One more junior is coming back to life: Canada Zinc Metals announces very encouraging results from its exploration program with drill results pending. Few weeks ago CZX.v has made a very impressive deal with Teck for exploration on its vast properties around the known Zinc and Lead deposits. Teck has taken a small financing at CAD0.40, which was a double of the market price at that time.
Financial Times reports today that investors are coming back to Zinc Story and it helps to know that Chinese Giant Tongling Non-Ferrous and Lundin Mining are among Canada Zinc main shareholders.
More than 2m tonnes of new supply is needed by 2016. There is a real shortage of quality projects in the pipeline which are anywhere near ready for production
- Daniel Maté, Glencore Xstrata
Canada Zinc Metals Announces Option Deal on Kechika Regional Project - Pie, Cirque East and Yuen Properties
China M&A: Canada Zinc Metals Files Revised NI 43-101 Mineral Resource Estimate Report for the Cardiac Creek Deposit CZX.v, LUN.to Canada Zinc Metals Announces New Discovery of SEDEX Mineralization at Akie East Panel - Positive Channel Sample Results from Sitka Showing
Vancouver, British Columbia CANADA, Oct 23, 2013 (Filing Services Canada via COMTEX) -- Canada Zinc Metals Corp. (CZX - TSX Venture), is pleased to provide an update on the Company's recently completed exploration program conducted on the Akie project and on several of the Kechika Regional properties.
The 2013 exploration program had two main objectives: 4,000 metres of diamond drilling on the Akie property and completion of the airborne Versatile Time Domain EM (VTEM) geophysical survey over the entire Kechika Regional claim package, including the Pie, Yuen and Cirque East properties recently optioned to Teck Resources (see press release dated September 9, 2013).
The Akie property is the Company's flagship exploration project and host to the Cardiac Creek SEDEX Zn-Pb-Ag deposit. The Kechika Regional Project, represented by a series of property blocks including Pie and Mt. Alcock, extends northwest from the Akie property for approximately 140 kilometres covering the highly prospective Gunsteel Formation shale. The southernmost project boundary is located approximately 260 kilometres northwest of the town of Mackenzie, in northeastern British Columbia, Canada.
2013 Exploration Update
The Company is pleased to report the 2013 Exploration Program has been successfully concluded and all field crews and drill equipment have been safely demobilized from the property.
The final hole of a planned nine-hole diamond drill program on the Akie property was recently completed on the SE Zone at its intended target depth. The drill program began with two holes on the West Akie GPS Zone; followed by one hole each on the North Lead and South Zinc Anomalies. Specific targets were tested on the Cardiac Creek deposit with a total of 2,350 metres drilled in four holes.
Approximately 4,855 metres were drilled this season and over 1,350 drill samples were collected including QA/QC samples. The samples have been shipped to Acme Analytical Laboratories in Vancouver, BC, Canada and results are pending. Samples were collected in accordance with accepted industry standards and procedures and routine QA/QC analysis is conducted on all assay results, including the systematic utilization of certified reference materials, blanks and duplicate samples.
Airborne VTEM Survey:
Earlier in the season, the Company completed a comprehensive airborne geophysical survey over the remainder of the Kechika Regional properties using Geotech Ltd.'s Versatile Time-Domain Electromagnetic (VTEM) system. The primary goal of the survey was to obtain lithological and structural information near surface and at depth across the properties, as well as define geophysical responses for Gunsteel shale stratigraphy. A total of 2,795 line kilometres were flown. The final dataset has now been received and is currently being reviewed. An interpretative report is planned for completion in late fall.
The Company had successfully completed 1,526 line kilometres of VTEM coverage over the Akie, Pie and Mt. Alcock properties in 2012. The combined 2012 and 2013 surveys provide complete airborne VTEM coverage over the Company's entire Kechika Trough mineral tenure holdings. This represents a total of 4,321 line kilometres of survey at a nominal line spacing of 200 metres or better, spanning over 140 kilometres of strike length of prospective Gunsteel Formation stratigraphy, the known host to SEDEX Zn-Pb-Ag deposits in the Kechika Trough district.
Several significant new soil anomaly trends have been identified, including a prominent linear silver anomaly downslope of the newly discovered Sitka showing on the Silver Creek grid, and a large multi-element Pb-Ag-Zn-Tl anomaly on the West Akie Grid.
Channel and grab sampling on and along-strike of the Sitka Showing has produced significant grade zinc-lead-silver-barite results indicative of a new SEDEX horizon on the eastern Akie panel. Significant channel assay results to-date from Sitka sampling include 5.1% Zn over 0.7 metres from Channel 1, 1.9% Zn over 0.8 metres from Channel 5, and 0.9% Zn, 1.6% Pb & 4014 ppb Ag over 2.4 metres from Channel 3. Grab samples taken along strike of the main showing returned high grade zinc-lead values including 43.55% Zn and 48.95% Pb. The true width, strike extent and depth dimension of the Sitka showing is unknown due to poor exposure at the location. More detail is provided below.
Peeyush Varshney, President and CEO of Canada Zinc Metals, commented, "This discovery confirms the presence of SEDEX related mineralization at a previously unknown horizon on the East Akie panel. The results are very encouraging given the high grade nature of the zinc-lead mineralization in channel and grab samples and the fact that the mineralization is open in all directions and within favourable stratigraphy. This is an exciting new discovery of SEDEX mineralization of a style known elsewhere in the Kechika Trough."
Targeted ground exploration was also completed earlier in the season, including mapping, prospecting and the collection and analysis of over 2,400 soil samples. Geological mapping and prospecting was completed on several select targets on the Akie property; as well as several promising areas on the Weiss, Kwad and Mt. Alcock properties. A total of approximately 24 km2 of area has been systematically evaluated in the West GPS area and on the Eastern Akie panel.
Soil samples were taken from four separate soil grids on the Akie property (covering an aggregate of 24 km2) and from two soil grids on the Mt. Alcock property (covering an aggregate of 5 km2). All analytical results have now been received.
Earlier in the season, prospecting and mapping discovered the Sitka showing, a vein or fault structure hosting massive barite and abundant coarse grained galena and sphalerite that measures at least 6.0 metres wide at surface. A secondary parallel structure is located 10 metres to the northeast and measures approximately 3.0 metres wide. The showing is located within the East Akie panel and is associated with the thrust contact between the Earn Group shales and the underlying but over-thrusted Silurian Siltstones and Kwadacha Limestone.
Mapping and channel sampling has identified a NW-SE trend to the zone with an apparent NE dip. The mineralization is characterized by massive barite hosting clots or disseminations of coarse grained galena and red brown sphalerite. Locally the structure is brecciated and is associated with barite-quartz +/- carbonate veining especially along its contacts with the host rocks (shale/siltstone). The parallel structure found to the northeast is similar in style and character as the primary structure. Additional soil sampling was completed in the vicinity of the showing to tie into the main soil grid.
Results from the channel sampling have now been received and are outlined in the table below. A total of 23 samples were taken from 7 channels cut perpendicular to the NW-SE trend of the structure. The aggregate length of the channels ranged from 1.3 to 5.1 metres with an average line spacing of about 3.5 metres. Material was sampled from within the barite Zn-Pb sulphide structure as well as the overlying Silurian Siltstone and the underlying black shale of the Earn Group. All samples returned anomalous to highly anomalous Ba and Zn ?Pb ?Ag values indicating mineralization extends beyond the structures themselves into the surrounding host rocks. Significant zinc values included assays ranging from 1.04% to 5.12%. Lead and silver geochemical values were variable ranging up to >10,000 ppm and 9,442 ppb respectively. Lead assays returned values up to 3.72%.---------------- --------- ----------- ----------- ----------------------------Channel Length Zn ppm Pb ppm Including# (m)* Geochem** Geochem** (weighted ave. assays***)---------------- --------- ----------- ----------- ----------------------------Channel 1 1.4 8663 280.7 5.1% Zn over 0.7m---------------- --------- ----------- ----------- ----------------------------Channel 2 1.6 5203 6350 0.6% Zn & 1.8% Pb over 1.0m---------------- --------- ----------- ----------- ----------------------------Channel 3 5.1 7941 2174 0.9% Zn & 1.6% Pb &4014 ppb Ag over 2.4m---------------- --------- ----------- ----------- ----------------------------Channel 4 2.1 1259 1618---------------- --------- ----------- ----------- ----------------------------Channel 5 2.4 7222 144 1.9% Zn over 0.8m---------------- --------- ----------- ----------- ----------------------------Channel 6 1.8 6835 34---------------- --------- ----------- ----------- ----------------------------Channel 7 1.3 4180 19---------------- --------- ----------- ----------- ----------------------------
* Channel sampling intercepts are sample lengths and further work is required
to determine true widths.
** Weighted averages calculated using uncut geochemical results.
***Weighted averages calculated using uncut assays.
In addition to the Sitka sampling, a total of 38 grab samples were taken including 13 samples that exceeded >10,000 ppm zinc and 6 samples that exceeded >10,000 ppm lead (see table below).
These 13 samples were re-run for assay and returned values of Zn and Pb that ranged from 1.6% to 43.55% and 2.2% to 48.95%, respectively. All 13 samples are also anomalous in Ag. These samples were collected either in the immediate vicinity of the Sitka showing or along strike to the south east, at or near the contact between Earn Group shale and the Kwadacha Limestone/Silurian Siltstone, representing a collective strike length of over 2.1 kilometres.
The discovery of SEDEX style mineralization in this locale will provide impetus
for more focused exploration on the largely under-explored eastern half of the Akie property. Results from mapping and surface channel sampling at Sitka are encouraging and the Company is assessing the significance of the data in a regional context to better define potential drill targets.
Silver Creek & South Zinc Grids (Akie)
To better define the South Zinc soil anomaly and evaluate the eastern half of the Akie property, an extensive soil sampling program was executed with over 1,000 samples being collected. The results of this program have clearly defined the boundaries of the South Zinc anomaly, a prominent Zn-Pb soil anomaly measuring 2.25 kilometres long and 600 metres wide. The South Zinc anomaly is located to the southeast of the Cardiac Creek deposit on the eastern side of Silver Creek. The north eastern corner of the anomaly was the target of drill hole A-13-103 (results pending).
The Sitka showing as discussed above is associated with a strong, NW-SE trending open-ended Ag soil anomaly with values consistently exceeding 5,000 ppb and ranging up to 15,765 ppb. This anomaly is situated just below the Gunsteel Formation shale to Silurian siltstone/Kwadacha limestone contact and occurs along a SW facing slope. The anomaly currently measures 1.4 kilometres long and 300 metres wide and appears to be associated with another anomalous Ag trend located 1 kilometre along strike to the southeast. These anomalies are also associated with anomalous values of Zn, Pb, Tl, and Ba. Additional soil sampling, prospecting and mapping will be required to fully evaluate the Sitka showing and the associated soil anomaly.
West Akie Grid
The 2012 VTEM survey over the Akie property identified a well-defined NW-SE oriented EM anomaly along strike of the GPS bedded barite showing. Mapping in 2013 identified Earn Group black shale coincident with the EM trend and soil sampling across this trend has now identified a prominent northwest trending Pb-Tl-Mo ? Zn-Ba-Ag soil anomaly. This soil anomaly roughly measures 1.3 kilometres long by 300 metres wide. The mapped Earn Group black shale represents a continuation of the Western Panel of Earn Group stratigraphy that is host to the GPS bedded barite showing, the West Pie target area and ultimately the Cirque deposit situated approximately 18 kilometres to the northwest. The spatial relationship of the anomaly, oriented perpendicular and located directly to the SW of the Cardiac Creek deposit, is suggestive of a thrust repeat of Cardiac Creek stratigraphy. However, this tentative interpretation will have to be evaluated in context with the recent mapping to determine its significance and potential as a future drill target.
Mt. Alcock Property
A total of 615 soil samples were taken on the NW and SE extensions to the main soil grid to test EM trends identified by the 2012 VTEM survey. The EM trends appear to represent strike extensions of known occurrences of Gunsteel Formation shale. The 2013 sampling expanded the strike extents of the NW-SE trending Pb-Zn soil anomaly that corresponds to the main barite showing originally outlined by historical soil sampling. The anomaly now extends over a distance of 3.25 kilometres with an approximate width of 600 metres. The anomaly is coincident with mapped Gunsteel Formation shale and its central core overlies the massive barite occurrence that has been the focus of limited historical diamond drilling. Along strike to the southeast, a discrete Pb-Zn-Tl soil anomaly that measures approximately 1 kilometre long and 200 metres wide is situated along the edge of one of the EM trends. Mapping in the immediate area was unsuccessful in finding any outcrops of Gunsteel Formation shale due to vegetative cover. This new anomaly will be evaluated in the coming months.
In addition to the soil sampling program, a comprehensive hydrogeochemistry barium sulphate survey was completed on the underexplored area northwest of the Mt. Alcock property including the Weiss and the Kwad properties. Nearly 200 samples were collected from selected primary, secondary and tertiary streams. Colourimetry and trace metal analysis are pending from Acme Analytical Labs of Vancouver, BC. Initial results from field testing have identified several prominent anomalous trends from the Kwad and Weiss properties.
The Akie Zn-Pb-Ag Project
The Akie property is situated within the Kechika Trough, the southernmost area of the regionally extensive Paleozoic Selwyn Basin and one of the most prolific sedimentary basins in the world for the occurrence of SEDEX zinc-lead-silver and stratiform barite deposits.
Drilling on the Akie property by Canada Zinc Metals since 2005 has identified a significant body of baritic-zinc-lead SEDEX mineralization known as the Cardiac Creek deposit. The deposit is hosted by siliceous, carbonaceous, fine grained clastic rocks of the Middle to Late Devonian Gunsteel Formation.
The Company has outlined a NI 43-101 compliant mineral resource at Cardiac Creek, including an indicated resource of 12.7 million tonnes grading 8.4% zinc, 1.7% lead and 13.7 g/t silver (at a 5% zinc cut-off grade) and an inferred resource of 16.3 million tonnes grading 7.4% zinc, 1.3% lead and 11.6 g/t silver (at a 5% zinc cut-off grade).
Ken MacDonald P.Geo., Vice President of Exploration, is the designated Qualified Person as defined by National Instrument 43-101 and is responsible for the technical information contained in this release.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
ON BEHALF OF THE BOARD OF DIRECTORS
CANADA ZINC METALS CORP.
PEEYUSH VARSHNEY, LL.B
CEO & CHAIRMAN
To view the press release as a PDF file, please click on the following link:
Source: Canada Zinc Metals Corp. (CZX - TSX-V)"
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