ZincX Resources Drills 10.74% Zn+Pb and 16.74 g/t Ag over 14.24 Metres at the Cardiac Creek Deposit
FOR IMMEDIATE RELEASE
Contact: Investor Relations Monday, Sept.23, 2019
Phone (604) 684-2181 (No.2019-09-09)
ZincX Resources Drills 10.74% Zn+Pb and 16.74 g/t Ag over 14.24
Metres at the Cardiac Creek Deposit
Vancouver, British Columbia, Canada – Monday, Sept. 23, 2019 – ZincX Resources Corp. (“ZincX
Resources” or “the Company”, TSX Venture Exchange: ZNX) is pleased to announce the second set
of assay results from the 2019 diamond drilling program on the Akie Project.
The Company recently completed a 4-hole large-diameter HQ diamond drill program that focused on the
Cardiac Creek deposit totalling 2,347 metres. All four holes successfully intersected the Cardiac Creek
Zone with excellent recovery of thick intervals of sphalerite-galena-barite mineralization; including highly
mottled textures which generally indicate greater than average zinc grades. Over 480 HQ drill core
samples have been submitted for analysis. Results from drill hole A-19-151 are presented below.
2019 Akie Drill Result Highlights
• Drill hole A-19-151 returned 9.8% Zn+Pb and 15.5 g/t Ag over a true width of 16.37 metres including
10.74% Zn+Pb and 16.74 g/t Ag over a true width of 14.24 metres
Drill hole A-19-151 targeted the lower portion of the high-grade core along its southeastern edge down dip
of the pierce point obtained from hole A-19-150. A broad envelope of mineralisation was intersected from
560.00 metres to 608.80 metres representing a true width of 30.85 metres that returned 5.9% Zn+Pb and
9.7 g/t Ag. Within this envelope the Cardiac Creek Zone is present from 568.42 metres to 594.40 metres,
grading 9.8% Zn+Pb and 15.5 g/t Ag over a true width of 16.37 metres. Higher-grade intervals are present
including 10.74% Zn+Pb and 16.74 g/t Ag over a true width of 14.24 metres from 571.15 to 593.75 metres.
The Footwall Zone was intersected below the Cardiac Creek Zone from 603.30 to 608.80 and returned
3.2% Zn+Pb and 5 g/t Ag over a true width of 3.51 metres.
The Cardiac Creek Zone is comprised of thickly bedded sulphides comprised of laminar pyrite interbanded
with steel-grey sphalerite and galena. Higher grade mineralisation is associated with the “mottled”
textured sphalerite with galena bands present within the laminar pyrite. This higher grade mineralisation
occurs over a 15-metre downhole interval from 580.90 to 595.15 metres.
The Footwall Zone consists primarily of thick beds of laminar pyrite with a few steel grey sphalerite-rich
bands displaying some localized mottling textures. A thin 1.30 metre silver rich pyritic massive sulphide
lens underlies the deposit at a depth of 610.50 metres. The hole was completed to a depth of 617.00 metres
within the calcareous siltstones of the Road River Group.
Significant results from A-19-150 and A-19-151 are tabulated below.
Drill Hole From (m) To (m) True Width (m)* Zn (%) Pb (%) Ag (g/t) Ɨ Zn+Pb (%)
A-19-150 480.75 537.14 38.18 6.14 1.15 10.78 7.29
CCZ 490.89 537.14 31.38 7.20 1.38 12.41 8.58
including 502.31 537.14 23.68 8.40 1.64 13.97 10.04
including 502.31 518.45 10.94 10.85 2.23 16.87 13.08
A-19-151 560.00 608.80 30.85 4.91 0.98 9.70 5.89
CCZ 568.42 594.40 16.37 8.10 1.67 15.45 9.77
including 571.15 593.75 14.24 8.88 1.86 16.74 10.74
Including 575.75 591.50 9.91 9.09 1.98 17.93 11.07
FW 603.30 608.80 3.51 2.70 0.45 5.02 3.15
(*) The true width in metres is calculated utilising the Geovia GEMS software package. The orientation of the mineralised horizon is
estimated to have an azimuth of 130 degrees and a dip of -70 degrees. (CCZ) = Cardiac Creek Zone; (HW) = Hangingwall Zone; (FW)
= Footwall Zone; (MS) = Massive Sulphide. (Ɨ) Ag values below detection were given a value half of the detection limit for the purposes
of weighted averaging.
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 mineralisation are marked for sampling by a geologist
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, tagged 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.
Assays for zinc, lead and silver are obtained using Acme Labs AQ270 analytical package with sample
digestion using aqua regia solution followed by ICP-ES and ICP-MS analyses. Barium content is
determined by Acme Labs LF301 analytical package using LiBO2/LiB4O7 fusion and ACS grade nitric acid
followed by ICP-ES analysis. Overlimit values of lead are rerun using Bureau Veritas AQ371 analytical
package using a hot aqua regia solution followed by ICP-ES analyses. Overlimit values for zinc are rerun
using Bureau Veritias GC816 analytical package, using a multi-acid digestion, followed by hydroxide
precipitation and EDTA titration analysis. Specific gravity measurements are taken using the SPG01
procedure.
Check assays on drill pulps are routinely conducted by ALS Minerals of North Vancouver, BC with their
OG46 analytical package using aqua regia digestion and ICP-ES analysis. All remaining drill core is stored
at the Akie exploration camp.
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 (formerly 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 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. 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 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 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.
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