Thursday, April 07, 2011

M&A Watch: Canada Zinc Metals to start work on Cardiac Creek deposit PEA czx.v,, tnr.v,,,,,,,, rio,, tck

  We have very interesting situation here: company moves into Preliminary Economic Assestment of the Cardiak Creek deposit and stock is below than the recent financing at 0.77 CAD. How all situation with Lundin Mining will affect this M&A situation in Canada remains to be seen. Chinese Copper and Zinc giant Tongling already owns 36% of Canada Zinc Metals and Lukas Lundin has its stake in this company via Lundin Mining.

"What do you do when you have lots of dollars which are losing value by the day, hungry for growth population and you need to maintain a tricky status quo? You are going shopping. But not for US Treasuries any more after PIMCO's Bill Gross has dumped all his holdings. And if you happen to be China you are going shopping for Copper or Oil and Lithium will be next on your list after you control Rare Earths market. We have our Catalyst in action now.
Lundin Mining with its stake in Tenke Fungurume can expect proper bids above CAD 10.0. Copper is set on fire in M&A space with this Chinese bid. Destiny of Big Copper project in Argentina - Los Azules and companies involved TNR Gold and Minera Andes will be even more interesting now.
  We have also other companies to watch now in our 
Copper squad: Revett Minerals, Copper Fox Metals, Canada Zinc Metals, NGeX resources, Conerstone Capital Resources, Sunridge Gold and others."

"Go where the growth is - this company is ideally positioned to benefit from Chinese expansion in Infrastructure and Auto sector. We guess that this trip will be dealing with further Akie developments and maybe M&A activity. 

  Zinc and Lead markets are still nowhere near to the Copper excitement about recovery and Reinflation stage of the global economy - it is the good time to consolidate project at this price level of the commodity. Company has issued a news release today on current activities at the Akie project. The stock CZX.v is currently trading below the latest financing at 0.775CAD.
  We hope to get some more news at PDAC this year in the beginning of March in Toronto.

  With its stake in TNR Gold with its Lithium, Rare Earths, Gold and Copper portfolio - Canada Zinc Metals is covering all bets on growth in China and its largest shareholder Chinese Zinc and Copper giant Tongling definitely knows what it means."

Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advise on this blog and there is no solicitation to buy or sell any particular company here. Always consult with your qualified financial adviser before making any investment decisions.

Canada Zinc Metals Reports Further on Current Activities on the Akie Project

April 6, 2011
Vancouver, British Columbia, Canada – Canada Zinc Metals Corp. (TSX Venture Exchange: CZX) is pleased to provide an update on current activities on its 100% owned Akie property, which includes the Cardiac Creek SEDEX zinc-lead-silver deposit. The property is located approximately 260 kilometers north-northwest of the town of Mackenzie in northeastern British Columbia, Canada.

An update to the current Cardiac Creek geological model and inferred resource are well underway along with plans to commence a Preliminary Economic Assessment of the Cardiac Creek deposit which will provide a decision-making tool to advance orderly development. Permits applications have been submitted for multi-year surface drill programs for the Akie property, and for the Pie and Mt. Alcock properties, which make up part of the large Kechika regional claim group. Drill and helicopter tendering is underway with contracts expected to be finalized over the coming month. Final plans regarding the 2011 surface exploration program will be made in the coming weeks, once permits are in hand and drill and helicopter crews are confirmed.

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.

Ken MacDonald P.Geo., Vice President of Exploration, is the designated Qualified Person as defined by National Instrument 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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