ZincX Resources Concludes 2019 Akie Drill Program
FOR IMMEDIATE RELEASE
Contact: Investor Relations Thursday, August 22, 2019
Phone (604) 684-2181 (No.2019-08-07)
ZincX Resources Concludes 2019 Akie Drill Program
Vancouver, British Columbia, Canada – Thursday, August 22, 2019 – ZincX Resources Corp. (“ZincX
Resources” or “the Company”, TSX Venture Exchange: ZNX) is pleased to advise the 2019 Akie Drill
program has been completed and all exploration crew are in the process of demobilization for the seaso n.
The Company previously announced a 2,500 metre larg e-diameter HQ diamond drilling program to focus
on the Cardiac Creek deposit and build on the posit ive and robust results from the 2018 Preliminary
Economic Assessment (PEA).
2019 Akie Drill Program Highlights
• 4 large-diameter HQ drill holes competed for a tot al meterage of 2,347 metres
• All holes were drilled successfully to their inten ded depth
• All holes successfully tested the Cardiac Creek Zo ne with excellent recovery of thick intervals of
sphalerite-galena-barite mineralization; including highly mottled textures which at Cardiac Creek
indicate higher than typical zinc grades
• Over 480 HQ drill core samples submitted for analy sis with results expected in late summer to early
fall
2019 Exploration Program
Drill Objectives
The 2019 exploration program has focused on the central high-grade core of the deposit targeting the initial
five years of future mine production identified in the PEA. The program was designed 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 was also intended to collect 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
Cardiac Creek Deposit
The Company previously reported on the first two ho les of the program. This update provides a brief
description of the final 2 holes: DDH A-19-153 and A-19-154 .
Drill Hole A-19-153 targeted the upper portion of the high-grade core of the deposit in an area up-dip of
hole A-17-137 which was drilled and reported in 201 7, and intersected a phenomenal intercept of 57.79
metres (true width) grading 11.79% Zn+Pb and 19.1 g/t Ag ; including a high-grade core interval of 22.61%
Zn+Pb and 36.2 g/t Ag over 15.44 metres (true width).
Drill Hole A-19-153 intersected the Cardiac Creek zone at a downhole d epth of 453.93 metres continuing
downhole to a depth of 507.23 metres representing a downhole thickness of approximately 53.34
metres . The zone is characterized by thickly bedded, lami nar sulphide beds and frequent mottling
(increasing downhole) with a decrease in pyrite and an increase in sphalerite laminations, in addition to
barite, carbonate and quartz. Galena also appears i n the mineralized zone as disseminations in mottled
sections and in tension gashes. Mottling textures are seen frequently in beds throughout, increasing in
proportion after 490 metres after which strong mott ling textures occur until the end of section. Mottling
textures are generally indicative of higher-grade Z n and Pb mineralisation . The hole was completed
to a depth of 545.75 metres. A total of 166 samples , including industry standard QA/QC samples, were
collected.
Drill hole A-19-154 targeted the lower portion of the high-grade core at its approximate center. The holes
was drilled successfully from the footwall rocks “u p” into the zone and finished above the zone in
hangingwall rocks. This hole was specifically desig ned to gather as much geotechnical information as
possible in order to facilitate further development of mine design engineering.
The Cardiac Creek Zone was intersected at a downhole depth of 349.04 metres continuing to 410.27 metres
representing a downhole interval of 61.23 metres . Cardiac Creek mineralisation is characterized by
appearance of steel grey sphalerite in thickly bedded, laminar sulphide beds bearing sphalerite, pyrite and
barite. Mottling textures are common throughout the section in which fine grained metallic galena is
seen. Individual mineralized beds are locally inter bedded with black siliceous shale beds. The hole
continued “up-section” and was completed at a depth of 584.0 metres in hangingwall Gunsteel shale. A
total of 140 samples, including industry standard QA/QC samples, were collected.
All samples have been shipped to Acme Laboratories (A Bureau Veritas Company) in Vancouver for
analysis. Results are expected in late summer to early fall.
Mr. Peeyush Varshney, CEO, commented: “We are very pleased to conclude another successful drill
campaign on several high-priority targets within th e block model of the Cardiac Creek deposit. We
completed drilling on all selected targets and care fully managed resources to keep on schedule and on
budget. We look forward to announcing drill results over the coming weeks.”
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 for the Cardiac Creek deposit in late 2017
based on additional drilling completed in 2017, 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