuen properties; three of the 10 re gional properties that make up Canada Zinc’s Kechika
Regional Project.
Exploration work thus far includes airborne geophysics, soil sampling, mapping, rock sampling and ground
geophysics that have continued to advance and refin e ranked drill targets across the three option
properties. A single drill hole was completed late in the 2016 field season on the Pie property that
encountered favorable Gunsteel shale stratigraphy approximately one kilometre west of previous historical
drilling on the Pie Main prospect. The exploration program was based out of Teck’s Cirque exploration
camp located approximately 20 kilometres northwest of the Company’s flagship Akie property.
About the Optioned Properties
The Yuen, Cirque East and Pie properties surround T eck/Korea Zinc’s jointly owned Cirque deposit to the
north and east, and provide extensive coverage of the highly prospective Gunsteel Formation shale that is
the known host rocks for SEDEX Zn-Pb-Ag deposits in the Kechika Trough including the Company’s
Cardiac Creek deposit, located 22 km south on the Akie property.
The Akie Zn-Pb-Ag Project
The 100% owned Akie property is situated within the Kechika Trough, the southernmost area of the
regionally extensive Paleozoic Selwyn Basin and one of the most prolific sedimentary basins in the wor ld
for the occurrence of SEDEX zinc-lead-silver and stratiform barite deposits.
Drilling on the Akie property by Canada Zinc Metals since 2005 has identified a significant body of ba ritic-
zinc-lead SEDEX mineralization known as the 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 mine ral resource at Cardiac Creek, including an
indicated resource of 19.6 million tonnes grading 8 .2% zinc, 1.6% lead and 13.6 g/t silver (at a 5%
zinc cut-off grade) and an inferred resource of 8.1 million tonnes grading 6.8% zinc, 1.1% lead and
11.2 g/t silver (at a 5% zinc cut-off grade).
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In addition to the Akie Project, the Company owns ten, large, contiguous property blocks that comprise the
Kechika Regional project. The Kechika Regional Project includes the Pie, Yuen, Cirque East and Mt. Alcock
properties, extending northwest from the Akie property for approximately 140 kilometres along strike of the
highly prospective Gunsteel Formation shale; the main host rock for known SEDEX zinc-lead-silver deposits
in the Kechika Trough of northeastern British Colum bia. These projects are located approximately 260
kilometres north northwest of the town of Mackenzie, British Columbia, Canada.
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 d isapproved 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