Update on Activities at Akie and the Kechika Trough
FOR IMMEDIATE RELEASE
Contact: Investor Relations Friday, September 29, 2023
Phone (604) 684-2181 (No.2023-09-05)
Update on Activities at Akie and the Kechika Trough
Vancouver, British Columbia, Canada – Friday, September 29, 2023 – ZincX Resources Corp.
(“ZincX Resources” or the “Company”, TSX Venture Exchange: ZNX) is pleased to provide a general
update on recent company activities.
The Company recently concluded general maintenance of certain key infrastructure including grading the
Akie Forest Service Road (FSR), brushing out around the exploration camp, annual repairs to the weather
station, and annual stream and hydrological well water sampling to maintain environmental permits in
compliance.
The Akie camp was used during the latter part of the summer to host Kwadacha Natural Resources Ltd.
Partnership (KNRLP), the economic development and natural resources arm of the Kwadacha Nation.
KNRLP was engaged by Teck Resources Limited (TSX: TECK.B) to complete road repairs on the nearby
Paul FSR which is the main access to Teck’s Cirque project, located about 20 kilometers northwest of Akie.
The Company was also pleased to meet the Teck geological crew on site and show them the Akie rock and
core library and select drill core intervals from the Cardiac Creek deposit, as a means to introduce the
regional stratigraphy and detailed facies development of the Cardiac Creek internal stratigraphy.
President and CEO Peeyush Varshney stated:
“We are pleased to continue to provide support to commercial and resource extraction sectors working in
the region. Playing host to companies such as KNRLP in the Akie River area further reinforces our long-
held belief that the region and especially the local communities will greatly benefit from year-round access
and future economic opportunities. And we’re delighted to see Teck active again at their nearby Cirque Zn-
Pb-Ag project. Without a doubt there is potential for future mine development in the Kechika Trough region
which hosts at least two world-class SEDEX Zn-Pb-Ag projects – the Cardiac Creek/Akie and Cirque
deposits.”
ZincX Resources Corp. (TSX V: ZNX, US: ZNCXF, FRA: M9R) is a Canadian exploration and
development company creating value in the critical metals space - with a focus on zinc. Zinc is a
versatile and essential material for the energy transition to a lower-carbon economy. It is already one
of the most used metals in the world behind iron, aluminum and copper but also has applications in energy
storage. It also plays a vital role in enabling other clean energy technologies like solar and wind.
ZincX Resources is well-positioned to take advantage of th e worldwide looming shortfall in zinc
production with the development of its Cardiac Creek (Akie property) deposit - which can help Canada
meet its need for the critical mineral zinc and the global push towards decarbonization to combat
climate change.
Separately, the Company has granted a total of 2.55 million stock options to directors and officers of the
Company, exercisable for a period of 10 years, at a price of 10 cents per share.
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 world
for the occurrence of SEDEX zinc-lead-silver and stratiform barite deposits.
Drilling on the Akie property by ZincX Resources since 2005 has identified a significant body of baritic-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 updated the estimate of mineral resources at Cardiac Creek in 2018 1, 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
The Company announced robust positive results from the 2018 Preliminary Economic Assessment (PEA)1.
The PEA envisages a conventional underground mine and concentrator operation with an average
production rate of 4,000 tonnes per day. The mine will have an 18-year life with potential to extend the life-
of-mine (LOM) through resource expansion at depth. Key parameters for the PEA are as follows:
Parameter Base Case1
Tonnes Mined 25.8 Mt
Mined Head Grades 7.6% Zn; 1.5% Pb; 13.08 g/t Ag
Tonnes Milled 19.7 Mt
Milled Head Grades (after DMS2 upgrade) 10.0% Zn; 1.9% Pb; 17.17 g/t Ag
Total Payable Metal (LOM) $3,960M3
Initial CAPEX $302.3M including $45.7M contingency
LOM Total CAPEX $617.9M including $58.5M contingency
All-in Total OPEX $102.4 per tonne milled
Pre-Tax NPV7% $649M
Pre-Tax IRR 35%
Pre-Tax Payback 2.6 years
After-Tax NPV7% $401M
After-Tax IRR 27%
After-Tax Payback 3.2 years
1. For details and QP statements, see technical report entitled “NI 43-101 Technical Report Akie Project British Columbia, Canada”
prepared by JDS Energy & Mining Inc. and filed on https://www.sedarplus.ca/ on August 2, 2028, and News Release dated August 2,
2018.
The base case used metal prices are calculated from the 3-year trailing average coupled with two year forward projection of the
average price; and are: US$1.21/lb for zinc, US$1.00/lb for lead and US$16.95 for silver. A CDN$/US$ exchange rate of 0.77 was
used. The NPV discount rate is 7%. 2. DMS = dense media separation. 3. All dollar amounts expressed in Canadian dollars.
The PEA is considered preliminary in nature and includes mineral resources, including inferred mineral resources that are considered
too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral
reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that
may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral
reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized.
Kechika Regional Project
In addition to the Akie Project, the Company owns 100% of eight of eleven large, contiguous property blocks
that comprise the Kechika Regional Project including the advanced Mt. Alcock prospect. The Kechika
Regional Project also includes the Pie, Yuen and Cirque East properties which the Company maintains a
significant 49% interest with partners Teck Resources Limited (TSX: TECK.B) and Korea Zinc Co. Ltd
holding 51%. These properties collectively 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 northeastern British Columbia. These projects are located
approximately 260 kilometres north northwest of the town of Mackenzie, British Columbia, Canada.
Zinc (Zn)
Zinc is one of many critical metals facilitating the transition to a low-carbon and greener future and is used
in renewable energy storage systems and through the protection of steel to improve its durability and
service life in solar and wind turbine applications. The primary uses of zinc are the galvanization of steel
protecting against corrosion due to weather conditions, the production of brass and bronze, and in die-
casting to produce a wide range of metal products. In agriculture, zinc can also increase crop yields and
crop quality and is an essential nutrient in human development and disease prevention.
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 responsible for the technical information contained in this
release. Mike Makarenko P.Eng, JDS Energy and Mining, is the designated Qualified Person as defined by
National Instrument 43-101 and is responsible for the PEA 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
ZINCX RESOURCES CORP.
“PEEYUSH VARSHNEY”
PEEYUSH VARSHNEY, LL.B
CEO & CHAIRMAN