History:
 
Mineralization was discovered at Prairie Creek in 1928 with limited work conducted on the property until 1966. Cadillac Explorations Ltd ("Cadillac") acquired the property in 1966 and, during 1966 to 1969, explored the mineralized zones now known as Zones 3, 7 and 8 through bulldozer trenching and exploratory cross-cuts.

In 1970, the property was optioned to Penarroya Canada Ltd ("Penarroya"). Underground development of Zone 3 was carried out, as well as bulk sampling and preliminary metallurgical test work. Some surface drilling was carried out on Zones 6, 7 and 9. In late 1970, Cadillac terminated the option agreement with Penarroya.

Between 1970 and 1980 extensive underground development of Zone 3 at the 3,050 foot and 2,850 foot levels took place. In 1980, a group led by Nelson Bunker Hunt and William Hunt of Texas agreed to finance the mine into production based on a study completed by Kilborn Engineering (BC) Ltd. Financing negotiations were completed with Procan Exploration Company Ltd., ("Procan") a private company owned by the Hunt brothers. In 1980, Cadillac acquired the 1,200 tons per day Churchill Copper concentrator which was dismantled and transported on the winter road to Prairie Creek.

By May 1982, the surface facilities were 90%-95% completed, and mine preparation work to produce an initial 500 tons per day had been finalized. At that time the silver price collapsed and Cadillac was forced into bankruptcy, after a total of Cdn$64 million had been expended on the Project. The Project, together with all other assets of Procan, were tied up in litigation until 1990.

In 1991 Conwest Exploration Company Limited acquired the property and granted an option to San Andreas to acquire a 60% interest in the property. Since 1991 San Andreas has completed 40,000 metres of surface diamond drilling and an underground exploration program which has greatly expanded the inventory of known resources on the property.

Chart Image

In 1992 the discovery of the stratiform-type mineralization in the main zone opened up multiple exploration targets for both vein and stratiform deposit expansion. In 1993/94 San Andreas, in addition to diamond drilling, also completed initial environmental assessment research and further metallurgical studies. The 1995 drill programme explored for extension of the vein to the north on 200 m step-out sections all of which successfully intersected the vein structure and demonstrated the continuance and strength of the vein which now has a strike length of 2.1 km and remains open at depth and along strike.

In 1996 San Andreas successfully completed the negotiation of The Prairie Creek Development Co-operation Agreement with Nahanni Butte Dene Band. In 1997 San Andreas carried out rehabilitation of the underground workings in order to complete detailed chip sampling of the vein at the 3,050 foot and 2,850 foot underground levels.

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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