Friday, July 02, 2010

Canada Zinc Metals: 2010 Akie Property Diamond Drilling Program Commences CZX.v, TNR.v,,,,,, FCX, RTP,,

This investment story is all about China and its growth. Warren Buffet mentioned along the lines, that in order to be the great investment story the business behind it should be really boring. Canada Zinc Metals with its Zinc deposit in Canada will pass this test at the first glance. What can be duller than Zinc in times of Twitter, Tesla and iPads? In order to get our idea you need to have a look at three things here: chart above with exponential growth in Car sales in China, Chart below with Zinc priced for a Double Dip and CZX.v corporate structure. Chinese Tongling holds now close to 20% in the company. Latest placement was with another Chinese investor at 0.6CAD with premium to the market of more than 30% (CZX.v now is at 0.45CAD). This investor controls now more than 10% of Canada Zinc Metals according to filing. With good odds for deposit to be expanding and blue sky potential of the new discoveries we think that the company is very close to more aggressive move by Tongling in order to secure the potential of this region play in Canada. For us it will be very interesting to see the destiny of investment stake by CZX.v in TNR Gold in this case, when Togling will become a partner with strategic opportunities in Lithium and REE investment and can be potentially involved in huge Argentinian Copper play at Los Azules.

"Commodities: Zinc Play.
Canada Zinc Metals CZX.v now has very prominent shareholders - players in Zinc market like Chinese Tongling and Lunding Mining Togling has paid for 13% in the company price of 0.425CAD above even today's level of 0.4CAD.
We have called the company and can share with you some information for your further consideration. Please do not take anything as an investment advise and contact the company to verify all information.
"CZX’s Cardiac Creek deposit (Akie property) represents one of the top 10 largest undeveloped zinc deposits on the planet. The deposit is very good grade with a very high grade section within it that could be mined first (quicker payback of capital). CZX also has a very large prospective land package – this represents a district scale opportunity in mining friendly BC, Canada. Infrastructure in the area is relatively advanced (full road access, railway, power facility, deep sea port). Neighboring property / deposits owned by big players Teck Resources and Korea Zinc."

Vancouver, B.C. – Wednesday, June 30, 2010 – Canada Zinc Metals Corp. (TSX Venture : CZX) (“Canada Zinc Metals” or the “Company”) is pleased to announce commencement of the 2010 diamond drill program on its Cardiac Creek SEDEX zinc-lead-silver deposit on the Akie property. The property, owned 100% by the Company, is centered approximately 260 kilometers north-northwest of the town of Mackenzie in northeastern British Columbia.

About the 2010 drill program

This program will encompass some 5,000 metres of drilling, yielding NQ/HQ size core, in up to 9 or 10 drill holes, in two areas northwest of the known Cardiac Creek deposit. The objectives of the program are twofold:

To test the permissive Gunsteel Formation – Road River Group stratigraphy present along strike, to the northwest, of the Cardiac Creek deposit for the continuation of this mineralization and;

To further explore the highly prospective North Lead Anomaly, which is underlain by geology similar to that of the Cardiac Creek deposit located some 2.2 km to the southeast. Previous drilling has encountered massive sulphides containing sphalerite and galena (0.8 metres grading 11.6% zinc and 9.05% lead), sulphide replacement (pyrite, sphalerite and galena) of an underlying footwall carbonate debris flow and quartz-carbonate alteration of footwall rocks, all suggestive of proximity to a vent zone.
Rodren Drilling Ltd. of West St. Paul, Manitoba is the drill contractor for this work and will provide two helicopter portable, modified BBS-56 drill rigs and all of the ancillary equipment necessary to complete the program. During the past three drill seasons on the property, Rodren has acquired considerable knowledge and experience (17.3 km drilling/36 holes) and has exhibited a high level of technical and operational competency The two drill rigs are currently setup on the North Lead Anomaly and both started drilling on June 29. “We are very excited to announce that drilling has commenced again on the Akie property,” commented Peeyush Varshney, CEO of Canada Zinc Metals. “A significant program has been planned for this year and we look forward to keeping our shareholders informed of developments. The quality of our projects continues to attract the interest of several large base metal mining companies.”

About the Akie Property

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% zinc, 1.5% lead and 13.0 g/t silver (at a 5% zinc 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 (not 43-101 compliant) grading approximately 10% combined zinc + lead.

In addition to the Akie property, Canada Zinc Metals Corp. controls a large contiguous group of claims which comprise the Kechika Regional project. These claims are underlain by geology identical to that on the Akie property (Cardiac Creek deposit) and Cirque. This project includes the 100% owned Mt. Alcock property, which has yielded a historic drill intercept of 8.8 metres grading 9.3% zinc+lead, numerous zinc-lead-barite occurrences, 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.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.



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