Mineral Resources

A number of historical mineral resource and reserve estimates have been compiled and reported for the Main Zone deposits at Prairie Creek.  It is apparent from consideration of the various resource and reserve statements that they consistently reflect a high grade, lead-zinc-silver-copper vein-type deposit. The most recent 1998 historical resource, calculated by MRDI, has now been superseded by a NI 43-101 compliant mineral resource report.

MineFill Services Inc. has recently completed a mineral resource estimate report dated October 12, 2007 for the Prairie Creek Mine Main Zone mineralization.  Dr. David Stone P.Eng., and Stephen Godden are the principals involved with the MineFill report and are the Qualified Independent Persons for the purposes of National Instrument 43-101. The resources were estimated in accordance to the definitions stated in the Canadian Institute of Mining and Metallurgy and Petroleum “Standards on Mineral Resources and Mineral Reserves” adopted by the CIM Council on November 14, 2000 (CIMM 2000) and qualifies as NI 43-101 compliant.

Resource Estimation Details

The resource estimates relied on underground channel sample, surface drillcore and underground drillcore data collected by the Company since 1992. Only those assays that were deemed verified were used for purposes of resource estimation. To facilitate grade estimation and statistical analysis, drillhole samples were composited from the vein, stratabound and stockwork mineralization. Separate analyses were carried out for silver, copper, lead, zinc and for specific gravity.

The Company provided MineFill with solids that outlined the three types of mineralization (vein, stratabound and stockwork). MineFill verified the solids against the database and found that the solids created were representative of the mineralized zones. Variography was performed on the composite data for the vein mineralized solid. In order to exclude outliers, the maximum composite values used for silver and copper were limited to 1,000 grams per tonne and 2.6 percent, respectively. No other restrictions were placed on the data. Two block models were created in SURPAC, one which encompassed the vein and stockwork solids and a second that encompassed the stratabound solid. Block assay values were computed by the inverse distance to the second power (ID2).

The undiluted, Main Zone resource estimates summarized  in the table above  were classified as Measured, Indicated and Inferred, according to CIMM (2000) resource classification standards:

Resources in the vein were considered Measured when estimation was carried out using an octant search with a maximum of three empty adjacent octants, a range of 30.67 metres (two thirds of the minimum search radius/the search radius for silver, found by variography), a minimum sample count of four and a maximum sample count of 24; Measured resources were not classified in the stockwork mineralized zone due to the assumptions applied in analysis (Indicated and Inferred resources only were defined); resources in the stratabound zone were considered Measured when estimation was carried out using an octant search with a minimum of three empty adjacent octants, a range of 26.85 metres (two thirds of the minimum search radius/the search radius for zinc, found by variography), a minimum sample count of four and a maximum sample count of 24; resources were classified as Indicated when estimation was carried out using an ellipsoidal search with ranges of 47.87 metres for the Main Quartz Vein and stockwork mineralization (two thirds of the maximum search radius/the search radius for lead, found by variography) and 41.01 metres for stratabound mineralization (two thirds of the maximum search radius/the search radius for silver, found by variography), a minimum sample count of two and a maximum sample count of 24; and ellipsoidal searches with a range of 300 metres define the remainder of the available resources as Inferred.

Summary-Main Zone Mineral Resource Estimations (CIMM, 2000)
by Resource Category MineFill September 2007

Mineralization Type	Category	Tonnes	Pb (%)	Zn (%)	Ag (g/t)	Cu (%)
VEIN	Measured	938,624	11.63	13.11	211.89	0.465
	Indicated	2,944,862	12.67	11.16	212.39	0.472
	M + I	3,883,486	12.42	11.63	212.27	0.470
	Inferred	5,516,297	11.46	13.55	215.53	0.516
STRATABOUND	Measured	611,417	6.68	10.85	67.55	-
	Indicated	663,261	5.53	10.15	61.99	-
	M + I	1,274,678	6.08	10.49	64.66	-
	Inferred	21,234	5.65	10.49	55.71	-
VEIN PLUS	Measured	1,550,041	9.68	12.22	155.0	0.282
STRATABOUND	Indicated	3,608,123	11.36	10.97	184.7	0.385
	M + I	5,158,164	10.85	11.35	175.8	0.354
	Inferred	5,537,531	11.44	13.54	214.9	0.514
STOCKWORK	Indicated	682,165	2.68	5.85	50.15	0.112
	Inferred	4,045	2.51	5.54	51.31	0.126
TOTALS	Measured	1,550,041	9.68	12.22	154.95	0.282
	Indicated	4,290,288	9.98	10.16	163.34	0.342
	M + I	5,840,329	9.90	10.71	161.12	0.326
	Inferred	5,541,576	11.43	13.53	214.80	0.514

 

To view the complete Minefill Report please click the following : Technical Report on the Prairie Creek Mine October 12, 2007 or refer to the SEDAR website at www.SEDAR.com, where the MineFill Report has also been filed.

Distribution of Main Quartz Vein Resources, by Resource Classification (looking west, the areas highlighted in light blue are those captured by the 500 m search radius and are not included in resource estimate.)

Distribution of Stratabound Resources, by Resource Classification (looking vertically downwards).

DISCLAIMER

The “resource” grades and tonnages include all intercepts in the specific area and has no blocks removed by a cut off grade.  The estimate includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.  Mineral resources that are not mineral reserves do not have demonstrated economic viability.  There is no certainty that the mineral resources will be converted to mineral reserves.

This estimate is intended to be used exclusively by Canadian Zinc Corporation. Any other use or reliance on this estimate is at the sole risk of the party that so relies. Although Minefill has reviewed most of the data and has made a site visit, these tasks only validate a portion of the entire dataset. Minefill takes no responsibility whatsoever as regards to the accuracy or validity of information contained in previous reports but has instead made the reasonable assumption that the data contained in previous reports is both accurate and valid, which assumption is base on the professional status of the reports’ authors and the nature of the reports.

Cautionary Note to U.S. Investors – The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this website, such as “measured,” “indicated,” and “inferred” “resources,” which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F which may be secured from us, or from the SEC’s website at http://www.sec.gov/edgar.shtml

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