Canadian Zinc Corporation is pleased to report a new diamond drill exploration program is set to commence at the Company's Prairie Creek Project, Northwest Territories.
Five drill holes totalling approximately 2,500 metres of coring are planned to test a large multi-stacked gravity and electromagnetic ("EM") geophysical anomaly that is estimated to be at a depth of between 200 and 450 metres below surface, situated approximately one kilometre from the mine site, outside but adjacent to the defined mineral resource. The drill rig is being mobilized to the first pad and drilling is expected to commence by the end of the week.
Alan Taylor, Vice President of Exploration and COO of Canadian Zinc stated, "The delineation at the end of last season of a new strong coincident EM and gravity geophysical anomaly adjacent to the defined deposit was particularly interesting and we are anxious to drill test it. The discovery of any resource in this area could have a significant impact on the economics of the existing project and future implications on additional property-wide exploration at Prairie Creek."
In 2012, a geophysical exploration program involving surface and downhole electromagnetic and surface gravity surveys was completed in the proximity of the Prairie Creek deposit. The results defined a strong multi-channel EM anomaly. A coincident gravity anomaly was also identified over the same area by a loose-grid gravity survey.
This 2013 drill program is fully supported by a recently completed $4 million flow-through financing which closed on August 20, 2013 (refer to Company news release of same date). The Company has mobilized one of its three surface diamond drill rigs to commence this program which will continue for the next two months.
Prairie Creek Mine Background
The Company's main project is the 100%-owned Prairie Creek zinc, silver and lead project located in the Northwest Territories, Canada. The Prairie Creek Project contains a Mineral Reserve of 5.2 million tonnes averaging 9.4% zinc, 9.5% lead and 151 g/t silver. In addition, Prairie Creek hosts an Inferred Resource of 6.2 million tonnes averaging 14.5% zinc, 11.5% lead, 0.57% copper and 229 g/t silver. (AMC Mining Consultants (Canada) Ltd. J M Shannon and D Nussipakynova, Qualified Persons, June 2012).
The Mackenzie Valley Land and Water Board (the "MVLWB") completed its regulatory process July 5, 2013 by finalizing a Type "A" Water Licence and subsequently forwarding it to the Minister of Aboriginal Affairs and Northern Development Canada with the recommendation that the Minister approve and sign the Licence. The MVLWB has previously issued three Land Use Permits and a Type "B" Water Licence to the Company for future operations.