ZincX Resources Begins Crew Mobilization for 2019 Drill Program at Akie
FOR IMMEDIATE RELEASE
Contact: Investor Relations Thursday, June 6, 2019
Phone (604) 684-2181 (No.2019-06-04)
ZincX Resources Begins Crew Mobilization
for 2019 Drill Program at Akie
Vancouver, British Columbia, Canada – Thursday, Jun e 6, 2019 – ZincX Resources Corp. (“ZincX
Resources” or “the Company”, TSX Venture Exchange: ZNX) is pleased to announce that the
exploration crew has begun mobilizing personnel and a diamond drill to the Akie Project. The Company i s
now executing on its planned 2,500 metre large-diam eter HQ diamond drilling program that will focus on
the Cardiac Creek deposit and build on the positive and robust results from the 2018 Preliminary Economic
Assessment (PEA).
2019 Drill Objectives:
The 2019 exploration program will focus on the cent ral high-grade core of the deposit targeting the in itial
five years of future mine production identified in the PEA. The program will aim to:
• Provide additional close-spaced drill intercepts t o increase confidence in the current resource
model
• Extend the high-grade core of the deposit further to the southeast
The 2019 drilling program will also allow for the collection of key technical data including:
• The collection of geotechnical and geomechanical d ata to improve the understanding of the rock
mass characteristics of the deposit and provide advanced engineering data for future underground
mine design
• The ongoing collection of structural data to asses s ground support requirements and provide input
data for stope dimensions
The 2019 exploration drill program will commence shortly andis expected be complete by early Fall.
In addition to the exploration program, the Company has submitted detailed plans to the Ministry of Energy,
Mines & Petroleum Resources to permit a surface geo technical and hydrogeological program to confirm
site selection for key mine infrastructure areas id entified in the PEA. The referral process is curren tly
underway and the Company expects a favorable response shortly.
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.
With additional drilling completed in 2018, 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
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. These properties collectively extend north west 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.
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