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Canadian Zinc Corporation is a Toronto listed junior exploration company, trading under the symbol CZN. The company’s main project is the Prairie Creek Zinc/Silver mine in Canada. The Company has recently made the decision to diversify into gold exploration to broaden its portfolio and has acquired an option on the Damoti Lake high Grade Gold project also in Canada. The Company has an experienced management and Board based in Vancouver BC. Canadian Zinc’s long-term aim is to bring the 100 per cent owned Prairie Creek Mine in the Mackenzie Mountains of the Northwest Territories into production at the earliest possible date. The mine, which has a fascinating history, is a base metals property already in the advanced stages of development, with substantial resources of high-grade zinc, lead and silver. Exposures of mineralised vein structures, which overly thicker Stratabound mineralisation, both of which are included in the present resource, are known to occur over a distance of 16 kms through the property. The mine has approximately CDN$ 100 M in infrastructure on site, in the way of a mill, underground development, a tailings dam and other mining plant and equipment, none of which was ever operated. A scoping study completed in 2001 indicates that the mine can cashflow CDN$ 1 million for each 1 cent US the zinc price is over the life of mine breakeven cost of US$0.34 per saleable pound of zinc. Recent drilling outlined a thicker high-grade shoot, which will allow mining in the early years to take advantage of this mineralisation, to significantly reduce the life of mine costs. The trailing average price for zinc over the last twelve years has been in the region of $0.53 cents per pound, with highs up around $0.90 per pound for short periods, making the project an excellent hedge and exposure to the price of zinc. Concurrently, in order to
diversify its commodity and project base, the Company has recently entered
into a joint venture agreement on the high grade Damoti Lake Gold Project
with Doublestar Resources, subject to the completion of detailed due
diligence. Damoti Lake is also in NWT some 500 km east of Prairie Creek and
165 km north of Yellowknife and 14 km south of the past producing 11,000-tpd
Colomac gold mine. The deposit
is gold in Banded Iron Formation, similar to Lupin and the Hope Bay
deposits and was first discovered in 1992.
Since that time, $14 million dollars of work was carried out
by Quest Exploration, including diamond drilling and underground exploration
work, which outlined numerous high-grade gold intercepts over significant
widths. Canadian Zinc proposes to carry out an extensive
exploration program on the site this year, with a view to developing
a significant resource on the site.
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| Canadian Zinc
Corporation Suite 1202, 700 West Pender Street, Vancouver, B.C., Canada V6C 1G8 phone: (604) 688-2001 fax: (604) 688-2043 e-mail: czn@canadianzinc.com toll free: 1-866-688-2001 |