Norzinc Ltd. (NORZF)

[Pro-Life]

We'll see what the second half holds...

[Pro-Life]

But most of 2013 has been unkind at best...

[NYBob]

Canadian Zinc receives first operating permit for Prairie Creek mine -



By: Idéle Esterhuizen
28th January 2013
TEXT SIZE
JOHANNESURG (miningweekly.com) – The Mackenzie Valley Land and Water board has issued Canadian Zinc Corporation a land-use permit for the establishment and operation of the winter road that would service the Prairie Creek zinc/lead/silver mine.

The land-use permit was issued for a period of five years, starting January 10, and permitted the construction, maintenance, operation and use of the winter road connecting the Prairie Creek mine to the Liard highway. The permit allowed the outbound transportation of the zinc and lead concentrates to be produced at the mine and the inbound transportation of fuel and other supplies.

The permit also incorporated realignment of the original route, which would improve access and further reduce the potential environmental impact.

The board further issued Canadian Zinc a Type B water licence that was also valid for a period of seven years starting January 10 and which permitted the limited use of water and the disposal of waste for road construction, maintenance and operational activities.

Canadian Zinc indicated that the new permits upgraded the use and permitted activities in support of the operation of the Prairie Creek mine, which would enable the start of initial construction work on the road prior to the finalisation and issue of the main mine operating permits and Class A water licence in the final permitting stages.
Edited by: Chanel de Bruyn

http://www.miningweekly.com/article/canadian-zinc-receives-first-operating-permit-for-prairie-creek-mine-2013-01-28

http://www.canadianzinc.com
God Bless

[Pro-Life]

A thing of beauty since Christmas...

[Pro-Life]

No December news but a good year-end push:

http://americanbulls.com/StockPage.asp?CompanyTicker=CZICF&MarketTicker=OTC&TYP=S

[Pro-Life]

-5.19% results for the week... unreal prices... rock bottom.

[Pro-Life]

I think the bottom is in just like the sector...

[Pro-Life]

Financials release:

http://www.canadianzinc.com/images/Docs/Financials/CZN20121115NR.pdf

[Pro-Life]

And then CZN.TO drops even further into buy territory on a day gold is jumping bigly... thanks peeps!!!

[NYBob]

Canadian Zinc Acquires Paragon Minerals Corporation

http://tmx.quotemedia.com/article.php?newsid=54514074&qm_symbol=CZN











VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 24, 2012) -

Canadian Zinc Corporation
(TSX:CZN)(OTCQB:CZICF) (the "Company" or "Canadian Zinc") and Paragon Minerals Corporation (TSX VENTURE:PGR) ("Paragon") are pleased to announce that they have successfully completed the plan of arrangement (the "Arrangement") announced on July 31, 2012 whereby Canadian Zinc has acquired all of the issued and outstanding common shares in the capital of Paragon that it did not already own. The Arrangement was approved by Paragon shareholders on September 17, 2012 and approved by the Supreme Court of British Columbia on September 20, 2012.

Pursuant to the terms of the Arrangement, shareholders of Paragon (other than Canadian Zinc) will receive 0.136 common shares in the capital of Canadian Zinc for each Paragon share held. Details of the Arrangement are in the Paragon Management Information Circular dated August 17, 2012, which can be found on SEDAR at www.sedar.com.

John Kearney, Chairman and Chief Executive Officer of Canadian Zinc, commented, "We would like to welcome our new shareholders from Paragon and thank them for their strong support of this transaction. The combined company is well positioned to expand the current VMS resource and advance the South Tally Pond Project through further exploration and feasibility studies, and together our shareholders will benefit from building an emerging zinc producing company an enhanced capital markets profile of the combined company."

With the completion of the Arrangement, the Paragon shares are expected to cease trading on the TSX Venture Exchange on or about the close of business on September 24, 2012.

Exchange of Paragon Shares

As a result of the acquisition, Canadian Zinc will issue 7,296,298 shares of Canadian Zinc for 53,649,254 common shares of Paragon currently outstanding. All currently outstanding share purchase warrants and options of Paragon will be exercisable to acquire common shares of Canadian Zinc at the same exchange ratio. Canadian Zinc and Paragon shareholders will own approximately 95.5% and 4.5% of the combined company, respectively.

For Paragon shareholders who hold their Paragon shares through a broker, the exchange of Paragon shares for Canadian Zinc shares will be processed through their broker. For shareholders who hold their Paragon shares in registered form, the shares will be processed after they deposit their share certificates, along with a duly completed Letter of Transmittal, with Computershare Trust Company of Canada ("Computershare"), the depositary for the transaction, in accordance with the instructions in the Letter of Transmittal.

Any questions regarding exchange of shares, including any request for another form of Letter of Transmittal, should be directed to your broker if applicable or to Computershare via telephone at 1-800-564-6253 or via email at [e-mail].

South Tally Pond Property

Paragon's flagship project is its 100% interest in the South Tally Pond Property, which includes the Lemarchant deposit, and is located in a proven mining district near Buchans, Newfoundland. The South Tally Pond Property covers 261 km2 and is immediately adjacent to Teck Resources Limited's Duck Pond Cu-Zn mine and mill complex. The Lemarchant deposit is a significant precious metal-rich, copper-lead-zinc Volcanogenic Massive Sulphide ("VMS") discovery with a potential opportunity to develop into a viable economic resource. An initial NI 43-101 mineral resource estimate that was recently completed on the Lemarchant deposit includes the following defined mineral resources:

Indicated resource estimate: 1.24 million tonnes at an average grade of 5.38% Zn, 0.58% Cu, 1.19% Pb, 1.01 g/t Au and 59.17 g/t Ag; and

Inferred resource estimate: 1.34 million tonnes at an average grade of 3.70% Zn, 0.41% Cu, 0.86% Pb, 1.00 g/t Au and 50.41 g/t Ag.

(See Paragon's Technical Report and Mineral Resource Estimate on Lemarchant Deposit, South Tally Pond VMS Project, Central Newfoundland, dated March 2, 2012, filed on SEDAR.)

The Lemarchant deposit has been defined to a 210 m depth and remains open along strike and at depth. The exploration potential outside of the Lemarchant area of the South Tally Pond Property is still relatively untapped with numerous priority VMS targets that have seen limited or no drilling. Paragon is also exploring an excellent portfolio of gold properties through partner-funded and company-funded exploration programs.

The South Tally Pond Technical Report recommended pursuing a two-phased work program to further define the nature and extent of the Lemarchant deposit. The first phase includes the drilling of four target areas proximal to the Lemarchant deposit. Canadian Zinc is currently evaluating the proposed program before initiating further exploration on the project.

About Canadian Zinc Corporation

Canadian Zinc is a Toronto-listed exploration and development company. The company's main project is the 100%-owned Prairie Creek zinc, silver and lead project located in the Northwest Territories, Canada. The Prairie Creek Project contains 5.4 million tonnes of Measured and Indicated resources with an average grade 10.8% Zn, 10.2% Pb, 0.31% Cu and 160 g/t Ag as well as 6.2 million tonnes of Inferred resources with an average grade of 14.5% Zn, 11.5% Pb, 0.57% Cu and 229 g/t Ag. (AMC Mining Consultants (Canada) Ltd. J M Shannon and D Nussipakynova, Qualified Persons, June 2012).

A portion of the Mineral Resources was converted to a Mineral Reserve estimate of 5.2 million tonnes grading 9.4% zinc, 9.5% lead and 151 g/t silver. A Pre-Feasibility study completed by SNC Lavalin for Canadian Zinc in June 2012 indicates a pre-tax net present value ("NPV") of $253 million using an 8% discount, with an internal rate of return ("IRR") of 40.4% and payback period of 3 years based on long-term metal price projections of $1.00/lb zinc, $1.00/lb lead and $26.00/oz silver.

ON BEHALF OF THE BOARD OF ON BEHALF OF THE BOARD OF
CANDIAN ZINC CORPORATION PARAGON MINERALS CORPORATION
"John F. Kearney" "Michael J. Vande Guchte"
Chairman & President President & CEO, Director
Risk and Uncertainties

The Company's business and results of operations are subject to numerous risks and uncertainties, many of which are beyond its ability to control or predict. Because of these risks and uncertainties, actual results may differ materially from those expressed or implied by forward looking statements, and investors are cautioned not to place undue reliance on such statements, which speak only as of the date hereof.

Investors are advised to review the discussion of risk factors associated with the Company's business set out in the Company's Annual Information Form for the year ended December 31, 2011, which has been filed with the Canadian Securities Regulators on SEDAR (www.sedar.com). The risks and uncertainties, as summarized in the Company's MD&A and in other Canadian and U.S. filings, are not the only risks facing the Company. Additional risks and uncertainties not currently known to the Company, or that are currently deemed to be immaterial, also may materially adversely affect the Company's business, financial condition and/or operating results.

Alan Taylor, P.Geo., Chief Operating Officer, Vice President Exploration and a Director of Canadian Zinc Corporation, is responsible for the Company's exploration program, and is a Non-Independent Qualified Person for the purposes of National Instrument 43-101 and has approved this press release.

Cautionary Statement - Forward-Looking Information

This press release contains certain forward-looking information. This forward looking information includes, or may be based upon, estimates, forecasts, and statements as to management's expectations with respect to, among other things, the issue of permits, the size and quality of the Company's mineral reserves and resources, future trends for the Company, progress in development of mineral properties, the timing of exploration, development and mining activities, completion of financings and the merger, capital costs, mine production costs, demand and market outlook for metals, future metal prices and treatment and refining charges, the financial results of the company and future gold production and profitability of Vatukoula Gold Mines in which the Company has a significant shareholding. There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company does not currently hold a permit for the operation of the Prairie Creek Mine. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that mineral resources will be converted into mineral reserves.

Cautionary Note to United States Investors

The United States Securities and Exchange Commission ("SEC") permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 40-F which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml.

Back

[Pro-Life]

Merger with Paragon... the market likes it +5.26% today.

[Pro-Life]

Anything under 40¢ should be a great buy... time will tell.

[Pro-Life]

A good looking double bottom on the weekly chart...

[NYBob]

Canadian Zinc Reports Financial Results for First Quarter 2012
Continued progress on Prairie Creek Project
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 16, 2012) -

Canadian Zinc Corporation
(TSX:CZN)(OTCQB:CZICF) (the "Company", "Canadian Zinc" or "CZN")
announces its financial results for the three month period ended
March 31, 2012.

http://tmx.quotemedia.com/article.php?newsid=51307524&qm_symbol=CZN

[Pro-Life]

Zinc to be the next ‘big base metal play' - Scotiabank's Mohr

http://www.mineweb.com/mineweb/view/mineweb/en/page36?oid=148391&sn=Detail&pid=102055

Scotiabank says a strong rebound in U.S. auto assemblies is likely to support base metal premiums in the country

by Dorothy Kosich
Thursday , 29 Mar 2012

Scotiabank economist, Patricia Mohr, predicted that zinc will become the "big base metal play," as a strong rebound in U.S. auto assemblies supports base metal premiums in the U.S.

In the March 27th edition of the Scotiabank Commodity Price Index, Mohr observed, "A strong rally in base metal prices and firmer gold led the Metal & Minerals Index higher in February."

"LME copper prices spiked to US$3.93 per pound last month-leading other base metals higher-as some of the late-2011 gloom on the global economic outlook lifted," she said. "Sentiment has improved alongside firmer U.S. economic indicators on employment, consumer confidence and auto assemblies and economic monetary policy."

Although Mohr noted copper prices retreated, "we remain optimistic that China will achieve a ‘soft landing' with GDP growth of 8.6% in 2012 and 8.9% in 2013."

In her analysis, Mohr observed that spot potash prices eased from US$500 per tonne in January to US$495 in February, "but remained well above US$393 a year ago."

Meanwhile, the Indian government, under budgetary constraints, has cut the potash subsidiary from $327 per tonne for 2011-12 to $294 for 2012-13. "These developments have triggered temporary production cuts by Potash Corp and Mosaic in Western Canada to bring supply into line with lower demand," said Mohr.

However, Mohr observed that Canpotex and the Belarusian Potash Company have just agreed on new contracts with Chinese buyers for the second quarter of 2012 at US$470 per tonne cfr, unchanged from a year ago.

"The recent rebound in soybean, canola and palm oil prices in Malaysia/Indonesia and ongoing strength in corn prices-all requiring large amounts of potash per hectare planted-has improved farm economics and bodes well for solid fertilizer application in North America, Southeast Asia and Brazil, as 2012 unfolds," she said.

In her analysis, Mohr observed that LME zinc prices rose from 90-cents per pound to 03-cents in February, before dropping to a still lucrative 90-cents in late March.

"Zinc may represent the next big base metal play," Mohr advised. "Zinc will shift into ‘deficit' (at latest by 2014) due to ongoing demand growth in the face of significant global mine depletion in mid-decade."

"In 2013, the closure of the Brunswick mine in Canada, Century in Australia and Vedanta's Lisheen mine in Ireland will shift sentiment towards zinc, with prices rallying in anticipation of tightening supplies," she forecast. "In the second half of this decade, zinc demand will be boosted by a recovery in G7 construction activity, particularly in the USA, China could start to use more galvanized steel in the underbody of a car."

"A merged Glencore/Xstrata would be the largest zinc mining company in the world, with a huge 25% share of world mine output (outside China)," Mohr added,

In the meantime, base metals premiums over LME cash in the U.S. Midwest are also firm, Mohr observed, with the ‘Platts U.S. aluminum premium' hitting a 10-month high of $8.75 cents per pound in mid-March. "Aside from lengthy delays in getting metal out of the LME warehouse in Detroit and lucrative warehousing deals, this strength likely reflects a significant recovery in U.S. auto assemblies, scheduled to reach 10.5 million units in 2012:Q2-a level not seen since mid-2007. Consumers and business are replacing an aging fleet, with the average age of vehicles on U.S. roads now at a record of nearly 11 years, up from a normal 9."

Mohr noted that spot uranium prices remain at a low ebb of US$51 per pound and base term-contract prices are US$60. "On a more positive note, China has completed drafting its new nuclear safety guidelines, spurred by the Fukushima-Daiichi event in Japan," she said. "This should allow a resumption of the approval process and actual construction of new projects this year. China has 15 nuclear reactors in operation and is in the process of building at least 25, with 50 more planned."

[NYBob]

CANADIAN ZINC CLOSES $4 MILLION SECOND TRANCHE OF ZHONGRUN PRIVATE PLACEMENT -
PRAIRIE CREEK PERMITTING PROCESS UNDERWAY
Vancouver, British Columbia, February 10, 2012 –

Canadian Zinc Corporation -

http://www.canadianzinc.com/docs/NR021012.pdf

(TSX: CZN; OTCQB: CZICF) (the “Company” or “Canadian Zinc”) is pleased to announce that, following
receipt of regulatory approval, it has closed the second and final tranche of the previously
announced non-brokered private placement with Zhongrun International Mining Co. Ltd.,
consisting of an additional 6,000,000 units (“Units”) at $0.67 per Unit for gross proceeds of
$4,020,000.

On December 30, 2011, Canadian Zinc closed the first tranche of the Zhongrun private
placement of 9,000,000 units at $0.67 per unit for gross proceeds of $6,030,000.
Each Unit consists of one common share and one-half of one common share purchase warrant.
Each whole warrant will entitle the holder to purchase one common share of the Company at an
exercise price of $0.90 per common share for a period of 24 months from the date of issuance.

In connection with the Zhongrun financings the Company paid a finder’s fee of $502,500 to an
arm’s length intermediary.

Closing of the second tranche of the Zhongrun financing brings the total gross proceeds raised
from the recent financings to $17.6 million.

On December 30, 2011, Canadian Zinc closed a
private placement of 3,275,000 flow-through shares at $0.75 per share for gross proceeds of
$2,456,250 and on January 6, 2012 Canadian Zinc closed a bought deal public offering of
7,610,000 units at $0.67 per unit for gross proceeds of $5,098,700.

Permitting Process Underway at Mackenzie Valley Land and Water Board
On December 8, 2011, the Mackenzie Valley Environmental Impact Review Board (“Review
Board”) issued its Report of Environmental Assessment and Reasons for Decision for the
Company’s proposed Prairie Creek Mine and submitted the Report and Decision to the Federal
Minister of Aboriginal Affairs and Northern Development.

The Review Board concluded that the
proposed development of the Prairie Creek Mine is not likely to have any significant adverse
impacts on the environment or to be a cause for significant public concern.

The Review Board
concluded that an environmental impact review of this proposed development is not necessary
and that the Prairie Creek Mine project should proceed to the regulatory phase for approvals by
the Mackenzie Valley Land and Water Board (“Water Board”). 2
The Company has been advised by the Water Board that

http://www.canadianzinc.com/content/investor/news.php



http://www.canadianzinc.com/

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=71991340

[Pro-Life]

Scoreboard for the week: +3.33%

[Pro-Life]

An environmental impact assesment is not necessary... QUITE positive in my view!!!

[BaderBob]

Green light for CZICF

http://reviewboard.ca/upload/project_document/EA0809-002_Report_of_Environmental_Assessment_and_Reasons_for_Decision_1323385214.PDF

[Pro-Life]

A strong down trend channel is still in effect...

[Pro-Life]

The price has tumbled through every major moving average.

[NYBob]

FEDERAL GOVERNMENT PROVIDES $3 MILLION FUNDING TO ASSIST IN TRAINING
ABORIGINAL EMPLOYEES AT CANADIAN ZINC’S PRAIRIE CREEK MINE -

http://www.canadianzinc.com/docs/NR082911R_website.pdf
God Bless

[Pro-Life]

How close to right was that observation??? LOL!

[Pro-Life]

Canadian Zinc and Northwest Territories Sign Agreement for Prairie Creek Mine
Monday August 22, 2011 3:35PM

http://www.kitco.com/reports/KitcoNews20110822_MM.html

The Government of Canada’s Northwest Territories and Canadian Zinc have signed a socio-economic agreement to develop Canadian Zinc's Prairie Creek silver/zinc/lead mine in the region. The Prairie Creek Socio-Economic Agreement was signed today in a formal signing ceremony at the Legislative Assembly in Yellowknife says a release from Canadian Zinc. "The signing of this Agreement reflects the commitment of both parties to ensure that the development of northern resources occurs in a manner that is sensitive to social and cultural considerations and is economically sustainable," says Minister of Industry, Tourism and Investment, Bob McLeod. Since acquiring the property in the 1990s, Canadian Zinc has invested over $45 million, quadrupling the known mineral resources. The mineral resource at the Prairie Creek Property comprises total Measured and Indicated Resources of 5,840,329 tonnes grading 10.71% zinc, 9.90% lead, 0.326% copper, and 161 grams silver per tonne.

By Daniela Cambone of Kitco News [e-mail]

[Pro-Life]

This has now closed below every notable average... must be a buying opportunity.

[Pro-Life]

Excellent reversal candle on Friday but down 1.22% for the week...

[Pro-Life]

-8.73% is the scorecard for the week...

[NYBob]

CZN Chart TI P&F TA Alert bullish price objective $4.48 per share -




Canadian Zinc Corporation -


The Hunt brothers dream - Silver Mine -

http://www.canadianzinc.com/content/investor/press/western-standard.php

Video Gallery

http://www.canadianzinc.com/content/gallery/video/

http://www.canadianzinc.com

Ag & Au most often follow each other Higher



GOLD chart TA TI P&F Bullish Price 1st Target Obj $1714.48 per ounce




Mining News: Prairie Creek inches toward production

Two decades after undertaking development of the NWT underground mine, tenacious Canadian Zinc may yet have a ways to go

Rose Ragsdale

For Mining News

All bets are off, but prospects for the project most likely to succeed in becoming the next producing mine in Northwest Territories got a boost recently when its developer commissioned a new feasibility study.

Canadian Zinc Corp. in February reported engaging SNC-Lavalin Inc. to complete the feasibility study in 2011 for the underground Prairie Creek Project, a longstanding mining venture where it hopes to capitalize on several decades of development work to produce lead and zinc concentrates and a silver-bearing copper concentrate.

The project is located in an environmentally sensitive remote area in the Mackenzie Mountains of southwestern Northwest Territories, within the watershed of the South Nahanni River and in proximity to, but outside, the Nahanni National Park Reserve. The Government of Canada expanded the Nahanni National Park Reserve in June 2009 to completely surround the Prairie Creek Mine, however federal officials have assured Canadian Zinc of its third-party rights to operate and access the Prairie Creek Mine. The mine is also located in an area which is claimed by the DehCho First Nations as their traditional territory. No land claim settlement agreement has been reached between Canada and the DehCho.

Mineralization was discovered in Prairie Creek in 1928, but the property attracted only limited exploration until 1966. The Prairie Creek mineral deposit hosts nearly 6 million metric tons of measured and indicated resources grading 10.71 percent zinc, 9.90 percent lead, 0.326 percent copper and 161.12 grams per metric ton silver, along with 5.54Mt inferred resources grading 13.53 percent zinc, 11.43 percent lead, 0.514 percent copper and 215 g/t silver and additional exploration potential, according to a 2007 independent estimate which is the most recent available.

Unique opportunity
The Prairie Creek Mine project is considered unique because its environmental footprint is virtually complete. The project came within three months of production startup in 1982 before silver prices declined and the original developer, Cadillac Explorations Ltd., was placed into receivership after a spending a total of C$64 million on the project.

Since then, improvements proposed for specific site facilities have been aimed at further mitigating any potential impact the project may have on the environment. For example, filtered mill tailings will be disposed as underground backfill instead of on the surface.

The mine, mill and camp was issued a land use permit in 1980 and subsequently a water license in 1982.

Much of the mine site’s current infrastructure, which includes a nearly complete 1,000-metric-tons-per-day mill concentrator, a two-story administration building, workshops, three levels of underground development, accommodations and fuel storage facilities, was held in care and maintenance until 1990.

In 1991, Canadian Zinc (then San Andreas Resources Corp.) negotiated an option to acquire an interest in the Prairie Creek property, and 20 years later, the would-be mine developer may be finally closing in on first production.

Canadian Zinc said existing infrastructure at the mine site is an important aspect of the project and, while requiring some upgrades, it will substantially reduce what would otherwise be the capital cost of putting the deposit into production. Planned new facilities will include a kitchen/accommodation block, concentrate shed, fuel-efficient low-emission power generation units, and an incinerator.

The company holds a water license and a land use permit for underground exploration and development and operation of a pilot plant, and land use permits for surface exploration. These permits were issued after environmental assessments were carried out by the Mackenzie Valley Environmental Impact Review Board. Through these assessments, the site and existing facilities have been extensively studied and reviewed, and relevant permits issued. A number of plans and structures have already been developed and been reviewed and approved by the Mackenzie Valley Land and Water Board. Those will form a major part of the proposed development, including mine water contingency and spill contingency plans, a certified tank farm and a polishing pond.

The company also holds permits for a winter road to access the mine site from the Liard Highway.

Prairie Creek’s current estimated measured and indicated resources are capable of supporting a mine life of more than 14 years at an initial production rate of 600 tons per dsy, which would increase to 1,200 tpd. In addition, future inclusion of the inferred resources is expected to extend the mine’s life to at least 20 years.

Canadian Zinc said about 220 permanent workers will be needed at the mine, half of whom would be on-site at any one time. Personnel will generally work a three weeks on, three weeks off schedule (with variations as required). Area nonresident personnel will be flown in on charter flights from regional centers, while local personnel will be flown in from the communities of Nahanni Butte, Fort Liard and Fort Simpson.

The company said it is targeting a 35 percent northern work force, with a minimum 15 percent of its employees being members of First Nations. It also plans to offer training programs to fill mine positions.

2010 activities
Work at the Prairie Creek mine site during the summer of 2010 included continuing care and maintenance, environmental monitoring programs, road construction and repair, and a diamond drill exploration program. Canadian Zinc spent a total of C$4.2 million, compared with C$2.3 million in 2009.

In 2,700 meters of deep drilling, the company also confirmed the presence of the host Whittaker geological formation at the projected horizon, about 4 kilometers, or 2.5 miles, north of the Prairie Creek Mine portal, and the potential vein target that is projected to lie at a down-hole depth of about 1,500 meters.

Further repair work to the existing mine access road was completed, and a new 8-kilometer-, or 5-mile-, long access road to the new drill pad at Casket Creek was constructed.

In August a perimeter land survey was completed on the Gate mineral claims resulting in an adjusted total surface area for the new Gate mining leases of 2,776 hectares, or 6,860 acres. The Gate claims contain similar geology to that of the Prairie Creek mine and grassroots exploration developed new base metal targets, some of which still remain under-explored. The proximity of these claims to the Prairie Creek Mine, and the similarities in geology, justified upgrading the mineral tenure of these claims to long-term mining leases that expire in September 2030.

The Prairie Creek land package, including mining claims, mining leases and surface leases, now totals 8,218 hectares, or 20,299 acres.

Canadian Zinc also undertook the removal, by airlift, of all PCB (polychlorinated biphenyls) contaminated material that has been stored in a dedicated safe facility on site since 1982. This follows a similar program that removed all old cyanide from the site in 2008. The company contracted Hazco Environmental Services to repackage, remove and transport the PCB material off-site to be disposed of, by incineration, at the certified Earth Tech Swan Hills disposal facilities in Northern Alberta.

Canadian Zinc also continued discussions and engagement with the local communities of Nahanni Butte Dene Band and Liidlii Kue First Nation (Fort Simpson) with whom it has entered into a memoranda of understanding to establish mutually beneficial, cooperative and productive relationships. The company has agreed to use its best efforts to employ community members on a first preference basis and to assist the communities to benefit from business opportunities associated with the Prairie Creek Project.

On Jan. 20, Canadian Zinc signed the Nah’a Dehe Dene Prairie Creek Agreement, which provides for an ongoing working relationship between Canadian Zinc Corp. and the Nah’a Dehe Dene Band (Nahanni Butte Dene Band). The agreement provides a framework such that training, employment and business contracts are made available to Nahanni to the mutual benefit of both parties.

Comprehensive technical studies
Over the years, a substantial amount of technical data has been accumulated on the project, dating back to the 1970s and the subsequent completion of the original Prairie Creek Definitive Feasibility Study by a former subsidiary of SNC-Lavalin in 1980. Numerous other technical and economic studies have been carried out since, while exploration of the property continued.

During the past two years, Vancouver-based SNC has assisted Canadian Zinc with various aspects of project planning and design as part of the ongoing environmental assessment process. SNC, which is celebrating 100 years in business in 2011, also has experience in designing and constructing other mine projects in the Far North: Rio Tinto and Harry Winston’s Diavik diamond mine and Newmont Gold Corp.’s Hope Bay Davis North gold project (Nunavut).

The general scope of the feasibility study will include detailed engineering and design including mining equipment, on-site and off-site infrastructure, transportation and logistics, a construction schedule and execution plan and capital and operating cost estimates.

Key aspects of the mine’s design will be integrated into the new feasibility study with the help of subcontractors, including: DRA Americas – DMS (Dense Media Separation) plant design; Mine Paste Engineering Ltd. – paste plant design; Golder & Associates – site facilities and water treatment design; and SGS Lakefield Research Ltd. – metallurgy and processing.

More permitting ahead
The project is currently in the advanced stages of environmental assessment by the environmental review board. It is expected that public hearings will be held in April or May and that the EA process for the Prairie Creek Mine will be completed in mid-2011.

A further regulatory stage managed by the territory’s land and water board (with input from territorial and federal agencies) will follow the EA before permits are issued. These permits will likely include conditions recommended as a result of the EA, the company said.

With the environmental assessment nearing completion, Canadian Zinc said major operational parameters that will factor into the project’s implementation are now being determined and now is the time to evaluate the project’s capital costs and financial analysis through the completion of the feasibility study, in anticipation of arranging construction and working capital financing.

The company also told federal securities regulators in a March 16 filing that since 2001, it has successfully obtained seven permits for the exploration and development of the Prairie Creek property from the territory’s land and water board, including two type “B” water licenses, four land use permits for exploration activities and underground development and a winter road permit. In addition, various aspects of the Prairie Creek project have been the subject of five previous EAs carried out by environmental review board, all of which resulted in recommendations that the relevant project be allowed to proceed.

Although it has experienced long delays in obtaining permits, and expects a continued lengthy process with its permitting activities, Canadian Zinc said it has, to date, successfully carried out extensive programs at Prairie Creek, in accordance with all regulatory requirements and in compliance with all permits and licenses.

“Given the open-ended nature of the Mackenzie Valley permitting process, and the company’s experience to date, it is likely that the environmental assessment process will extend for a considerable time,” the company added.

http://www.petroleumnews.com/pntruncate/76532657.shtml

The Prairie Creek Mine project is considered unique because its environmental footprint is virtually complete. The project came within three months of production startup in 1982 before silver prices declined and the original developer, Cadillac Explorations Ltd., was placed into receivership after a spending a total of C$64 million on the project. Work at the Prairie Creek mine site during the summer of 2010 included continuing care and maintenance, environmental monitoring programs, road construction and repair, and a diamond drill exploration program. Canadian Zinc spent a total of C$4.2 million, compared with C$2.3 million in 2009. Over the years, a substantial amount of technical data has been accumulated on the project, dating back to the 1970s and the subsequent completion of the original Prairie Creek Definitive Feasibility Study by a former subsidiary of SNC-Lavalin in 1980. Numerous other technical and economic studies have been carried out since, while exploration of the property continued. The project is currently in the advanced stages of environmental assessment by the environmental review board. It is expected that public hearings will be held in April or May and that the EA process for the Prairie Creek Mine will be completed in mid-2011.
by lurker thanks

[Hockmir]

Ya gotta love that.

[Pro-Life]

+10% for the day despite the takedown crooks in the metals!!!

[NYBob]

Canadian Zinc Corp (CZICF) funfiat$1.3799 UP $0.1199 +9.52%

Volume: 300,127 @ 3:58:55 PM ET good demand
Bid Ask Day's Range
1.36 1.39 1.25 - 1.4
CZICF Detailed Quote

Cdn Zinc Corp J (CZN) funfiat$1.34 UP $0.12 +9.84%

Volume: 1,055,259 @ 3:59:23 PM ET Strong Demand
Bid Ask Day's Range
1.33 1.34 1.22 - 1.35
TSE:CZN Detailed Quote

The Hunt Brothers’ Silver Dream Mine –
Canadian Zinc (TSX:CZN, OTCBB:CZICF)

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60160272

[NYBob]

CZN Chart TI P&F TA Alert bullish price objective $4.32 per share -



The CZN P&F crystal ball light good NEWS coming

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60160272

God Bless

[NYBob]

Canadian Zinc Corp (CZICF) funfiat$1.35 UP $0.04 +3.05%

Volume: 474,562 @ 3:57:15 PM ET good demand
Bid Ask Day's Range
1.34 1.38 1.34 - 1.4277

New Rules Will Cause Panic For Shorts
Posted: Feb 25 2011 By: Jim Sinclair
Filed under: General Editorial

Dear Friends,

February 28th > be prepared for panicked
short sellers who cannot make delivery to try every trick in
the book to buy back their short positions.

http://jsmineset.com/

The following is information from Dr. Jim Decosta:

Here is the URL:

http://www.finra.org/Industry/Regulation/RuleFilings/2010/P121892?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+FINRARuleFilings+(FINRA+Rule+Filings)

Quote: There’s 3 new laws gaining attention in the NSS market reform arena:
FINRA 4320 goes into effect on 2/28/11.
It mandates 13 day buy-ins for open delivery failures FINALLY
applying to shares of non-reporting corporations.
FINRA 2010-043, also starting on 2/28/11 reinstates the
“short sale exempt” (SSE) marking requirements for trade
reporting and the OATS system.
Those MMs accessing the bona fide MM exemption from executing
pre-borrows or “locates” before admittedly naked short sales
must now FORMALLY acknowledge the accessing of that
universally-abused exemption.
Being that these trades are theoretically being made to
“inject liquidity” then the excuse to hide the related
trade data from the public’s eyes goes out the window.
You can’t have it both ways and claim the bona fide MM
exemption and later claim that the related trade data
needs to be kept secret because it might reveal a
“proprietary trading strategy”.

Truly bona fide MMs that are able to legally access that
universally-abused exemption cover their naked short position
on the next downtick after their short sale when buy side
liquidity is in need of being ejected as share prices fall.
The 3rd new rule which is in effect now states that
the offers and bids that MMs post must be of approximately
the same size.
No longer can the offers be of 1 million shares and
the offsetting bid good for the minimum 5,000 shares.

The verbiage in 4320 is especially well done as it FINALLY puts
the clearing firms that aid and abet this crime wave on the
spot.
With the FFETF, which is made up of 25 different agencies,
now on the scene the transparency has increased markedly.
You can imagine how critical the lack of transparency is to
a crime involving selling nonexistent securities and
then refusing to ever deliver that which you sold AFTER
being allowed access to the funds of the investor being
defrauded.

Here are the links to the rules
SR-FINRA-2010-028
and SR-FINRA-2010-043:

http//www.finra.org/Industry/Regulation/RuleFilings/2010/P121522

Notice the part I marked in bold in the quote above:
"FINRA 4320 goes into effect on 2/28/11.
It mandates 13 day buy-ins for open delivery failures FINALLY
applying to shares of non-reporting corporations."

God Bless

[NYBob]

Hockmir well, I have been in it a long time -
since before Conwest Res. 20 yrs. or more -
it will continue go up with the silver & gold -
and much more when final permit to mine it is received

http://investorshub.advfn.com/boards/board.aspx?board_id=14899

recently CZN got all agreements with the natives chiefs
worked out
and it will created 100s of jobs for the
local natives they need and want to have
so the natives also will be demanding and ask the federal gov.
to issue the production permit

Monday, January 31, 2011
6:00 AM ESTCanadian Zinc Corporation: Land Use Permit Extension Approved - Marketwire

Friday, January 21, 2011
6:01 AM ESTCanadian Zinc and Nahanni Butte Dene Band Sign Impact and Benefit Agreement for the Prairie Creek Project - Marketwire -
http://tmx.quotemedia.com/article.php?newsid=37686651&qm_symbol=CZN:CA

http://tmx.quotemedia.com/news.php?qm_symbol=CZN

Canadian Zinc Reports Net Income of $10.9 Million for Nine Months
Gain of $16.7 Million Recorded on Investment in Vatukoula Gold Mines
Working Capital of $36.5 Million
at September 30, 2010

http://tmx.quotemedia.com/article.php?newsid=35492025&qm_symbol=CZN:CA

God Bless

[Hockmir]

Thanks again, NYBob. Hokey Smokes but Hock is happy today.

[Pro-Life]

Great mother of pearl... today was sweeeeeeet!!!!!!!!!! +21%

[NYBob]

Canadian Zinc Corp (CZICF) fiat$1.38 UP $0.24 +21.05%

Volume: 1,287,333 @ 3:59:11 PM ET Strong Demand
Bid Ask Day's Range
1.33 1.37 1.1655 - 1.53
CZICF Detailed Quote

Cdn Zinc Corp J (CZN) fiat$1.36 UP $0.21 +18.26%

Volume: 3,896,830 @ 3:57:20 PM ET Strong Demand
Bid Ask Day's Range
1.35 1.36 1.15 - 1.56
TSE:CZN Detailed Quote

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60160272

God Bless

[NYBob]

The Hunt Brothers’ Silver Dream Mine –
Canadian Zinc (TSX:CZN, OTCBB:CZICF
welcome to -

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60160272

God Bless

[NYBob]

Canadian Zinc (CZICF.PK) Silver in a Clear Uptrend -



http://seekingalpha.com/article/253943-silver-in-a-clear-uptrend?source=qp_article

God Bless

[NYBob]

Hockmir thanks, enioy ride with the Ag bulls



Silver To Gold Ratio Chart -

Silver TA alert Ag bull break out start



http://investorshub.advfn.com/boards/board.aspx?board_id=14899

God Bless

[Hockmir]

Thanks for the heads-up on this one, NYBob.

[NYBob]

Hunt brother dream silver mine -

http://www.canadianzinc.com/content/investor/press/western-standard.php

Video Gallery

http://www.canadianzinc.com/content/gallery/video/

http://www.canadianzinc.com

http://investorshub.advfn.com/boards/board.aspx?board_id=14899

God Bless

[Pro-Life]

For the week so far: ~30% up!!! Well deserved and more to come!!!

[NYBob]

Cdn Zinc Corp J (CZN) fiat$1.09 UP $0.11 +11.22%

Volume: 558,537 @ 11:40:59 AM ET Strong Demand
Bid Ask Day's Range
1.09 1.1 1.0 - 1.12
TSE:CZN Detailed Quote

The Hunt brother Ag dream mine bull run started -
funny that the fiats still can get any CZN
one day no way to catch it with any -
of the funny fiats papers






Video Gallery

http://www.canadianzinc.com/content/gallery/video/

http://www.canadianzinc.com

http://investorshub.advfn.com/boards/board.aspx?board_id=14899

[Pro-Life]

My friends, for the week: +7%!!!

[Pro-Life]

The primary contribution to Canadian Zinc’s reported net income for the period ended September 30, 2010 was the increase (since December 31, 2009) in the quoted market value of the Company’s investment in Vatukoula Gold Mines Plc (“VGM”). VGM is a United Kingdom AIM (London Stock Exchange) listed company which owns and operates the Vatukoula Gold Mine in Fiji. For its financial year ended August 31, 2010, VGM reported that it had produced 59,658 ounces of gold of which 54,642 ounces were shipped and sold. For the fourth quarter ended August 31, 2010, VGM reported that 21,107 ounces of gold were produced and 19,251 ounces were shipped and sold.

On October 21, 2010, VGM announced a proposal to carry out a share consolidation on a one for fifty basis in order to enhance the marketability of the company's shares. VGM also stated its intention to explore the listing of its shares on a North American exchange.

Canadian Zinc acquired its investment in VGM during 2009 at an original cost of $10.142 million. The quoted market value of the Company’s investment in VGM increased from $14.038 million at December 31, 2009 to $30.753 million at September 30, 2010, resulting in a recorded gain of $16.715 million for the nine months.


Excerpted from this press release:

http://www.canadianzinc.com/docs/NR110810Q3.pdf

• CANADIAN ZINC REPORTS NET INCOME OF $10.9 MILLION FOR NINE MONTHS
• Gain of $16.7 million recorded on investment in Vatukoula Gold Mines
• Working Capital of $36.5 million at September 30, 2010

[NYBob]

Vatukoula development plan will afford the company greater production flexibility
Monday, January 10, 2011 by Ian Lyall


The process is designed to turn the mine into a 100,000-ounce-a-year
producer and is set to continue right the way through to May.


The process is designed to turn the mine into a 100,000-ounce-a-year producer and is set to continue right the way through to May.

http://www.proactiveinvestors.co.uk/companies/news/24444/vatukoula-development-plan-will-afford-the-company-greater-production-flexibility-24444.html

The accelerated underground development plan by Vatukoula Gold Mines (LON:VGM) will create some short term pain for the miner but it will eventually afford it some much needed “production flexibility”.

This is the conclusion of broker WH Ireland, which restated its 'buy' stance and 224 pence a share price target in the wake of today’s update from the group.

The process is designed to turn the mine into a 100,000-ounce-a-year producer and is set to continue right the way through to May.

“With its schedule of increasing development drives available for future production, the company is increasing its production flexibility and therefore further increasing its operational resilience,” WH Ireland analyst Tom Elder said in a note to clients.

“We reiterate this is highly desirable in the single-mine operation such as Vatukoula’s.

“Vatukoula remains on target to achieve its stated stage one production target of 100,000oz per annum,” he said.

“The company is also continuing with its exploration effort, with the ultimate goal of extending its reserve life significantly. We have few doubts that both these aims are highly achievable.”

The downside initially is that ore grades from the company’s wholly owned Vatoula Mine in Fiji have been lower in the first quarter of the company's financial year than they were in the previous three months.

Chief executive David Paxton said: "The first quarter has been focused on an intensive development program at the mine in order to overcome the historic shortage of operating areas and to prepare for the increase in production to achieve our long term gold production rate.

"Development was increased over 100 percent. However the increase in ore mined was below plan, and gold production for this quarter was marginally lower than forecast.

"We anticipate that development will be maintained at this increased rate until about May 2011 and as a result, we plan to be continuing to deliver lower grade ore, and hence we expect that gold production will be lower in the second quarter than the current quarter."

The grade of the precious metal recovered dropped to 6.48 grams per tonne in the quarter starting September 2010 from 8.81 grams three months earlier.

Over that same period cash costs increased to US$1,047 an ounce from US$647, while net operating earnings fell to £3.2 million from £.5.5 million.

Ore mined and delivered increasd 12 percent to 80,914 tonne from 72,444, VGM said in an update to investors.

Collins Stewart’s John Mcgloin said: “While production numbers are down the news that development metres are up 100 per cent should be seen as highly positive and a flag that the company is progressing well to achieving its 100,00 ounce production target.

“Adequate development is the crux for all underground operations and particularly so for VGM as the variability of the orebody means that it needs to have flexibility in selecting high and medium grade stopes to optimise production.”

The company is a rare commodity on the AIM market – a producing gold mine with a world class resource base.

The Vatukoula gold mine sits on a reserve of 630,000 ounces with a resource of 4.3 million ounces.

The shares, up 70 per cent in the last 12 months, were down 30.5 pence at 182 pence at 11.30am.

http://investorshub.advfn.com/boards/board.aspx?board_id=14899

[Pro-Life]

Looking for another run here soon enough...

[Pro-Life]

CPM Group Looks For Historically High Silver Prices For Next Decade

10 December 2010, 10:30 a.m.
By Kitco News
http://www.kitco.com/

http://www.kitco.com/reports/KitcoNews20101210AS_CPM.html

(Kitco News) - Silver prices are projected to remain at historically high levels over the next 10 years, concludes CPM Group in its 2010 edition of its “Silver Long-Term Outlook,” released Thursday by the New York commodities research and advisory firm.

The 224-page study is a comprehensive analysis of the key market fundamentals of silver that are expected to influence prices over a decade. The report contains projections for global mine production through 2019 on a mine-by-mine basis and also contains a new China section with an analysis of the silver supply and demand in a previously opaque market. CPM Group said the use of silver in China during 2009 was perhaps twice as much as had been believed.

The report also reviews uses for silver, including new fabrication demand such as solar panels, as well as investment. The report includes 10-year projections of supply, demand, and prices under a base case and two alternative scenarios.

“Strong investment demand, the single most important factor in influencing the price of the metal, is expected to keep silver prices at elevated levels during the projected period,” CPM Group said in a news release announcing the publication, which can be purchased. “Investors who view silver as a safe-haven asset are expected to continue buying large amounts of silver over the next couple of years as uncertainty regarding global economic growth, financial market instability, and volatility in major currency markets persist. As these concerns recede later in the decade, investment demand is projected to decline. Silver prices are expected to weaken alongside the decline in investment demand as the decade progresses.”

CPM Group said fabrication demand for silver is forecast to rise over the projected period, providing additional support to prices.

“Even in present economic conditions, there is strong demand for some of the products in which silver is used, including various electronic components used in a full range of consumer and industrial equipment,” CPM Group said. “Fabrication demand for silver is expected to rise further over the next few years, due to an anticipated improvement in global economic activity coupled with increased use of silver in some of its new and relatively new uses, such as solar panels, silver-zinc batteries.”

Primary silver mine production is expected to increase due to high silver prices and the relatively low cash and total operating costs, CPM Group said. Also, since much silver is produced as a byproduct of gold, copper, lead, and zinc, favorable market fundamentals and rising prices for these metals are expected to mean higher output and thus more silver as a by-product during the initial years covered by the CPM Group report. However, during the second half of the forecast period, net additions to silver mine supply are expected to decline, which CPM Group forecast to support silver prices during that time.

Meanwhile, CPM Group said silver use in China is estimated to have risen around three and a half times over the last decade, from 40.8 million ounces in 2000 to 139.2 million ounces in 2009, twice as large as many Western commentators have previously suggested. “Chinese silver fabrication demand is projected to account for nearly a fifth of global silver fabrication demand this year,” CPM Group said.

Previously, a lack of reliable statistics on silver fabrication demand and secondary recovery prevented China’s inclusion in international statistics. However, CPM said it has developed what it feels are sufficiently reliable statistics on silver fabrication demand by major industrial category and scrap recovery, relying on a network of industry associations and industrial participants in these markets.

By Allen Sykora of Kitco News; [e-mail]

[Pro-Life]

Interview With Theodore Butler

By: James Cook & Theodore Butler
Posted 24 November, 2010

Cook: For the past ten years you have been claiming that silver was the best thing people could own. How do you feel now with silver around $25 an ounce?
Butler: I have a sense of relief that I could not possibly have hurt anyone who followed my advice. I also feel intellectually vindicated about the way things are turning out. Lastly, I feel amazed how good silver still looks for further gains.

Cook: How high could it climb?
Butler: Real high, but by now you should know I shy away from specific price targets.

Cook: A lot has been going on with silver lately. Most of the things you’ve written about are starting to happen. What do you think about the recent spate of lawsuits against JPMorgan and HSBC?
Butler: It’s a big deal. The main thing is not the outcome of this case, but rather the fact that they were filed.

Cook: How many lawsuits were filed?
Butler: The latest tally is 25, I’ve been told.

Cook: Why do you think these lawsuits are important?
Butler: It is another confirmation of the growing recognition that silver has been manipulated in price.

Cook: They must be reading your newsletter because everything claimed in the first lawsuit originated with you. Do you agree?
Butler: Yes, I know that for a fact.

Cook: The basis of the lawsuit is that these big banks are short an inordinate amount of silver. How much to be exact?
Butler: It varies over time, but at the time referenced in the lawsuit, JPMorgan, either alone or with another U.S. bank, held short on the COMEX the equivalent of 25% of world annual mine production

Cook: How many ounces is that?
Butler: In most recent CFTC data, it is 150 million ounces, but within the past year it has been over 200 million ounces

Cook: You’re claiming that’s manipulative?
Butler: Absolutely. It would be impossible for such a concentrated short position not to be manipulative. It was this observation that led to the current CFTC silver investigation which, in turn, led to this lawsuit.

Cook: How many ounces are there held short in total?
Butler: The total net short position in COMEX futures is around 550 million ounces, but if you include everything, especially unbacked bank certificates and pool accounts, it grows to 2 or 3 billion ounces.

Cook: Who are these short sellers outside of the big one or two?
Butler: On the COMEX, there are about 8 commercial entities short over 300 million ounces, including the biggest.

Cook: They got squeezed pretty good when silver hit $29, didn’t they?
Butler: You bet.

Cook: How big have the losses been for the shorts?
Butler: In silver, the big 8 were out over $3 billion at the top, and more than $5 billion if you include all the shorts.

Cook: You pointed out that there had to be a lot of margin calls, when gold is included, what’s the total?
Butler: All in all, almost $15 billion.

Cook: They actually had to cough up $15 billion?
Butler: Absolutely. That’s a key component of the clearinghouse system.

Cook: Did anybody fail to make their margin calls?
Butler: It’s hard to tell.

Cook: I thought the price rise to $29 might have been because some folks couldn’t make margin calls and the brokerage firm bought back their position. No?
Butler: I’m certain there was a lot of that; they liquidate the contracts to satisfy the margin calls.

Cook: They don’t mess around do they?
Butler: This is basic commodity stuff. As a customer, if you don’t meet your margin calls your broker will liquidate your position. Otherwise the brokerage firm must eat the customer’s loss. Brokerage firms don’t allow customers a free ride. If a brokerage firm doesn’t meet its overall margin requirements to the clearinghouse, that’s a default, a real no-no.

Cook: It’s hard for me to believe that JPMorgan is sitting flatfooted waiting for the axe to fall. Don’t you think they’ve dug up a lot of silver to help reduce this short position?
Butler: I’m sure they’ve come up with as much silver as possible, but there are physical constraints to that. Their problem is not a money problem, but a physical material problem.

Cook: I see they raised margin requirements on silver. Why only silver?
Butler: Silver had moved the most and the margins should have been raised. The scandal was when they raised the margins. This is an issue of timing. They waited until prices made a downside reversal and then raised silver margins.

Cook: Is this fishy?
Butler: This is an example of why I refer to the CME Group (COMEX) as operating a criminal enterprise, as I’ve seen them pull this dirty trick numerous times in the past. The exchange times the margin increase so that it comes when it is least likely to hurt, and maybe help, its big constituent member short holders. That time is always best when the price makes a sudden reversal down after a big climb. This way, the margin increase actually hurts the longs and benefits the shorts. The reversal to the downside swings the financial tide against the longs temporarily.

Cook: What should they have done?
Butler: What they should have done is raised margins on the way up, but that would have hurt the shorts, something the exchange would never do. By timing the margin increase just after a price reversal to the downside, the exchange helps the shorts.

Cook: Are they above the law?
Butler: What’s particularly infuriating and illegal is that the exchange is designated under commodity law as a self-regulatory organization (SRO). That means the CME Group is supposed to do things on a fair and even-handed basis, not cater to the selfish interests of its most important members. The phrase that comes to mind when describing how the CME fulfills its regulatory obligations is letting the fox guard the henhouse.

Cook: How in the world did this come about?
Butler: The CFTC and Congress made a very big mistake when they turned over so much regulation to the exchanges years ago. There is a conflict of interest in what the exchange does in its regulatory role. That’s why the COMEX is fighting the CFTC tooth and nail over position limits and every other issue that may infringe on its own interests.

Cook: The Commodity Future Trading Commission has ruled that within 3 months or so they will put limits on how much one entity can be long or short. Will this break up the concentrated short position?
Butler: If they stick to the timeline dictated by the new law and if they impose legitimate limits and throw out the phony exemptions to those limits.

Cook: Won’t that set silver “free at last?”
Butler: Yes, “thank God Almighty.”

Cook: Will the COMEX back down?
Butler: I don’t think so. They know this is the one issue that can blow the lid off silver.

Cook: Silver could turn into a runaway train. Why don’t these short sellers get out of the way and cover now?
Butler: They desperately want to, but it’s easier said than done because their position is so large that they are trapped. Just covering the limited amount of shorts to date has already had a profound impact on price. Why do you think we’ve risen so much in the past few months?

Cook: One of the commissioners at the CFTC has made a number of statements criticizing the shorts and the Commodity Exchange itself. Sounds like the senior regulators have embraced your views. Do you agree?
Butler: It’s hard to reach any other conclusion.

Cook: If that’s true then position limits are inevitable would you say?
Butler: The new law has mandated position limits, so unless the law is repealed I would say they are inevitable. But more than that, it’s important to remember that position limits are of specific relevance for silver more than any other market.

Cook: What do you mean?
Butler: COMEX silver is the only market which must have position limits radically reduced from the current accountability level. In all other commodities, including gold, the level of position limits is not so important because the short position is not that large. In silver, it’s the core issue.

Cook: What kind of position limit level do we need to see in silver?
Butler: If we don’t see a new level of close to 1500 contracts, instead of the current 6000 contract level, then this market is more crooked than I have been alleging. And I would think those in the public who follow this issue closely will be outraged and demand an explanation from the regulators. I know I will be.

Cook: Is it safe to say that silver is a buy until the short position is covered?
Butler: At least until the concentrated short position is reduced.

Cook: The volume on the SLV, the exchange traded fund, went ballistic recently. How many shares were trading before this jump and what did it go to?
Butler: There was an average daily volume of close to 15 million shares a day and it jumped to ten times that on a recent trading day.

Cook: How much of that was day trading?
Butler: Close to 99%, same as in every other market.

Cook: OK, but how much silver do you think was purchased on balance and must be delivered to the SLV?
Butler: I had been guessing close to 20 million ounces, but much to BlackRock’s credit (they’re the new sponsor), the silver is being brought in much more quickly than when Barclays was the sponsor.

Cook: Where is the silver coming from?
Butler: No one knows for sure, but the hallmarks on many of the new bars being deposited were from Russia and China. I think that’s good, because as those two countries wake up to the silver manipulation, they should be unlikely to continue supplying material at artificially depressed prices.

Cook: I heard a big delivery came in to the SLV last week. True?
Butler: Yes, there was an extraordinary deposit of 11.3 million ounces into the SLV on Wednesday, November 10, the largest one day deposit in the ETF since 2006. This brings the deposits into the Trust to over 18 million ounces in little more than a week and a half, to a new record of over 344 million ounces.

Cook: Are you underestimating the amount of silver available? Seems like there is always more silver.
Butler: While it is certainly possible that I have underestimated the amount of silver bullion in the world, that is not yet evident to date. I have always estimated about one billion ounces and we haven’t grown above that amount yet. What has happened is that more silver is being transferred from unreported inventories to reported inventories. This does create the illusion that the supply of silver is endless. It is not.

Cook: How much is left in unreported inventories that can come into the market?
Butler: Unless you have Superman’s x-ray vision and can see all the world’s vaults simultaneously, there is no way to know how much is left in unreported inventories. And I guarantee that you will make yourself crazy if you persist in trying to figure out the amount remaining.

Cook: Are you still sane?
Butler: No one comes with a butterfly net.

Cook: How much is known or in the reported category?
Butler: Since 2006, more than 550 million ounces have been transferred from unreported silver into reported world inventories, including the SLV and all other similar programs. Currently there are more than 716 million ounces in total world visible silver bullion inventories. That’s a very big chunk of my long-time estimate of one billion ounces in total world inventories. The way to look at it is that there are 550 million ounces less that can be transferred in the future. The long-term rise in price would seem to confirm my thinking.

Cook: Could the big shorts be buying the SLV to cover their short position?
Butler: Sure, but not to excessive amounts, as that would require lying to the SEC on ownership disclosure regulations. That’s not likely.

Cook: How much silver do you think JPMorgan and one other bank are short?
Butler: As of this moment, I’m guessing JPM may now be below 25,000 contracts. That’s 125 million ounces. But we won’t know for sure until more CFTC data are released.

Cook: How about the big eight shorts?
Butler: My guess is they are down to 56,000 contracts. That’s 280 million ounces.

Cook: How about all the shorts combined?
Butler: In COMEX futures total, I’d guess a bit under 500 million.

Cook: How does that compare with other commodities?
Butler: Still way off the charts when comparing paper contracts to real world production and inventories.

Cook: Do you see this leading to a price explosion in silver soon?
Butler: It’s one of several things that will lead to an explosion.

Cook: How does the silver short position compare to gold?
Butler: The silver short position is much bigger than gold in every measurement, especially compared to world inventories. Silver’s relative short position is more than 100 times larger than gold’s.

Cook: Do you think silver will outperform gold?
Butler: Yes. Silver has yet to leave gold in the dust, although it has fully matched or exceeded gold’s price performance. That is actually an advantage to those gold investors who have yet to make the switch into silver. It’s not too late.

Cook: Are you suggesting a switch now?
Butler: Yes. The facts suggest silver will outperform gold in the future, the logical investment action would be to convert gold into silver. Not because gold is likely to go down necessarily, but because silver is likely to offer better investment bang for the same buck.

Cook: Have people begun to switch?
Butler: There has been a noticeable shift to physical silver investment demand, perhaps from gold investors, although I still believe it’s in the early stages. Additionally, U.S. Mint sales of Silver Eagles are particularly strong relative to Gold Eagle sales, further confirming what may be a growing investor preference for silver over gold. Given how little silver exists compared to gold, if this trend continues, the influence on silver prices should be profound.

Cook: What’s the gold-silver ratio now?
Butler: The gold/silver ratio narrowed to almost 52. This is the best relative reading for silver since the summer of 2008, just before the price of silver was manipulated lower by JPMorgan and other commercial crooks on the COMEX.

Cook: You’ve got big cahunas calling JPMorgan a crook over and over again. Ever hear from their lawyers?
Butler: Not a peep and I send every article I write in which I mention JPMorgan to Jamie Dimon, CEO of JPMorgan and to the top regulatory officials at the CME, in addition to the CFTC.

Cook: I wonder why they haven’t sued you. If someone was calling my company crooked I think I would at least have my lawyer send them a letter.
Butler: Look, I’m not looking to get sued, but I don’t know of any other way to flush these weasels out. I know that JPM and the CME are operating as a criminal enterprise when it comes to silver.

Cook: What about the COMEX? You’ve been calling them sleazy for years. Have you ever received an answer to the numerous letters you’ve sent them?
Butler: Up until a few years ago, they would respond from time to time, but more recently they’ve been hiding behind the CFTC’s skirt and letting the Commission do their dirty work.

Cook: Yes, but now I see the COMEX has been in bitter disagreement with the CFTC on position limits. Why are they so opposed?
Butler: It may indicate that the CFTC, under Gary Gensler, is sick of the exchange using the CFTC. The reason the CME is so opposed to position limits is because of silver, not any other commodity. Don’t be fooled into thinking this isn’t a silver-specific issue.

Cook: Why only silver?
Butler: This is an important point. There is no position limit problem in any other commodity apart from silver. Not in oil, or grains or gold. Just silver. It’s the dirty secret that’s about to be revealed.

Cook: How much money have the banks made over the years with this big short position in silver?
Butler: Cumulatively, it could be billions of dollars.

Cook: This gravy train has suppressed the price, right?
Butler: Yes. The concentrated short position makes it impossible for the price not to have been suppressed.

Cook: If the market gets free of the concentrated short position it should revert to the true market price. Any idea what that is?
Butler: I’ll let the market tell us, but much higher than we’ve been in silver.

Cook: Do you think it will overshoot?
Butler: I think it’s impossible for it not to overshoot.

Cook: You think that Chairman Gensler at the CFTC is a straight shooter, right?
Butler: I think he walks on water. I may be dead wrong, but I’m a pretty good judge of human character.

Cook: Will he cure the silver mess?
Butler: If he follows the law and what he knows to be right.

Cook: Is he more competent than prior chiefs?
Butler: Gensler is the smartest guy in any room. It would be an insult to compare him to any former chairman or chairwoman.

Cook: Do you still claim the CFTC has looked the other way?
Butler: They have in the past, but I sense that is changing.

Cook: I think they hate your guts. Nobody’s been in their face with solid accusations like you have. Are they still hostile?
Butler: Hard to tell. I’m not concerned with past feelings. I don’t see why they would still be hostile; I offer constructive solutions where nobody else does. If they are hostile to anyone it should be towards those responsible for the manipulation, like JPMorgan and CME.

Cook: You’ve been the pioneer of virtually every new revelation about silver for over a decade. Just about everything that you predicted has come to pass. You’ve been a great conceptual thinker on silver and the premier whistleblower. Do you think the CFTC will ever acknowledge this and give you the award you deserve?
Butler: I sure hope so, but you’d have to ask them.

Cook: Everybody and his brother is writing about silver now. Some of it is amateurish and the good stuff originated with you. However, most of these articles never give credit to you. Do you agree that this is dishonorable?
Butler: Yes.

Cook: These organizations and individuals are trying to elbow themselves into position to take credit for your work. I’ve never seen anything like it, have you?
Butler: No.

Cook: What do you make of it?
Butler: Those that plagiarize are stealing my stuff and then lying by pretending they thought up my ideas. I’d avoid such people with a ten-foot pole.

Cook: They need to at least mention you if you are the source of their information. Right?
Butler: I think so.

Cook: Let’s change directions. What about COMEX silver inventories? What’s going on with them?
Butler: Recently, COMEX warehouse inventories dropped to near four year lows, at just under 108 million ounces. This drop, importantly, was accompanied with great turnover (in and out movements); highly suggestive of tightness and that the inventory is held in strong hands.

Cook: What’s the historical perspective on this?
Butler: COMEX silver inventories are down 60% from the 280 million ounce peak in the mid-1990’s. In contrast, COMEX gold inventories are at a record high of over 11.3 million ounces, the highest in the 45 year history of the COMEX. This is an apples to apples comparison, as the COMEX is the dominant market for both gold and silver trading.

Cook: Are we in a shortage?
Butler: I think we are in the early stages of a silver shortage that is bound to grow more severe.

Cook: Won’t this cause a surge in mining production?
Butler: Sure, eventually. But any mining increase in response to higher silver prices will take many years to hit the market. It’s not like flipping a light switch.

Cook: You’ve mentioned three things that will drive up the price of silver. It looks like one of them, investment demand, is kicking in. Will it get bigger than this?
Butler: I think that’s a certainty, as more people are waking up to the silver story.

Cook: Your second bullish factor is industrial demand. Do you still expect industrial users to panic because of a shortage?
Butler: Ever see what’s left in a supermarket after a hurricane warning?

Cook: Where does the price of silver burn itself out if a buying panic occurs?
Butler: Use your imagination. Then double it.

Cook: Your final and biggest bullish factor is the end of the concentrated short position. What will this do?
Butler: Terminating the concentrated short position will end the decades-old manipulation itself. That will bring about an honest and free market.

Cook: How will they cover the short position?
Butler: By buying back the position, delivering against it or by defaulting on it.

Cook: What about going forward? What will no big short sellers mean for the future?
Butler: It will be a different world price-wise.

Cook: According to the CFTC, the deadline for position limits is just over 2 months. Is silver a ticking time bomb until then?
Butler: Silver is a ticking time bomb for many reasons and the coming open debate on position limits is one of them.

Cook: The shorts are going to have to buy back futures aren’t they?
Butler: At some point, the shorts buying back is the post plausible outcome, as the only other choices are to deliver metal or default.

Cook: How many more shorts other than JPMorgan will have to cover?
Butler: My guess is somewhere around 15 to 20 thousand, a 75 to 100 million ounce equivalent.

Cook: Am I missing something or is this a lock?
Butler: If you mean much higher prices, then it looks like a lock to me.

Cook: This is so compelling I have to ask why it hasn’t been discounted in the silver price? How come it’s not $100 already?
Butler: I think it’s a combination of a lack of homework and the initial disbelief of the whole silver premise which prevents an objective investigation.

Cook: I remember when we first met ten years ago. You were telling me silver was the best thing on earth to own. Meanwhile, a well known investment service was sending out mailings suggesting people short silver at $4.00. They said silver was more plentiful than cockroaches. I wonder what happened to them?
Butler: I hope they covered their shorts quickly.

Cook: I bring this up because a lot of people have disagreed or argued with you along the way. They’ve all been proven wrong. However, to this day there are naysayers. What do you say to a guy like Jeffrey Christian at CPM who says there’s no way that JPMorgan is short that much silver?
Butler: Generally it’s good that disagreement exists so that market participants can hear both sides of the silver story.

Cook: What about Jon Nadler who says if Ted Butler was right the price would already have gone up?
Butler: The price has gone up and will continue to do so, in my opinion.

Cook: Why exactly has silver made this big recent move?
Butler: Primarily because of a lack of additional commercial short selling on the COMEX. It was the absence of additional commercial short selling, particularly by the big concentrated shorts, like JPMorgan, that allowed the price to climb as much as it did. On the rally it became obvious that the shorts were experiencing great financial stress, being forced to deposit many billions of dollars in margin calls. This should be taken as further proof of the manipulative role that the big shorts exerted on the price of silver.

Cook: Why did it get whacked?
Butler: The problem for the big shorts was that not only were they experiencing financial stress due to the rising price, they were unable to reduce their short position. That circumstance threatened to result in financial ruin if permitted to continue. Faced with financial ruin and the growing awareness by many of the predicament the big shorts were in, they resorted to their only alternative to that ruin – create a large and dramatic sell-off. That was what we began to see on Tuesday, with the CME’s unethically timed silver margin increase and the collusive vicious sell-off on Friday, under the cover of general commodity weakness.

Cook: What’s next?
Butler: No one knows for sure. It comes down to how much additional long liquidation the big shorts can engineer. We are still above all the critical moving averages, so there does exist the possibility we could go lower to get the technical funds completely flushed out. For sure, if we do go lower, it will be because JPMorgan and the other COMEX crooks are successful in tricking the technical funds into forced selling and not for any other reason. But there has been significant liquidation already, so it is just as possible it could be done or nearly so. Certainly there is nothing in the real world of silver that would account for further selling.

Cook: What’s the status of the formal investigation of silver by the CFTC, Enforcement Division?
Butler: It has yet to be concluded. A new director was just named which should help resolve the investigation that was initiated because of my revelations in 2008 and which Commissioner Bart Chilton publicly referenced recently. No one is more anxious than me to see what the investigation concludes.

Cook: You’ve made a big thing about pool accounts at brokerage firms, international banks and private mints. What can go wrong?
Butler: Everything. It is not hard to imagine investors ending up with a total loss because the metal may not exist to back these programs. If someone is claiming to store 1000-ounce bars for you and you don’t have the serial numbers for the exact bars you paid for, you should run, not walk, to a storage program that allows you to get the specific bars. I’d be especially wary of metal purported to be stored out of the country.

Cook: Are you recommending people switch from gold to silver?
Butler: Most definitely. That still appears to be a switch, which will be greatly rewarding. It amazes me how so many commentaries predict that silver will outperform gold, yet won’t come out and say that you should sell gold in order to buy silver. It makes no sense not to sell gold in order to buy silver if you are convinced silver will outperform gold. I think many feel it’s heresy to sell gold for any reason. But if your goal is to get the best return on your investment dollar in the future, which it should be, switch to silver from gold.

Cook: The bottom line is that people who followed your advice have made a lot of money. What advice would you give to our clients now?
Butler: Well, the days of 4 or 5, 7 to 12 dollar silver are over and that’s too bad for new buyers. At least we spared no effort in urging folks to buy all along. I think in the future we will look back at current prices with much the same result, namely, large profits for those who bought. Although the price is much higher now than it was then and conditions have changed, in many ways today’s new conditions are better.

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