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 450 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 undertaken 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 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 was largely 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.

 Highlights of the Metallurgical Research Program

Pre-concentration of the samples by bench scale DMS testing (prior to flotation) was determined to be technically viable for the Lundberg deposit, Bobbys Pond samples and the semi-massive and stringer sulphide sample from the Lemarchant Footwall.

  • Metallurgical test results strongly support the development of a sequential flotation flowsheet for the processing of all five deposits using a centralized processing facility.
  • Bench scale flotation test programs indicated improved grade and recovery relationship for the production of copper, lead and zinc concentrates using a common sequential flotation flowsheet rather than a bulk flotation flowsheet.
  • Test results and METSIMTM metallurgical simulations confirm that selective zinc, lead and copper concentrates at marketable grades can be produced using a sequential flotation flowsheet.
  • The process simulation and cost assessment results (conceptual economic modeling) provided key information on which to base future studies and development plans, including the ongoing exploration programs that are critical to expanding the deposits and advancing the viability of developing the central Newfoundland deposits through a centralized milling facility.

The metallurgical research study demonstrated that the ore from the Company’s Lemarchant and Boomerang-Domino deposits can be successfully processed in a central mill using a sequential flotation flowsheet, and that selective zinc, lead and copper concentrates at marketable grades can be produced from these deposits.