Thursday, July 16, 2009

China, Zinc and Lithium: Canada Zinc Metals 2009 Akie and Kechika Regional Exploration Program Commences CZX.v, TNR.v,, ABX,, FXI, HUI,

We have our promised surprise on growth in China:

"China’s Economic Growth Accelerates to 7.9% on Loans (Update1)
By Bloomberg News
July 16 (Bloomberg) -- China’s
gross domestic product grew 7.9 percent in the second quarter as the nation became the first of the major economies to rebound from the global recession.
The figure, announced by the statistics bureau in Beijing today, exceeded the 7.8 percent median forecast of 20 economists in a Bloomberg survey and a 6.1 percent gain in the first quarter that was the slowest in almost a decade.
China, the biggest contributor to global growth, overtook Japan as the world’s second-largest stock market by value yesterday after a 4 trillion yuan ($585 billion) stimulus package spurred record lending and boosted share prices. The first-half expansion laid the foundation for meeting the year’s 8 percent growth target for creating jobs and maintaining social stability, the statistics bureau said today

And we have our Chinese M&A Canada Zinc, Lithium and REE story on the radar screen now: Canaccord Adams Junior Mining put it among others as desired target for Chinese expansion.

"Canada Zinc Metals CZX.v is as a Takeover Target in July 15th Canaccord Capital's Morning Coffee

Insatiable appetite. In the first half of 2009, commodities discussion generally focused on China stockpiling physical metal, building inventories to supply feed for its expanding industrial base. With its storehouses bursting with metal, China may have altered its focus from the present to the future. Security of supply has tended to be tied to rarer metals and minerals. However, security of supply has taken on a different tone within the borders of China. Security of supply is no longer simply applicable to those specific resources required to sustain strategic industries that are considered vital to a national existence. For China, it seems that “security of supply” has evolved into a synonym for “competitive advantage”. Chinese demand for metals has been a significant factor in maintaining high metal prices and now it appears that China’s appetite for metals could begin to have a more significant impact on the pricing of mining equities. From an investor’s perspective, the goal is to own what China needs and China needs metals. And strategically, it could be easier for China’s state-owned corporations to fly under the radar and buy or take positions in smaller foreign corporations rather than their larger cousins. We return to our long-term thesis: own quality junior exploration and mining companies with superior projects. Canaccord Adams Junior Mining Weekly team highlights the following junior companies with projects that could be of interest to a Chinese mining group: Axmin Resources (AXM), Bear Creek Mining (BCM), Canada Zinc Metals (CZX), Candente Resources (DNT), Chariot Resources (CHD), Continental Minerals (KMK), Corriente Resources (CTQ), Forsys Metals Corp (FSY), Norsemont Mining (NOM), and Zazu Metals Corp (ZAZ)."

"Companies (Chinese - S.) are allowed from 1st of August basically to shop around the world for necessary resources in exchange for US Dollars effectively which are overflowing the monetary system."

After recent strategic investment in TNR Gold TNR.v Canada Zinc Metals is busy on developing its status as regional play:

"Strategy looks like Investment expansion:Tongling - Canada Zinc Metals - District play with TEC and Korea Zinc - Lundin Mining on board - Zinc and Lead - Cars - Growth space: China largest auto market from March - New Bull - Electric cars - Lithium and REE - TNR Gold and International Lithium Corp."

"Canada Zinc Metals's Akie holds 23.6 million tons of high grade Zinc, nearby J/V between TEC and Korea Zinc holds another 50 million tons. District play can mean 100 million tons with further discoveries and deals among these three players and now CZX.v has a strong backing strategic partner with deep pockets."

"Vancouver, British Columbia CANADA, Jul 15, 2009 (Filing Services Canada via COMTEX) ---- Canada Zinc Metals Corp. (CZX: undefined, undefined, undefined% - TSX Venture), ("Canada Zinc Metals " or the "Company") is pleased to report that the 2009 exploration program on the Akie Property and Kechika Regional tenures (collectively the" Properties") has commenced. This year's exploration program, which is helicopter supported, will be staged from the Akie base camp and will consist primarily of geologic mapping, geochemical sampling and detailed prospecting, with particular emphasis on the latter.. The Properties, all owned 100% by the Company, are centered approximately 260 kilometers north-northwest of the town of Mackenzie in northeastern British Columbia.
Akie Property Program
Work will focus on three high priority soil +/- silt geochemical targets, all underlain by permissive Gunsteel shale, that have been identified as a result of previous work by the Company and others. Of these, the North Lead Anomaly, located some 2.3 km northwest of the nearest drill hole to penetrate the Cardiac Creek deposit, is considered to be the most prospective due to the presence of coarse grained, heterogeneous, mineralization encountered in a 1996 drill hole (11.60% zinc and 9.05% lead over an interval of 0.80 m) within a geologic environment identical to that at Cardiac Creek. In addition, this mineralization is accompanied by sulphide (pyrite, sphalerite and galena) replacement of the fragments and the matrix of an underlying debris flow, quartz-carbonate alteration in footwall rocks beneath the debris flow, and widespread high lead/zinc ratios in the soil samples collected from the surrounding area, all characteristics of a typical vent complex/feeder zone associated with a SEDEX deposit. Hydrothermal centres such as these are often associated with higher grade mineralization at the transition between the vent complex and the laterally extensive bedded ore facies.
Kechika Regional Program
The Kechika regional program will focus on the Pie, Yuen Extension and Yuen claims that extend northwestward from the Akie Property for a distance of some 30 km and encompass the key geological package of Middle to Late Devonian fine grained sediments and associated carbonate rocks that host the Company's Cardiac Creek deposit and the nearby Cirque deposits owned by Teck Resources and Korea Zinc.
The 2009 regional exploration program will have two primary components:
I. To conduct a detailed investigation of the favourable Gunsteel stratigraphy along strike from the Cardiac Creek deposit. These rocks exhibit widespread anomalous lead-zinc soil and silt geochemistry and numerous lead-zinc-barite showings over almost the entire extent of the three tenures, and;
II. To evaluate the continuation to the northwest onto the Yuen tenure and southeast onto the Pie tenure of the prospective package of Gunsteel rocks that host the two Cirque deposits. The favourable strike length covers a total distance of 15 kilometres.
"With the commencement of our 2009 exploration program, we anticipate field work leading to even better and more refined understanding of the geologic setting and to a more concentrated focus that will result in a drill program on new targets. Given our successful first phase of regional exploration last year in combination with historical work, I am certain new discoveries can be made in the months to come," commented Jim Mustard, President of Canada Zinc Metals. "Although there is continued uncertainty in the capital markets, we are pleased that the Board of Directors has approved an exploration budget this year of approximately $1.5 million. The work that we will be conducting at the Akie property, including further environmental baseline studies, will continue to advance the project towards a potential underground program next year."
About the Akie and Kechika Regional Properties
The Akie zinc-lead property is situated within the southern-most part (Kechika Trough) of the regionally extensive Paleozoic Selwyn Basin, 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 Inmet Mining Corporation during the period 1994 to 1996 and by Canada Zinc Metals since 2005 has identified a significant body of baritic-zinc-lead SEDEX mineralization (Cardiac Creek deposit). The deposit is hosted by variably siliceous, fine grained clastic rocks of the Middle to Late Devonian 'Gunsteel' formation. The Company has outlined a NI 43-101 compliant inferred resource of 23.6 million tonnes grading 7.6% Zn, 1.5% Pb and 13.0 g/t Ag (at a 5% Zn cut off grade).
Two similar deposits, Cirque and Cirque South Cirque, located some 20 km northwest of Akie and owned under a joint venture by Teck Resources and Korea Zinc, are also hosted by Gunsteel rocks and have a combined geologic inventory in excess of 50 million tonnes (non 43-101 compliant).
In addition to the Akie property, Canada Zinc Metals controls a large contiguous group of claims called Kechika Regional hosting identical geology as occurs at Cirque and Akie. Kechika Regional includes Mt Alcock (best historic drill intercept 8.8 metres grading 9.3% Zn+Pb) and several regional base metal anomalies.
Qualified Person
John R. Fraser, P.Geo. (B.C.), Vice President of Exploration and a Director of Canada Zinc Metals is the Qualified Person for the Company, as defined by NI 43-101, and is responsible for the technical information contained in this release."
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