ZincX Resources Announces Final 2018 Drill Results including new results from the Sitka Zone
FOR IMMEDIATE RELEASE
Contact: Investor Relations Friday, November 16, 2018
Phone (604) 684-2181 (No.2018-11-20)
ZincX Resources Announces Final 2018 Drill Results
including new results from the Sitka Zone
Vancouver, British Columbia, Canada – Friday, Nov. 16, 2018 – ZincX Resources Corp. (“ZincX
Resources” or “the Company”, TSX Venture Exchange: ZNX) is pleased to announce assay results
from the final three drill holes of the 2018 exploration campaign that targeted alternate drill target s at Akie,
including the Sitka, North Lead and Southeast zones.
The final three holes of the program targeted, in o rder of drilling, the Southeast zone, the North Lea d
Anomaly zone, and the Sitka extension.
Sitka Extension
The final drill hole of the 2018 season was complet ed approximately 400 metres southeast of the Sitka
Zone targeting a strong silver-in-soil anomaly projected to be the strike extents of the Sitka Zone. The Sitka
Zn-Pb massive barite showing is hosted within the eastern thrust panel of prospective Gunsteel Formation
stratigraphy and is located approximately 4 kilometres east of the Cardiac Creek deposit. The showing is
the first known occurrence of mineralisation on the eastern thrust panel of the property . The first
two holes of the program totaled 508 metres and tes ted the down-dip extent of the Zn-Pb-barite
mineralisation that outcrops at surface. They trace d sphalerite-bearing vein mineralisation to a depth of
approximately 100 metres below surface. Assay resul ts from the Sitka Zone drilling are shown in the ta ble
below.
DDH A-18-149
The hole collared in strongly limonite-altered silt stone of the Road River Group to a downhole depth o f 66
metres followed by intercalated silty mudstone, bio turbated mudstone and siltstone intervals. The cont act
between the Road River Group and the Kwadacha limestone at 97.98 metres is heavily faulted and marked
by strong limonitic to hematitic alteration. Blue-g rey quartz veins, cross cut by white quartz veins, are
present within the faulted contact and are similar to the mineralized veins observed in previously rep orted
holes A-18-144 and A-18-145. The vein/fault zone hosts weathered sphalerite and visible seams of galena.
The Akie Formation was intersected at a downhole depth of 133.3 metres and is characterized by common
silty/sandy beds. From 199 to 240 metres there are scattered centimetre-wide bands of nodular barite and
thin pyrite lenses. The hole was shut down at a downhole depth of 249 metres.
Notable zinc and lead results were intersected over 12.98 metres from 94.86 to 107.84 metres that
returned 1.1% Zn including 3.5% Zn over 2.80 metres at a downhole depth of 95.8 metres. Sampling
over a broad 40 metre sequence of the underlying sh ale returned significant silver values on a semi-
continuous basis ranging from 5 to 14 g/t Ag over n umerous select intervals. The results suggest a str ong
correlation with the overlying prominent Ag soil an omaly. The drilling did not fully define the extent of the
silver enrichment within the host shale and additio nal drilling is required to close off the highly an omalous
shale and to refine the model for future drilling i n the area. The silver appears to be associated wit h the
bands of nodular barite and thin pyrite lenses that are present within the shale however more analysis is
required to better understand this anomaly.
Peeyush Varshney, President and CEO commented: “We continue to be excited by the promising
results from the Sitka Zone target area. The presen ce of this new style of mineralisation on an
underexplored area of the eastern Akie property is very encouraging.”
Southeast Target:
Drilling targeted the southeastern strike extent of the Cardiac Creek mineral horizon beyond the curre nt
limits of the modeled Cardiac Creek deposit on the Akie property. The drilling was in an area previous ly
untested and outbound of the Cardiac Creek deposit limits by approximately 200 metres. Drill hole A-11-95
drilled in 2011 is the closest hole to the target returning 24.6 metres (true width) of 3.07 % combined Zn+Pb,
including a higher-grade interval of 9.8 metres (true width) of 4.98% combined Zn+Pb.
DDH A-18-147
Drill hole A-18-147 was collared into Gunsteel Form ation shale. The hole intersected a large interval of
hybrid proximal/distal mineralization from approxim ately 280 to 448 metres (168 meters of core length) .
The mineralisation is characterized by repetitive b eds of laminated pyrite and nodular barite interbed ded
with shale. The sulphides are visibly folded on a l arge scale but sufficiently deformed and transposed that
it appears planar.
Proximal Facies mineralisation consisting of thickly bedded pyrite with nodular barite interbedded with shale
was intersected over 10 metres at a downhole depth of 480 metres. Sphalerite laminations suggest the
presence of the extensive Cardiac Creek mineral hor izon. A large quartz-carbonate-pyrite vein zone is
present at a depth of 511 metres that appears to ha ve overprinted laminated pyrite mineralisation and
bedded barite, cherty shale, and crystalline limest one of the Paul River Formation. The limestone
transitioned into a calcareous, well banded siltsto ne of the Road River group, where the hole was shut
down at a final depth of 535.5 metres.
The thick hybrid zone of distal/proximal facies min eralisation encountered from 280 metres to 448 metr es
returned scattered anomalous Zn values with complex zonation. The 10-metre zone logged from 480
metres is tentatively identified as the Cardiac Cre ek mineral horizon which returned numerous anomalou s
Zn values exceeding 0.1%. The best zinc grades are associated with the laminated, bedded barite zone at
the contact between the Gunsteel Formation and the Kwadacha Limestone. The interval from 507.94 to
514.98 metres returned Zn values reaching 0.53% and averaging 0.31% Zn over an apparent width of 7.04
metres.
A tentative interpretation suggests there is a tran sitional structural change between the Cardiac Cree k
deposit located to the northwest and hole 147; and the large distal/proximal facies is representative of an
upper folded lens of mineralisation. The Cardiac Creek deposit is typically underlain by debris flows located
down-dip of the Kwadacha limestone. As such, the pr esence of limestone in hole 147 suggests that the
intercept is situated too high in the basin. Drilli ng at depth is required to adequately test this tar get area.
This is also supported by the recognition of a gentle plunge to the higher grade mineralisation observed on
the southeast side of the modeled Cardiac Creek dep osit. More analysis is required in the SE zone to
determine its stratigraphic/structural setting in r elation to the deposit and determine the merit of f urther
drilling at depth. The hole experienced significant downhole deviation which put the intercept high in the
hangingwall stratigraphy and well above the planned target depth. Drill results are tabulated below.
North Lead Anomaly
The North Lead Zone is located approximately 3 kilo metres along strike to the northwest of the current
limits of the Cardiac Creek resource model. Prelimi nary drilling in this area has intersected thick in tervals
of laminar bedded pyrite with barite that are highl y anomalous in both lead and zinc. Drill hole A-10- 68
intersected 126.23 metres (apparent width) of low-g rade zinc mineralization which, when compared to th e
newly derived facies model for Cardiac Creek, is su ggestive of increasing grade of the mineralization at
depth. Drill hole A-10-68 is comparable in characte r to the proximal facies mineralisation observed at the
Cardiac Creek deposit. Drill hole A-13-104 yielded similar results to A-10-68. The persistence of a low grade
hangingwall scenario appears to conform to modelling.
DDH A-18-148
Drill hole A-18-148 collared into shale, limestone and siltstone of the Road River Group. The Road Riv er
Group was in thrust contact with black shales of th e Akie Formation at a depth of 253.00 metres which
transitioned into the prospective Gunsteel Formatio n shales at a depth of 256.50 metres. Distal facies
laminated pyrite and nodular barite mineralisation was intersected on a semi-continuous basis over
approximately 250 metres from 301.50 to 551.87 metr es. Narrow interbeds of shale and cherty shale are
present within the mineralisation. Shale and debris flows of the Paul River Formation were encountered at
a depth of 592.30 metres. The hole ended in the Road River Group siltstone at a depth of 721.46 metres.
The hole returned anomalous zinc values ranging fro m 0.1% to 0.43% Zn in numerous intervals over a
combined thickness of 125 metres, from a downhole d epth of 300 to 483 metres. The sampling defined
very thick intervals of zinc enrichment and the enr ichment remains open ended. Additional drilling is
required to fully define the extent of the zinc enr ichment. Overall, the presence of distal mineralisa tion is
further encouragement that the limited drilling to- date at North Lead continues to vector towards high er-
grade zinc values. 3-D modeling of the area continues to examine future drill targets to the northwest of the
present cluster of holes. The best zinc intercept o f the thick zinc anomalous sequence of distal
mineralization is tabulated below.
Peeyush Varshney commented “The North Lead results are similar to what we have seen from this zone
and we are encouraged by thick sequences of distal mineralization that conform to our geological model
for the Cardiac Creek deposit. We anticipate additional drilling to the NW will direct us to higher-grade zinc
intersections. The SE zone drilling confirms the ex tensive Cardiac Creek Mineral Horizon is present an d
has now been mapped by drill intercept over a strik e extent of greater than 7 kilometers. This gives
encouragement that the Cardiac Creek style high-grade Zinc mineralization that we know from the deposit
remains to be discovered along strike. We look forw ard to analyzing this year’s results and incorporat ing
them into our exploration plans for 2019.”
Select drill results are tabulated below.
Table of 2018 Drill Results
Drill Hole Zone From (m) To (m) Apparent Width (m)* Zn (%)
A-18-144 Ɨ Sitka 172.72 174.59 1.87 3.54
incl 172.72 173.72 1.00 5.76
186.51 187.15 0.64 1.53
196.70 201.78 5.08 3.79
incl 196.70 200.00 3.30 5.73
incl 199.01 200.00 0.99 11.33
A-18-145 Ɨ Sitka 148.13 148.76 0.63 7.51
159.40 159.80 0.40 3.35
163.37 163.83 0.46 4.65
168.05 171.55 3.50 3.72
incl 168.05 168.91 0.86 11.09
175.09 175.69 0.60 2.36
A-18-147 SE Zone 475.97 487.06 11.09 0.10
507.94 514.98 7.04 0.31
A-18-148 North Lead 417.25 420.21 2.96 0.31
A-18-149 Sitka Ext. 94.86 107.84 12.98 1.10
incl. 95.80 97.98 2.18 3.47
*True width unknown at this time. Ɨ Previously released.
QA/QC
ZincX Resources has implemented a rigorous quality assurance/quality control program at the Akie property
using best industry practices. All drill core is logged for geology, structure, veining, alteration, mineralisation,
and geotechnical parameters. Sections of sulphide m ineralisation are marked for sampling by a geologis t
and a series of standards, duplicates and blanks are inserted into the sample stream for QA/QC purposes.
Prior to the cutting of samples, all core boxes are photographed for due diligence and record keeping
purposes. The samples are split by a diamond saw, t agged and bagged and forwarded by bonded carrier
to Acme Labs (a Bureau Veritas Group Company) of Vancouver, BC, for analysis. Documentation recording
the chain of custody is kept for each shipment.
Drill core samples are prepared for analysis using the PRP70-250 sample preparation method. Assays for
zinc, lead and silver are obtained using AQ270 anal ytical package with sample digestion using aqua reg ia
solution followed by ICP-ES and ICP-MS analyses. Ba rium content is determined by LF301-Ba analytical
package using LiBO2/LiB4O7 fusion and ACS grade nit ric acid followed by ICP-ES analysis. Overlimit
values of lead and zinc are rerun using AQ371 analytical package using a hot aqua regia solution followed
by ICP-ES analyses. Specific gravity is measured on each drill core sample from the pulverized pulps using
SPG01 analytical package. Check assays on drill pul ps are routinely conducted by ALS Minerals of North
Vancouver, BC with their OG46 analytical package us ing aqua regia digestion and ICP-ES analysis. All
remaining drill core is stored at the Akie explorat ion camp in steel fabricated core racks with all-we ather
metals roofs.
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 ZincX Resources (f ormerly Canada Zinc Metals Corp) 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, 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).
The PEA envisages a conventional underground mine a nd 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 Case 1
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 DMS 2 upgrade) 10.0% Zn; 1.9% Pb; 17.17 g/t Ag
Total Payable Metal (LOM) $3,960M 3
Initial CAPEX $302.3M including $45.7M contingency
LOM Total CAPEX $617.9M including $58.5M contingenc y
All-in Total OPEX $102.4 per tonne milled
Pre-Tax NPV 7% $649M
Pre-Tax IRR 35%
Pre-Tax Payback 2.6 years
After-Tax NPV 7% $401M
After-Tax IRR 27%
After-Tax Payback 3.2 years
1. The base case used metal prices are calculated f rom the 3 year trailing average coupled with two ye ar forward projection of the
average price; and are: US$1.21/lb for zinc, US$1.0 0/lb for lead and US$16.95 for silver. A CDN$/US$ e xchange 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 re serves 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 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 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 n orth northwest of the town of Mackenzie, British
Columbia, Canada.
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. 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