ZincX Resources Provides Exploration Update at Akie
FOR IMMEDIATE RELEASE
Contact: Investor Relations Tuesday, July 24, 2018
Phone (604) 684-2181 (No.2018-07-12)
ZincX Resources Provides Exploration Update at Akie
Vancouver, British Columbia, Canada – Tuesday, July 24, 2018 – ZincX Resources Corp. (“ZincX
Resources” or “the Company”, TSX Venture Exchange: ZNX) is pleased to provide an update on drilling
activities at the flagship Akie Property. The Compa ny previously announced a planned 2,500 metre large -
diameter HQ diamond drilling program that focused on high-priority targets along strike of the Cardiac Creek
deposit and on the eastern Akie Gunsteel panel.
2018 Drill Objectives:
• Drill test the southeastern strike extent of the C ardiac Creek deposit beyond the current limits of
the resource model.
• Drill test the down-dip extent of the North Lead t arget where previous drilling intersected extensive
intervals of bedded pyrite mineralisation and a thi n massive sulphide lens that are both highly
anomalous in zinc and lead. The drill targeting is guided by a new facies model developed from
the mineralisation on the Akie and Mt. Alcock properties.
• Shallow drill targets at the Sitka showing to test the Zn-Pb-barite mineralization outcropping at
surface where previous channel sampling in 2013 returned high grade assay results.
Drilling has now been completed at the Sitka target. A total of 508 metres were completed in two holes from
the same drill pad. Drill hole A-18-144 was a steep ly angled hole targeting the down-dip extension of the
massive mineralized barite body seen at surface. Dr ill hole A-18-145 was a shallower angled hole testi ng
the same zone up-dip of the intercept from drill ho le A-18-144. The showing is situated along the high ly
prospective contact between the Earn Group (Gunsteel Formation shale) and Silurian Siltstone.
DDH A-18-144
Drill hole 144 (the deeper hole) intersected sphale rite-bearing veins within both the Road River Silur ian
Siltstone and underlying Kwadacha Limestone. Minera lisation and veining was logged from 173.50 to
216.90 meters downhole. The veining is concentrated locally with abundant coarse grained sphalerite with
a total aggregate length of just over 4 metres. The re is also scattered sphalerite present throughout the
limestone from 200 to 216 metres within fractures and stringers.
DDH A-18-145
Hole 145 (the shallow hole) intersected sphalerite- bearing veins primarily within siltstones that are spread
out across an interval from 148.13 to 175.57 metres with more localized concentrations of sphalerite-
bearing veins. The total aggregate of well-mineralized vein material would be in the order of 4 metres.
The mineralization observed in the two holes from t he Sitka showing differs from the SEDEX style
laminated, stratabound mineralization known from th e Cardiac Creek deposit. The mineralization
intersected at Sitka appears to be vein-related and the veins host abundant coarse-grained red/tan/bro wn
sphalerite. At this time there is no conclusive ide ntification of the Sitka barite-sphalerite-galena
vein/structure seen at surface, however the holes d id encounter mineralisation to a depth of 100 metre s
below surface which remains open for future drillin g. Samples have been cut and shipped to the lab for
assay. Results are expected in several weeks.
DDH A-18-147
After completion of Sitka drilling the drill was mo ved to test the SE extension zone which is located
approximately 215 metres southeast and along strike of the Cardiac Creek deposit. The first hole (A-18 -
146) was stopped near the collar due to excessive d eviation. The second hole (A-18-147) was completed
but did experience downhole deviation and finished approximately 55 metres up-dip of the target depth. A
very thick interval of distal facies pyrite with barite was intersected from 340.5 to 423.4 metres in Gunsteel
Formation shale. This interval appears to be a hybr id between the typical pyrite-barite dominated Dist al
facies and the thickly bedded pyrite of the Proxima l facies that is usually present above the main zon e at
Cardiac Creek. Sulphides and barite were also obser ved in underlying limestone. The presence of
limestone suggests that the drill hole deviated too high in this area to effectively target the deeper transition
point between Gunsteel Formation shale and limeston e known from drilling at Cardiac Creek. Results are
pending from samples taken. The Company is consider ing a further test of this location but at a much
steeper angle.
The drill has now moved to the North Lead target ar ea to test the down-dip extension of known
mineralisation present in A-13-104.
HEBS (Hyper Enriched Black Shales) Mineralization
The Company recently hosted senior geologists from the Geological Survey of Canada and Queen’s
University who are researching the unusual nickel-dominated mineralization that has been intersected
below the Cardiac Creek zone in several holes over the past several years and generally referred to as
Nick-style mineralisation. Work consisted of re-log ging the drill core from various drill holes and co llecting
samples for analysis.
The goal of this research is to develop a coherent genetic and exploration model for the metalliferous shale
horizon that is situated stratigraphically below th e Cardiac Creek Zn-Pb-Ag deposit. This will provide an
understanding of metalliferous shales in the southe rn-most exposure of such mineralization in the Selw yn
Basin, and serve as a comparison with similar miner alization in Yukon. The possible spatial and tempor al
linkages between this metalliferous shale and the overlying SEDEX mineralization will also be investigated.
The research is expected to lead to various academic papers expected to be published later in 2018/2019.
Corporate
Peeyush Varshney, President and CEO of the Company, commented; “We are pleased to be continuing
on with our 2018 exploration program on the Akie Property. With the recent announcement of the positive
preliminary economic assessment of the Cardiac Cree k deposit combined with recent M&A activity in the
base metals sector, we are seeing increasing strong interest in the Company and our flagship project from
mining groups and strategic investors alike. We are pleased to see recognition of the quality of the Cardiac
Creek asset and the prospectivity of the district-s cale opportunity for further discovery in the Kechi ka
Trough. We thank our shareholders for their continued support”.
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 2017, 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.
Pre-Tax After-Tax
NPV 7% IRR NPV 7% IRR
$649M 35% $401M 27%
The base case parameters for the PEA used US$1.21/lb Zinc, US$1.00/lb Lead, and US$16.50/oz Silver
See ZNX news releases from June 20 th , 2018 for important disclosures with respect to the Cardiac Creek PEA.
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