China, Inflation, Zinc and Lithium with REE: Canada Zinc Metals is in Break out move CZX.v, TNR.v, LUN.to, FCX, F, DAI, FXI, BYD, NSANY, TM, TTM, HUI,

Canada Zinc Metals CZX.v is in a break out move and broke intraday 0.4 CAD to the upside.

"With all summer hot plays in Lithium and REE it is easy to miss a dramatic move in Zinc, which is back above 0.8 USD/lb now. Our Reinflation play Canada Zinc Metals announced today that it is considered itself undervalued by the market and will buy back its shares."

Resource World Magazine picks up the story with recent article - "Canada Zinc Metals Seeking New Kechika Trough Discoveriesan article entitled “Canada Zinc Metals seeking new Kechika Trough discoveries” written by Ellsworth Dickson.
Canada Zinc Metals has announced an initial 43-101 compliant inferred resource estimate for the Cardiac Creek zinc-lead deposit on its 100-per-cent-owned Akie property ( British Columbia , Canada ). At a zinc cut-off grade of 5 per cent, the deposit contains 3.95 billion pounds of zinc, 780 million pounds of lead and 8.95 million ounces of silver. The deposit remains open in all directions.

Canada Zinc Metals also owns an extensive highly prospective Regional Property package (100% owned) in the Kechika Trough which will continue to be the focus of a district scale exploration program."

Its recent investment in Lithium and REE play TNR Gold TNR.v is helping the recent rally: Lithium, Gold and Copper Junior is up to 0.27CAD from 0.2CAD level of CZX.v entry.

" 2. It is an area play with Chinese, TEC Resources and Korea Zinc involved and region shaping into one of the Major Zinc deposits in the world, Canada's locations will add to the value down the road compare to lets say Afghanistan or Africa. Mr Lukas Lundin is back in play in M&A games as well with his Lundin Mining troubles behind him."

New company presentation is here.

Canada Zinc Metals CZX.v: What Chinese know the others don't? CZX.v, LUN.to, HUD.to

Two things are pointing to their thinking:

There is some life outside the US Misery:
Tata Motors (TML) has announced the commercial launch of the Nano keenly awaited across India since it’s unveiling on 10 January 2008.

Surprise, surprise:
Inflation surprises and jumps to 3.2%
"UK inflation defied expectations to rise in February for the first time in five months, triggering another exchange of letters between Mervyn King, governor of the Bank of England, and Alistair Darling, chancellor.
Inflation as measured by the consumer price index rose to 3.2 per cent in the year to last month, up from 3 per cent in January, and still more than 1 percentage point above the Bank’s target rate"

Talking about Canada Zinc Metals CZX.v - Tongling has received Local government approval of investment into company. Things in Beijiging should be moving swiftly as from 1.05.2009 this kind of investments below 100 mil USD will be in a local government prerogative. Company still trades at level 0.2CAD and Chinese are buying 13% at 0.425CAD, Mr Market and they must be reading different newspapers.

Update on Tongling Nonferrous Metals Group Holdings Co. Ltd. $4.9 Million Private Placement
23, 2009
Vancouver, British Columbia, Canada – Canada Zinc Metals Corp. (TSX Venture Exchange: CZX) is pleased to announce that, further to its news release dated January 26, 2009, it has been advised by Tongling Nonferrous Metals Group Holdings Co. Ltd. (“Tongling”) that the State-Owned Assets Supervision and Administration Commission of Anhui, China, has approved Tongling’s application to invest in Canada Zinc Metals. Tongling will now apply for final approval from the Development and Reform Commission.
Canada Zinc Metals has entered into a financing arrangement with Tongling pursuant to which Tongling will purchase units equal to a 13% equity position in Canada Zinc Metals. Tongling has subscribed, by way of a non-brokered private placement, for 11,500,000 units of Canada Zinc Metals at a price of $0.425 per unit for gross proceeds of $4,887,500. Each unit consists of one common share and one half of a common share purchase warrant. Each whole warrant shall entitle the purchaser to purchase, at any time within 24 months from closing, one common share of the Company at a price of $0.60 during the first year and at a price of $0.80 during the second year.
“We are pleased to be acquiring this initial stake in Canada Zinc Metals,” said Mr. Li Dongqing, Chief Engineering Officer of Tongling. “Along with the Akie property, the significant prospective land package in the Kechika Trough represents a potential long-term district development opportunity. We look forward to continuing to build our relationship with the Company.”
Tongling Nonferrous Metals Group Holdings Co. Ltd., based in Tongling, Anhui, is a state-owned holding company, and one of China's largest copper smelting companies. Tongling’s principal activities are exploration, mining, ore processing, smelting & refining and products processing of copper, lead, zinc, gold, silver and other non-ferrous and rare metals.
The financing is subject to receiving the necessary approvals of the relevant Chinese regulatory departments and the TSX Venture Exchange.
About Canada Zinc Metals Corp.
Canada Zinc Metals is a mineral exploration company focused on unlocking the potential of a future long life mining district in British Columbia, Canada. The Company is the dominant land holder in a world class mineral belt called the Kechika Trough which hosts in excess of 80 million tonnes of base metal resources. Canada Zinc Metals owns a total of 78,526 hectares in 233 claims which extend northwestward from the Akie property for a distance of 125 km.
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 filed a NI 43-101 report supporting the estimated 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). The complete NI 43-101 technical report, titled “Geology, Diamond Drilling and Preliminary Resource Estimation, Akie Zinc-Lead-Silver Property, Northeast British Columbia, Canada” and dated May 30, 2008, can be viewed on SEDAR.
Two similar deposits, Cirque and South Cirque, located some 20 km northwest of Akie and owned under a joint venture by Teck Cominco and Korea Zinc, are also hosted by Gunsteel rocks and have a combined geologic inventory in excess of 50 million tonnes.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Reinflation play: Obama, China and Zinc. CZX.v, CDNX, TSX, DXY

Obama is pushing for a new stimulus plan, House has voted for 819 billion US Dollars plan. Idea is to spend its way out of depression. All his infrastructure play will come to the basic supply and demand economic situation. Increasing supply in dollars from one bailout to another and decreasing supply in basic commodities. Mines are closing every week now, projects are put on shelves due to lack of financing. Will it be short sighted as it happen before? We believe so and next play after explosive recent Gold run, will be run in industrial commodities. First time is coming for Silver with its both monetary and industrial investment qualities, second time will be for Dr Copper pronounce that recovery is near. Zinc as a commodity is often overlooked and is not a main stream idea for Inflation play as others. Dull and Dirty, nothing is really exiting about it. This is why we like it now. At around 50 cents per lb we are at the same level as last recessional low in 2003. What could be the next catalyst in order that money will start to flow in Zinc plays? China could come back sooner then everyone is expecting:

Merrill Lynch: China's economy likely to rebound in Q2

Last recession in 2003 Zinc rocketed from 0.5 USD to over 2 dollars per lb in short couple of years. This time mines are hit very hard and closing production reducing the supply. Bailout liquidity is making its way in financial system, Chinese and Russian leaders are blaming West on recent crises and Mr Putin is questioning the status of US Dollar as reserve currency. Very logical in this situation is Chinese quest for resources in order to secure its growth opportunities. They are buying metals into strategic reserves and they started to buy stakes in Juniors. This week announcement by Tongling Nonferrous Metals Group Holdings about strategic partnership with Canada Zinc Metals CZX.v could be groundbreaking in a sense that real industrial money finally finding its way into Canadian junior market. Speculators and Hedge funds hot money left the sector last Autumn and bargains are everywhere if you agree with our Inflation outlook on recent Reflation Efforts over the world. Mr Market's gloomy mode has suppressed the prices of juniors to levels not seen in years, some of them were trading below cash flow value just three weeks ago. It will be justified for some companies without real properties of merit or overburden with debt, but other will prosper with strong management and access to financing. We will continue to monitor the situation in the sector and taking this particular development as confirmation of our view on undervaluation of Juniors with resources in stable political situation.