Drilling Intersects 14.54% Zinc + Lead over 8.5 metres in A-11-98 on the Cardiac Creek Deposit.
Canada Zinc Metals has reported recently the number of solid results from its exploration program on Cardiac Creek Deposit. Chinese Copper and Zinc giant Tongling Non Ferrous holds a 36% stake in the company now and Canada Zinc has announced that PEA is ongoing on the project. Another significant shareholder in this emerging M&A story in Canada is Lundin Mining.
2012-01-26 08:56 ET - In the News
The Financial Post reports in its Thursday, Jan. 26, edition that Lundin Mining aims to make an acquisition in 2012 valued at as much as $500-million (U.S.). A Bloomberg dispatch to the Post reports that chief executive officer Paul Conibear says: "We're looking at a few things that are non-public. ... I'd like to do something significant this year." In March, Lundin terminated an agreement to be acquired by Inmet Mining, while defending itself against a hostile bid from Equinox Minerals. Lundin began a process to consider "strategic alternatives" and said in May that offers received for all or part of the company were too low. The Equinox bid ended in April when the Australian company agreed to be acquired by Barrick Gold. Mr. Conibear was Lundin's senior vice-president of corporate development in May when he was appointed to become interim CEO to replace Phil Wright. The CEO appointment was made permanent in late October. Lundin says it will consider copper, zinc and nickel acquisitions in a range of $100-million (U.S.) to $500-million (U.S.). Mr. Conibear says one asset under consideration is family owned. He says, "We're looking off the beaten path."
Canada Zinc Metals is very well positioned now to participate in further consolidation in the industry, number of Zinc mines will be coming off line in the nearest future and the player, who can consolidate and unlock this region with Teck Resources and Korea Zinc holdings involved, will benefit the most.
We have a new report issued on Canada Zinc Metals.
China M&A in Canada: Canada Zinc Metals: Drilling Intersects 10.62% Zinc + Lead over 10.31 metres in A-11-93 on the Cardiac Creek Deposit"Canada Zinc Metals has come out with another great exploration results, deposit has all chances to grow further. Stock was moving Up strongly from the recent lows couple of months ago fueled by this drill program expectations and constant rumours about Chinese consolidation. Chinese giant Tongling Nonferrous holds 36% in the company and the only question left is when they will move to increase their stake. Lundin Mining keeps all its options open with the strategic stake in the company - these two companies can easily make this Canadian region play into one of the largest Zinc and Lead mines in the world. We can talk about the magnitude of 100 million tons Zinc and Lead above 5% grade combined after consolidating the Korea Zinc and Teck Resources J/V property in the region.
In our small interconnected world Canada Zinc Metals holds strategic stake in TNR Gold with its Lithium, Rare Earths and, now - Iron Ore projects. The most intriguing part is Los Azules litigation TNR Gold vs Minera Andes with more than Half of this "Big Copper deposit in Argentina" at stake now. One day, after Canada Zinc Metals acquisition, Chinese Tongling can be knocking together with TNR Gold on the Minera Andes and US Gold door after their merger.
We have a new report issued on Canada Zinc Metals.
Company has announced recently its shares buy back in the market - and it is almost like printing money for us. The latest financing was at 0.75CAD and now the stock is trading at 0.38CAD. Company was also granted an exploration permit for the underground drill works and now this promising deposit will enter in the resource definition stage at a much faster pace.
During this market we are looking for the solid value and the ideal special situations when we have the growing asset and the buyer for it. In case of this company we have both - growing deposit in the very important elephant scale deposit region due to consolidation and Chinese giant Tongling which is holding 36% of the company."
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.
Vancouver, British Columbia, Canada – Monday, January 30, 2012 – Canada Zinc Metals Corp. (TSX Venture Exchange: CZX) is pleased to announce further drill results from the 2011 exploration drill program on the 100% owned Akie Project.
The Akie property, host to the Cardiac Creek SEDEX Zn-Pb-Ag deposit, is located approximately 260 kilometers north-northwest of the town of Mackenzie, in northeastern British Columbia, Canada. The Company also owns the Kechika group of regional properties that extend northwest from the Akie property for 140 kilometers, centered along the prospective stratigraphy of the Gunsteel Formation of Northeastern BC. The 2011 exploration program included a regional program focused principally on 2 southern claim groupings, the Pie and the Mt. Alcock properties.
Diamond drilling on the Akie property commenced in May and lasted approximately 4 months. Work included HQ diamond drilling on several targets across the Akie property, including the SE Extension, Cardiac Creek Zone, the NW Extension and the GPS bedded barite
Cardiac Creek Deposit
A total of 6 drill holes (A-11-92, A-11-93, A-11-95, A-11-96, A-11-98, A-11-99) were completed on the Cardiac Creek deposit. These holes provided infill information both up and down-dip as well as testing the strike extent of the high grade trend along the southeastern edge of the deposit. Step-out drilling was also conducted to the southeast designed to expand the known limits of the deposit.
Canada Zinc Metals has now received assay results from all six of the Cardiac Creek Zone drill holes. This includes the previously reported holes A-11-92, A-11-93, A-11-95 and A-11-96, and new results from A-11-98 and A-11-99.
The pierce point for hole A-11-98 represents an approximate 100 metre step-out along strike from A-08-58 and up-dip from A-06-40 and A-08-66. Highlights include 11.27% Zn+Pb and 14.08 g/t Ag over 12.67 metres, including 14.54% Zn+Pb and 17.01 g/t Ag over 8.5 metres. The results from this hole continue to demonstrate the high-grade continuity of the mineralization along the southeastern margins of the deposit, which remains open for further drilling to the southeast.
The pierce point for hole A-11-99 is located approximately 130 metres down-dip from A-06-41 in an untested area of the deposit. Drilling intersected a very large 60.3 metre interval of Proximal facies transitioning to Cardiac Creek Zone facies style of mineralization. Highlights include 5.08% Zn+Pb and 9.58 g/t Ag over 5.98 metres. The area remains open for further drilling and continued expansion of the deposit at depth.
Highlights from the results of the 2011 Cardiac Creek Zone program, including these two drill holes, are outlined in the table below.
Drilling at the NW Extension followed up on promising proximal facies mineralization encountered in the 2010 drill program, including hole A-10-69 and the newly discovered Nick-style nickel-zinc rich mineralization in hole A-10-72. A five drill hole program (A-11-87 to A-11-91) totaling 1,708.22 metres was completed to test these discoveries.
Results have now been received from the final two drill holes A-11-90 and A-11-91. Drill hole A-11-90, located approximately 400 metres along strike of hole A-10-69, tested the development of Nick–style Ni-Zn mineralization up-dip of the intercept encountered in hole A-10-72. Due to brittle faulting at the projected point of intersection, the Nick horizon was not intersected. However, a significant interval of Proximal facies bedded pyrite mineralization was intersected over 41.1 metres, returning a 22.5 metre interval grading 0.31% Zn which includes samples returning 1.33% and 1.30% zinc. The mineralization and stratigraphy in hole A-11-90 is similar in character to that observed at the North Lead Anomaly and the presence of sub-economic zinc grades within the mineralization is indicative of the wider prospectivity of the target. The North Lead Anomaly remains a high priority for future exploration. While drill holes A-11-87 to A-11-89 tested the strike and up-dip extents of the proximal facies mineralization in the immediate vicinity of A-10-69, A-11-91 tested the down-dip extent. No significant mineralization was intersected at the anticipated target depth. It appears that brittle faulting has displaced the mineralization observed up-dip in the previous drill holes. This drill hole will be analyzed to determine the nature of the faulting present and attempt to calculate the distance that the mineralization has been displaced in order to guide future exploration at depth in this area. The Proximal facies mineralization present at the NW Extension remains open along strike and up-dip. The table below outlines the results for the NW Extension:
About the Akie Property
The Akie zinc-lead property is situated within the southernmost area (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 siliceous, carbonaceous, 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% Zn+Pb.
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% Zn+Pb, 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.
ON BEHALF OF THE BOARD OF DIRECTORS
CANADA ZINC METALS CORP.
PEEYUSH VARSHNEY, LL.B
CEO & CHAIRMAN"