Overview

NewfoundlandDuring 2012 an opportunity presented itself and Canadian Zinc added to its mineral portfolio through the acquisition of Paragon Minerals Corporation which was primarily focused in central Newfoundland in highly prospective base and precious metal bearing terrains with the premiere project being the South Tally Pond Project. Subsequently, to further supplement the prospective base metal properties in 2013, Canadian Zinc acquired Messina Minerals Inc and their Tulks South and Long Lake projects.

Canadian Zinc now controls approximately 500 km2 that represents an underexplored mining district with demonstrated potential for high-grade base and precious metal volcanogenic massive sulphide (VMS) deposits. The land package includes three National Instrument 43-101 compliant deposits with excellent potential for expansion that currently total approximately five million tonnes, several historic deposits and numerous untested exploration targets in need of further exploration.

Canadian Zinc’s key properties in central Newfoundland include:

  • South Tally Pond VMS Property (Lemarchant Cu-Pb-Zn-Ag-Au Deposit)
  • Tulks South VMS Property (Boomerang-Domino Cu-Pb-Zn-Ag-Au Deposit, Tulks East Deposit)
  • Long Lake VMS Property (Long Lake Cu-Pb-Zn-Ag-Au Deposit)
  • Victoria Mine and Lake Douglas VMS Properties

Canadian Zinc Property Map - Central Newfoundland (November 2016) (click to enlarge)

 

Compared with other VMS districts in Canada, the central Newfoundland area has not received nearly the same amount of exploration effort.  This is despite hosting the world class Buchan’s deposits and the recently closed (June 2015) Duck Pond Cu-Zn Mine. The potential for additional VMS deposit discoveries in the volcanic belts of central Newfoundland remains high.

Canadian Zinc Newfoundland Deposits with NI-43-101 Resource Estimates:

Deposit  Category  Tonnes Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t) Cut-off
Lemarchant Indicated 1,240,000 5.38 1.19 0.58 59.2 1.01 7.5% ZnEq
Inferred 1,340,000 3.70 0.86 0.41 50.4 1.00 7.5% ZnEq
Boomerang Indicated 1,364,600 7.07 3.00 0.51 110.2 1.66 1% Zn
Inferred 278,100 6.72 2.88 0.44 96.5 1.29 1% Zn
Domino Inferred 411,200 6.30 2.80 0.40 94.0 0.60 1% Zn
Long Lake Indicated 407,000 7.82 1.58 0.97 49.0 0.57 7.0% ZnEq
Inferred 78,000 5.77 1.24 0.70 34.0 0.48 7.0% ZnEq

 

Other nearby deposits with NI-43-101 Resource Estimates:

Deposit  NI 43-101 Category Tonnes Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t) Cut-off
Bobby's Pond Indicated 1,095,000 4.61 0.44 0.86 16.60 0.20 1.1% CuEq
Inferred 1,177,000 3.75 0.27 0.95 10.95 0.06 1.1% CuEq
Daniels Pond Indicated 1,160,000 4.44 2.12 0.31 87.79 0.60 1.5% Zn
Inferred 450,000 3.88 1.74 0.27 81.83 0.52 1.5% Zn
Tulks Hill Indicated 431,000 3.97 1.61 0.89 35.09 1.17 1.1% CuEq
Lundberg Indicated 23,440,000 1.41 0.60 0.35 5.31 0.07 $15US NSR
Inferred 4,310,000 1.29 0.54 0.27 4.47 0.08 $15US NSR

Canadian Zinc and Buchans Minerals Corporation, a wholly owned subsidiary of Minco Plc, have agreed to jointly undertake a research program aimed at investigating the technical and economic viability of developing their respective central Newfoundland Zn-Pb-Cu-Ag-Au deposits through a central milling facility.

The central milling concept is based on the potential that collectively, the central Newfoundland deposits can be econmically mined, pre-concentrated, trucked and then milled, simultaneously or sequentially, through a central mill. As part of the collaboration agreement, both companies have undertaken to complete bench scale dense media separation ("DMS") and metallurgical studies on the deposits.

The collaboration agreement between Canadian Zinc and Buchans Minerals is focused on eight VMS deposits located in central Newfoundland including four deposits held by Canadian Zinc (Lemarchant, Boomerang-Domino, Tulks East and Long Lake).

The program is largely being funded by Research & Development Corporation of Newfoundland and Labrador. The total cost of the research project is estimated at $735,000 with Buchans and Canadian Zinc each contributing up to $100,000.