Canada Zinc Metals Announces Expanded Mineral Resource Estimate for the Cardiac Creek Deposit
FOR IMMEDIATE RELEASE
Contact: Investor Relations Monday, January 29, 2018
Phone (604) 684-2181 (No.2018-01-02)
Canada Zinc Metals Announces Expanded Mineral Resource Estimate
for the Cardiac Creek Deposit
Vancouver, British Columbia, Canada –Monday, January 29, 2017 – Canada Zinc Metals Corp. (TSX
Venture Exchange: CZX) is pleased to announce that the Company has receiv ed an updated mineral
resource estimate for the Cardiac Creek Zn-Pb-Ag deposit on its 100% owned Akie Project.
The new mineral resource estimate incorporated the results of 8 new drill intercepts from the successf ul
2017 drill program which totaled 4,700 metres. All drill results were previously announced (see website for
details).
Highlights of the updated resource include:
• Indicated resources have increased by 3 million tonnes to 22.7 million tonnes ; a 15%
increase when compared to the previous 2016 indicated resource estimate, with increases in the
average grades for zinc, lead and silver (at 5% Zn base case cut-off grade)
• Current resource distribution consists of 75% in the Indicated and 25% in the Inferred categories.
The previous, 2016 estimate had 71% in Indicated an d 29% in Inferred categories (at 5% Zn cut-
off grade)
• Drilling completed in 2017 extended the limit of the mineral resource up- and down-dip and along
strike to the north.
• Drilling has now delineated a continuous zone of 100 metres spaced drill holes over an area
measuring roughly 1,200 metres along strike by abou t 500 metres along the dip plane of the
deposit, resulting in the estimation of the majority of the resource in the Indicated category.
• The 2017 drill holes intersected similar or slight ly thicker intervals of mineralization with similar or
slightly higher grades compared to the previous dri lling results, demonstrating the continuous
nature of the thickness and grade of the mineralization
Updated Mineral Resource Estimate: Cardiac Creek Deposit
TABLE 1: ESTIMATE OF MINERAL RESOURCES (5% ZINC CUT -OFF )
Contained metal:
Category Tonnes
(million) Zn (%) Pb (%) Ag (g/t) Zn (Mlbs) Pb (Mlbs) Ag (Moz)
Indicated 22.7 8.32 1.61 14.1 4,162 804 10.3
Inferred 7.5 7.04 1.24 12.0 1,169 205 2.9
Note: Mineral resources are not mineral reserves because the economic viability has not been demonstrated.
Table 2 shows the sensitivity of mineral resources at a variety of zinc cut-off grades.
TABLE 2: SENSITIVITY OF MINERAL RESOURCES
Contained metal:
Cut-off
Grade
(Zn %)
Tonnes
(million) Zn (%) Pb (%) Ag (g/t) Zn (Mlbs) Pb (Mlbs) Ag (Moz)
Indicated Resources
2 41.5 6.08 1.16 10.7 5,563 1,062 14.3
3 34.1 6.86 1.32 11.9 5,161 994 13.0
4 28.1 7.58 1.46 13.0 4,700 908 11.7
5 (base
case) 22.7 8.32 1.61 14.1 4,162 804 10.3
6 17.9 9.08 1.75 15.2 3,584 691 8.7
7 13.5 9.93 1.91 16.4 2,949 567 7.1
Inferred Resources
2 30.0 4.11 0.69 7.5 2,715 455 7.3
3 18.5 5.15 0.89 9.1 2,098 361 5.4
4 11.8 6.11 1.07 10.5 1,591 278 4.0
5 (base
case) 7.5 7.04 1.24 12.0 1,169 205 2.9
6 4.8 7.97 1.40 13.6 835 147 2.1
7 2.8 8.99 1.59 15.4 561 99 1.4
Note: Mineral resources are not mineral reserves because the economic viability has not been demonstrated.
Comparison to Previous Resource
The current mineral resource estimate (November 201 7) is compared to the previous mineral resource
estimate (effective date May 16, 2016, presented in a technical report dated June 28, 2016).
TABLE 3: COMPARISON OF NOVEMBER 2017 AND MAY 2016 MINERAL RESOURCES (5% ZN CUT -OFF )
Class
November 2017 May 2016
Tonnes
(million) Zn (%) Pb (%) Ag (g/t) Tonnes
(million) Zn (%) Pb (%) Ag (g/t)
Indicated 22.7 8.32 1.61 14.1 19.6 8.17 1.58 13.6
Inferred 7.5 7.04 1.24 12.0 8.0 6.81 1.16 11.2
The drill holes completed in 2017 encountered simil ar or slightly thicker intervals of mineralization, with
similar or slightly higher zinc, lead, and silver grades compared to the previous drill results. The 2017 drilling
increased the area that is delineated with 100 metres spaced drill holes, expanding the extent of resources
in the Indicated category in the northwest area of the deposit. Indicated resources have increased by about
3 million tonnes (+15%) compared to the previous es timate with increases in the average grades of zinc ,
lead and silver. After previously reported Inferred class resources were upgraded to the Indicated category,
the 2017 drilling also added about 2.5M tonnes of n ew resources in the Inferred category, primarily in the
northwestern part of the deposit.
Peeyush Varshney, President and CEO of the Company, commented: “We’re delighted by the impact the
successful results from the 2017 drill program has had on the mineral resource estimate. This work
continues to demonstrate that continuity of the res ource in the central, high-grade area of the deposi t and
expansion of the Indicated resource. The delineation of a majority of the resource in the Indicated category
greatly increases the confidence in the deposit model. The deposit remains largely open at depth and along
strike and we are confident that the mineral resour ce will continue to expand with additional new dril ling –
whether from surface or underground. Future drillin g programs will test these areas for even further
expansion.”
Mr. Varshney continued, “The updated resource further sets the Cardiac Creek deposit apart as one of the
world’s premier undeveloped zinc deposits. Based on size, grade and jurisdiction, the deposit ranks
amongst the top tier zinc deposits globally and is attracting the attention of several large base metal mining
companies.”
In the coming weeks, the Company anticipates receiving results from its ongoing metallurgical test program
– which represents an important milestone for the development of the Cardiac Creek deposit. The program
commenced in Q4 2017 on drill core samples from the successful 2017 drill program. The objective of th e
program is to assess the metallurgical performance of samples from the deposit using heavy media pre-
concentration followed by conventional flotation processes to recover zinc and lead into concentrates. The
program is intended to generate sufficient metallur gical data to support a Preliminary Economic
Assessment study which is expected to commence in Q 1 2018. The program initially focused on testing a
global composite that represents the average resour ce. A smaller sub-set of samples are now being
evaluated using a variability assessment. The metal lurgical work is being supervised by Tom Shouldice,
P.Eng., the Principal Metallurgist of Base Metallurgical Laboratories Ltd. of Kamloops, BC. Assistance and
program design has been provided by Kelly McLeod, P .Eng.of JDS Energy and Mining Inc. of Vancouver,
BC.
Resource Estimation
The updated mineral resource estimate was prepared by Robert Sim, P.Geo with the assistance of Bruce
Davis, FAusIMM. Mr. Sim is an independent Qualified Person within the meaning of NI 43-101 for the
purposes of mineral resource estimates and was resp onsible for the 2008 maiden resource and the 2012
and the 2016 updated mineral resource estimates.
The estimate of mineral resources incorporates all drilling conducted by the Company on the Cardiac Creek
deposit since 2005 plus 29 holes drilled by Inmet Mining Corporation between 1994 and 1996. There are a
total of 151 drill holes on the Property with a tot al core length of 64,352 metres. Of these, 116 dril l holes,
totaling 51,978 metres, are within close enough proximity of the block model to contribute to the estimation
of the mineral resources for the Cardiac Creek depo sit. The remaining 35 drill holes test the zone ove r a
total strike length of almost 7 kilometres, or thes e holes test other exploration targets on the Property. The
eight holes completed in 2017 have provided additio nal, more closely-spaced drilling data to define th e
central and northwestern parts of the deposit.
The spacing of drill hole pierce points into the mi neralized horizon is variable, ranging from 40 metr es to
over 500 metres, with an average of approximately 100 metres in the central core of the resource area.
The Cardiac Creek mineralized horizon occurs as a p lanar, sheet-like zone of semi-massive to massive
sulphides comprised of varying amounts of pyrite, sphalerite and galena (+/- barite) hosted in a black shale
sequence which has been traced over a strike length of 7 kilometres and to a depth of 1,300 metres below
surface. The mineralized zone ranges in thickness f rom less than 1 metre (where the deposit outcrops a t
surface) to as much as 40 metres, with an average true thickness of about 20 metres in the area of potential
economic interest.
Methodology
Estimations are generated from 3D block models base d on geostatistical applications using commercial
mine planning software (MineSight® v12.0). The proj ect limits are based in the UTM coordinate system
using a nominal block size measuring 5 m x 10 m x 5 m; the longer blocks are parallel to the strike of the
deposit at an Azimuth of 315°. The primary orientat ion of the drilling is at Az50°, and was designed t o
intersect the steeply dipping deposit (-70° SW) fro m the hanging wall side. There are several deep hol es
drilled from the footwall side of the deposit.
The resource estimate was generated using drill hol e sample assay results and an interpretation of the
geologic model which relates to the spatial distribution of zinc, lead, and silver. Interpolation characteristics
were defined based on the geology, drill hole spaci ng, and geostatistical analysis of the data. The ef fects
of potentially anomalous high-grade sample data was controlled by limiting the maximum distance of
influence during block grade interpolation. Grade e stimates in the block model were validated using a
combination of visual and statistical methods to en sure that the models are an appropriate representat ion
of the underlying sample data.
Resources in the Indicated category are delineated from multiple drill holes located on a nominal 100-metre
grid pattern and must exhibit a high degree of continuity of mineralization between drill holes. Resources in
the Inferred category include blocks in mineralized areas showing reasonable continuity and within a
maximum distance of 150 metres from a drill hole. The mineral resources were classified according to their
proximity to the sample data locations and are repo rted, as required by NI 43-101, according to the CI M
Definition Standards for Mineral Resources and Mine ral Reserves (May 2014). The updated mineral
resource includes estimates for mineral resources only. No mineral reserves were prepared or reported.
The “base case” cut-off grade of 5% Zn is considere d reasonable based on assumptions derived from
operations with similar characteristics, scale and location. The distribution of Indicated and Inferred mineral
resources, above a cut-off grade of 5% Zn, occurs a s a continuous zone, which is favourable with respe ct
to selectivity and other factors when considering possible mining options. The orientation, dimensions and
location of the deposit indicates that it is potent ially amenable to underground mining methods, and, as a
result, the stated resource is considered to exhibit reasonable prospects for eventual economic extraction.
It is important to note that mineral resources are not mineral reserves because the actual economic viability
has not been demonstrated. There are no known facto rs related to environmental, permitting, legal, tit le,
taxation, socio-economic, marketing or political is sues which could materially affect the mineral reso urce.
It is expected that a majority of resources estimat ed in the Inferred category could be upgraded to th e
Indicated or Measured category with continued exploration.
The sample database used to generate the mineral resource estimate has been monitored using an industry
standard Quality Assurance / Quality Control (QAQC) program including the blind insertion of standard
reference material, blanks and duplicate samples ru n at umpire labs. The database also contains an
extensive suite of density measurements conducted a t a certified laboratory using the weight-in-air ve rsus
weight-in-water method.
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.
With additional drilling completed in 2017, the Com pany has updated the estimate of mineral
resources at Cardiac Creek, as follows:
5% zinc cut-off grade Contained metal:
Category Tonnes
(million) Zn (%) Pb (%) Ag (g/t) Zn (B lbs) Pb (B lbs) Ag (M oz)
Indicated 22.7 8.32 1.61 14.1 4.162 0.804 10.3
Inferred 7.5 7.04 1.24 12.0 1.169 0.205 2.9
In addition to the Akie Project, the Company owns 100% of seven of ten large, contiguous property blocks
that comprise the Kechika Regional Project includin g the advanced Mt. Alcock prospect. The Kechika
Regional Project also includes the Pie, Yuen and Ci rque East properties within which the Company
maintains a significant 49% interest with partners Teck Resources Limited (TSX: TECK.B) and Korea Zinc
Co. Ltd. These properties extend northwest from the Akie property for approximately 140 kilometres
covering the highly prospective Gunsteel Formation shale; the main host rock for known SEDEX zinc-lead-
silver deposits in the Kechika Trough of northeaste rn British Columbia. These projects are located
approximately 260 kilometres north northwest of the town of Mackenzie, British Columbia, Canada.
Robert Sim P.Geo., is an independent Qualified Pers on responsible for the information related to the
estimate of mineral resources contained in this release.
Ken MacDonald P.Geo., Vice President of Exploration for the Company, is the designated Qualified Person
as defined by National Instrument 43-101 and is res ponsible 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