Canadian Zinc uncovers sulphides

Canadian Zinc (CZN-T) has intersected high-grade zinc, lead and silver at the Prairie Creek mine project in the Northwest Territories.

Assays from 15 of 27 holes indicate minable grades in the defined mineral resource and high-grade results outside the known resource.

Infill drilling resulted in grades as high as 14.8% lead, 23.4% zinc, 740 grams silver and 1.1% copper over 2 metres. Three other holes intersected 8.3-30.4% lead, 1.7-21.6% zinc, 0.1-1% copper and 106-341 grams silver per tonne over widths of 1.6-5.3 metres.

Nine holes targeted vein-system mineralization. The highest grade was cut in two of these holes: one intersected 1.1 metres of 16.5% lead, 21.6% zinc, 0.7% copper and 255 grams silver, while the other hit 0.7 metre of 21% lead, 30% zinc, 0.9% copper and 369 grams silver at a down-hole depth of 105 metres and, farther down-hole, 3.8 metres of 4% lead, 3.6% zinc and 38 grams silver.

Three holes intersected the structure but contained minimal grades.

Three holes targeted stratabound mineralization. Two of the holes intersected massive-to-semi-massive pyrite with 2.3-6.6% zinc, 2.1-6.6% lead, 0.04-0.25% copper and 2-110 grams silver over 1-5 metres. One hole hit pyrite without any additional sulphide.

In 1998, the measured and indicated resource of the Prairie Creek deposits was pegged at 3.57 million tonnes grading 11.8% zinc, 9.7% lead, 0.3% copper and 141 grams silver. An additional 8.28 million tonnes grading 12.8% zinc, 10.3% lead, 169.2 grams silver and 0.4% copper are inferred.

The property boasts a nearly complete mine, mill and surrounding infrastructure. The surface facilities were almost complete and production was set to begin in 1982 when a collapse in silver prices caused the owner at the time to declare bankruptcy.

Canadian Zinc hopes to apply for the land-use permit and water licence required to operate the mine later this year. It has had its water licence and land-use permits held up in the past as a result of environmental concerns, though it is working to resolve the issues.

The mine site borders Prairie Creek, in the South Nahanni watershed. The creek runs for 32 km before crossing the boundary of the Nahanni National Park Reserve, and flows for a further 16 km before entering the South Nahanni River.