CZX – Canada Zinc Metals drills one of its best holes ever

POSTED ON September 02, 2015 BY James Fraser
CATEGORY Canada Zinc Metals,

Canada Zinc Metals claims map. (Image:Canada Zinc Metals)

Canada Zinc Metals (CZX:TSXV) has released the first two drill holes of the 2015 summer exploration program at the 100% owned Akie project in British Columbia. The focus of the summer drill program was to expand the resource downdip of the current indicated resource and expansion of the robust and high-grade zinc-lead-silver system in the central core of the Cardiac Creek deposit.

Today's drill results have been successful in expanding the resource with intersections of zinc and lead that are actually higher than the current resource estimate at Cardiac Creek, one of the largest undeveloped high grade zinc projects in the world.

Cardiac Creek hosts indicated resource of 12.7 million tonnes grading 8.4 per cent zinc, 1.7 per cent lead and 13.7 g/t silver (at a 5-per-cent-zinc cut-off grade), and an inferred resource of 16.3 million tonnes grading 7.4 per cent zinc, 1.3 per cent lead and 11.6 g/t silver (at a 5-per-cent-zinc cut-off grade).

Drill hole A-15-121 targeted the high-grade core of the Cardiac Creek deposit with the intended pierce point located approximately 75 metres downdip of the high-grade holes A-05-32, A-07-50 and A-07-53. The entire mineralized interval extending from 419.16 to 531.00 metres returned 7.34 per cent combined Zn-Pb and 14.24 g/t Ag over a true width of 64.29 metres. Included in this interval was 17.06% Zn+Pb over 12.98 meters.
Drill hole A-15-122 targeted the lateral strike extents of the high-grade core within the Cardiac Creek deposit with the intended pierce point located between holes A-07-48 and A-08-65, and along strike of A-07-51 with an approximate separation of 75 metres.The Cardiac Creek zone returned 10.31 per cent combined Zn-Pb and 14.64 g/t Ag over a true width of 23.36 metres, including 12.35 metres (true width) grading 13.62 per cent combined Zn-Pb and 17.92 g/t Ag

Drill hole highlights:

Drill Hole	From (m)	To (m)	True Width (m)*	Zn (%)	Pb (%)	Ag (g/t)	Zn+Pb (%)
A-15-121	419.16	531.00	64.29	6.06	1.28	14.24	7.34
including	419.16	483.32	36.89	8.03	1.82	16.38	9.85
including	433.80	483.32	28.51	10.22	2.34	20.45	12.56
including	445.90	482.07	20.84	12.76	2.93	25.01	15.69
including	459.55	482.07	12.98	13.83	3.23	28.98	17.06
FW	493.08	508.48	8.86	8.88	1.36	21.51	10.24
MS	523.06	535.52	7.14	1.98	0.17	11.09	2.15
A-15-122	474.45	519.30	39.16	5.75	1.12	11.16	6.87
including	489.00	515.70	23.36	8.63	1.68	14.64	10.31
including	498.00	512.10	12.35	11.40	2.22	17.92	13.62

Peeyush Varshney, President and CEO of the Company stated, "The results from hole A-15-121 continue to expand the known high-grade mineralisation within the core of the deposit by approximately 70 metres down-dip of the current limits.”

Mr. Varshney continued, “Assays from the first 2 holes of the 2015 exploration drill program continue to confirm our understanding that the high grade core of the deposit continues laterally and at depth. We are excited to report the results from both holes and especially A-15-121 which returned one of the best intercepts ever obtained from drilling on the deposit.”

The share price of Canada Zinc Metals is currently trading near 52 week lows. I personally believe this can be seen as an opportunity for investors.

At these prices CZX is actively buying back shares in the open market as part of a share buyback program.

Investors can expect more drill assays in the coming months. 3 drill holes are currently in the lab and are pending. The drill rig is still turning and is expected to continue for the next couple weeks with 8 holes being the target.

The treasury at Canada Zinc Metals remains healthy with the 2015 program currently on budget. After the drill program CZX with still be left with ~$8 million in the till.

I also believe the zinc market will be the next commodity to enter a bull market due to supply/demand fundamentals. MMG's Century mine is winding down operations and the Lisheen mine in Ireland closes later this year as well.

China remains a wild card regarding zinc production but it will be hard for them to replace the supply of these two mines.

The zinc market is close to hitting a tipping point and when it does highly leveraged names like Canada Zinc Metals could easily benefit.

The company also has a very strong list of shareholders, including: Tongling Nonferrous Metals Group Holdings Co. Ltd. ,Lundin Mining Corporation,Teck Resources Limited, and Korea Zinc Company Ltd.

Read: Canada Zinc Metals Intersects High Grade Zinc Mineralisation Including 17.06% Zn+Pb Over 12.98 Metres In First Hole Of The 2015 Drill Program

Follow Canada Zinc Metals at http://chat.ceo.ca/CZX for coverage from our community and insider trade notifications from SEDI in real-time.

DISCLAIMER: The work included in this publication is based on SEDAR filings, current events, interviews, and corporate press releases. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the CEO.CA website do not necessarily reflect the views of Pacific Website Company Inc., publisher of CEO.CA. Pacific Website Company Inc. provides advertising and multimedia creation services to Canada Zinc Metals which makes CEO.CA biased in its coverage of Canada Zinc Metals. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies such as Canada Zinc Metals can easily lose 100% of their value so read Canada Zinc Metals profile on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.

James Fraser

Mr. Fraser joined CEO.ca in October 2014. He is passionate about the mining industry. His passion led to co-authoring the e-book "Mining Stocks Investor Guide: A Guide to Investing in Mining Companies." He has a finance background and has completed his Canadian Securities Course (CSC) and Conduct and Practices Handbook (CPH). When Fraser is not "digging" up the latest mining stock, he can be found enjoying a wide variety of sports or travelling the world. More →

Twitter: @miningstocks

james@miningstocksguide.com

James Fraser

Twitter: @miningstocks

james@miningstocksguide.com

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