Issue link: http://resourceworld.uberflip.com/i/107613
Silver is present with the tennantite-tetrahedrite and to a lesser extend with galena. Vein widths vary between less than 0.1 metre, to more than 5 metres with an overall average true horizontal thickness of approximately 2.7 metres. Based on a mining rate of ~1,350 tonnes per day, using 100% underground cut and fill mining, utilizing paste backfill, the project has a mine life of 11 years. 100% of tailings will be processed through the paste backfill plant with the addition of cement and returned underground for final disposal. Preliminary economic assessment suggests a pre-tax NPV of $253 million, IRR of 40.4%, average annual EBIDTA of $66 million and a payback period of three years. The project has considerable upside potential in light of the continuity of the main vein type mineralization and the related stratigraphic nature of the deposit and the presence of base metal/silver surface showings over a strike distance of 16 km and through surface drill holes beyond the limits of the presently defined reserves. The down-dip extensions of the vein mineralization are open to depth. A parallel mineralized zone in the early stages of exploration lies 5 km to the west of the Prairie Creek main zone. The resource potential of the project could easily be doubled or more depending on ongoing successful exploration programs and current economics. In November, Canadian Zinc announced the drilling results of the 2012 exploration program comprising 5,629 metres in 12 holes that focused on two areas; at the Minesite area where further shallow testing and extension of the current reserves/resources were completed, and at Casket Creek where the deep-hole program continued from the previous year. The Minesite area drilling was designed to fill in a number of open areas and also to test for extensions of the known reserves/ resources. This drilling was highlighted in hole PC-12-216 that intersected 1.3 metres grading 2,059 g/t or 60 oz/t silver and a second intercept of 51.3% lead and zinc over 1.0 metre. Several other intercepts in the 16% to 44% range of combined lead and zinc with multi-ounce silver assays were encountered in other holes. In 2012, Canadian Zinc announced the acquisition, through a plan of arrangement, of Paragon Minerals Corp. which has as a flagship project, a 100% interest, in the South Tally Pond property, including the Lemarchant deposit in the proven mining district near Buchans, Newfoundland. The project has indicated resources of 1.34 Mt of 3.70% zinc, 0.41% copper, 0.86% lead, 1.0 g/t gold and 50.41 g/t silver and additional inferred base and precious metal resources. The project is adjacent to the Teck Resources' Duck Pond, an operating copper-zinc mine and mill complex. In addition, Canadian Zinc owns a 13% interest in Australian-listed Vatukoula Gold Mines plc which operates the former Emperor gold mine in Fiji. n Providing a complete range of geotechnical and mineral exploration services, MRB has over 45 qualified personnel to help you explore and develop your precious metal, base-metal, iron ore, graphite and Rare Earth Element projects. •Projectmanagement •Explorationplanningandexecution •Resourceevaluation •43-101TechnicalReports •Data-managementandanalysis •Outstandingtrackrecordwithourmanyclients FROM START TO FINISH, MRB & ASSOCIATES DELIVERS. For more information please contact: Martin Bourgoin, President at: martin@mrbweb.com 1748 Chemin Sullivan, Suite 2100, Val d'Or QC J9P 7H1 Tel : 819-874-8768 Fax : 819-874-8771 www.mrbweb.com 30 www.resourceworld.com february 2013