CANADIAN ZINC REPORTS POSITIVE METALLURGICAL TEST RESULTS FOR PRAIRIE CREEK MINE
Vancouver, British Columbia, June 4, 2009 -
Canadian Zinc Corporation - (TSX: CZN; OTCBB: CZICF) reports recent positive results from ongoing (Phase 5) metallurgical testing relating to its planned Prairie Creek zinc/lead/silver mine in the Northwest Territories of Canada.
In late 2008 a 530 kg representative rock sample of mineralized vein material was extracted from multiple headings within the underground workings at the Prairie Creek Mine.
The sample was composited at SGS Lakefield Research for large scale locked cycle testing with the objective of producing representative concentrates, tailings and process effluents using the actual proposed process flow sheet for the Prairie Creek Mine. This flow sheet has been presented in the Project Description Report, dated May 2008, submitted as part of the applications for operating permits, which are presently the subject of Environmental Assessment being carried out by the Mackenzie Valley Environmental Impact Review Board ("MVEIRB").
In addition, a large volume of representative mine water was also collected at that time and shipped to SGS Lakefield for use in the same locked cycle tests to better simulate actual site operating conditions.
Metallurgical Test Results:
Heavy Liquid Separation:
Previous metallurgical studies incorporated a Heavy Liquid Separation ("HLS") process applied to the Run of Mine (ROM) feed to optimize the existing mill at the Prairie Creek Mine by enhancing the metal grade entering into the flotation process, and thus reducing the amount of waste being needlessly processed. HLS is used in the laboratory to simulate the process of Dense Media Separation ("DMS") which will be undertaken on a commercial scale.
A composite ROM sample was stage crushed to a nominal ½ inch size. The composite was then screened at 14 mesh with the minus ½ inch and plus 14 mesh processed through a HLS plant. This resulted in 41% of the ROM composite being rejected as waste with a loss of only 2.5% total lead and 4.4% total zinc metal values. Waste rejection from the previous DMS studies averaged ~30%. The higher number in this recent case is a significant improvement but may relate to the inherent variability of dilution in the mining of mineralized vein structures to collect the bulk sample. The HLS test result is consistent with the previous studies in that it demonstrated that a significant increase in mill throughput and grade can be achieved with a minimal loss of economic metals of less than 5%.
The results of the HLS (DMS) test work are presented in the following table:
The HLS enhanced plant mill feed was then combined, mixed, and crushed to 10 mesh in preparation for the locked cycle flotation test work.
Locked Cycle Flotation Tests:
After crushing and grinding the HLS enhanced mill feed was delivered into a locked cycle flotation test where concentrates of lead sulphide, zinc sulphide and lead oxide were generated. No separate zinc oxide flotation was completed since previous metallurgical studies indicated low concentrate grades and low recoveries for zinc oxide.
The locked cycle tests were designed to produce concentrates, tailings and effluent for engineering, marketing and environmental studies and in using active means. The reagent scheme used in the locked cycle tests was developed from previous studies and slightly modified for use with the actual mine water. Small scale batch tests were run prior to the locked cycle tests with the objective of optimizing selectivity between lead and zinc.
Three large-scale locked cycle tests were performed.
The test results indicate that the overall grade of the blended lead sulphide / oxide concentrate assayed 67% lead, with a 82% recovery of total lead in the plant feed, and the zinc sulphide graded 58% Zn with a 74% recovery of the total zinc in the plant feed. An average of 92.7% of the total silver values in the plant feed was recovered within the lead and zinc concentrates.
"The recent metallurgical tests generated very satisfactory simulated results of anticipated actual operations in the production mineral concentrates at the Prairie Creek Mine," said Alan Taylor, Chief Operating Officer of Canadian Zinc.
"The Phase 5 test results showed concentrate grades and recoveries similar to results of previous locked cycle tests, allowing for variations within the individual bulk samples, and confirmed anticipated concentrate grades and recoveries under simulated actual proposed milling operations and using representative actual mine water." Mr. Taylor added.
The generated by-products of HLS reject and flotation tailings from the Phase 5 metallurgical tests are currently undergoing further study and characterization by Golder Paste Technology Ltd., of Sudbury, Ontario to assist in developing a new plan for the permanent disposal of paste tailings underground. Similarly CEMI Labs of Burnaby are further testing various water treatment options on the process effluent generated from this phase of metallurgical testing to ensure a sound treatment scheme during the operation of the Prairie Creek mine. Further study directed towards reducing the amount of certain deleterious elements within the concentrates, (eg. mercury, antimony and arsenic) to enhance payability, is also being examined.
The results of the test work will be used in pursuing marketing and treatment alternatives for the Prairie Creek concentrates and will also be incorporated into the Developers Assessment Report to be submitted to the Mackenzie Valley Environmental Impact Review Board later this year once Final Terms of Reference for the environmental assessment are issued. The MVEIRB issued Draft Terms of Reference for comments to be submitted by June 12, 2009 and finalization shortly thereafter.
Proposed Operations at Prairie Creek Mine:
The proposed new operation at Prairie Creek utilizes the existing infrastructure and facilities that were built in the 1980s and which will be upgraded and enhanced to meet current-day environmental standards.
The Mill, which is already constructed on site but never operated, will process 600-1,000 tonnes per day. Ore will be crushed to a gravel-size and passed through a new DMS plant. The lighter, uneconomic "gangue" minerals will create a waste rock aggregate. The more dense material will be processed further by grinding and flotation to produce concentrates of lead sulphide, zinc sulphide and lead oxide. No hazardous chemicals will be used in the process.
The existing large pond facility, originally intended in 1980 for tailings disposal, will be reconfigured, relined and recertified to form a two-celled Water Storage Pond.
Underground Tailings Disposal:
In recognition of concerns about tailings disposal, and following extensive research, Canadian Zinc has developed a new tailings management plan. The Company proposes to place all mill tailings permanently underground as paste backfill, together with approximately three quarters of the DMS waste rock and a cement binder. The mix will solidify after placement into a form of concrete. In this manner all mill flotation tailings will be backfilled into the voids in the underground mine with the waste rock aggregate. The flotation tailings are expected to be non-acid generating with low sulphide content and excess buffering capacity.
The benefits of this new tailings management plan are that all tailings will be placed underground and there will be no permanent disposal of tailings on surface.
Qualified Person:
Alan Taylor, P.Geo., Chief Operating Officer & Vice President Exploration and a Director of Canadian Zinc Corporation, is the Company's non-independent Qualified Person for the purposes of NI 43-101 and has approved this press release.
The Prairie Creek Mine:
A major underground tunneling and diamond drilling program led to the completion, in October 2007, of a Technical Report (the "Report") to National Instrument ("NI") 43-101 standards, which estimates that the Prairie Creek Property hosts total Measured and Indicated Resources of 5,840,329 tonnes grading 10.71% zinc, 9.90% lead, 161.12 grams silver per tonne and 0.326% copper. In addition, the Report confirms a large Inferred Resource of 5,541,576 tonnes grading 13.53% zinc, 11.43% lead, 215 grams per tonne silver and 0.514% copper and additional exploration potential. The Measured and Indicated Resource is capable of supporting a mine life in excess of ten years at the planned 1,000 tonnes per day mining rate.
Cautionary Statement - Forward Looking Information
This press release contains certain forward-looking information, including, among other things, the expected completion of acquisitions and the advancement of mineral properties. 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 completion of transactions, the issue of permits, the size and quality of mineral resources, future trends for the company, progress in development of mineral properties, future production and sales volumes, capital costs, mine production costs, demand and market outlook for metals, future metal prices and treatment and refining charges, the outcome of legal proceedings, the timing of exploration, development and mining activities, acquisition of shares in other companies and the financial results of the company. 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.
For further information contact:
John F. Kearney
Chairman
(416) 362- 6686
Suite 700, 220 Bay Street Toronto, Ontario M5J 2W4
Alan Taylor
Vice President Exploration & Chief Operating Officer
(604) 688- 2001
Suite 1710 - 650 West Georgia Street , Vancouver, BC V6B 4N9
Tel: (604) 688-2001 Fax: (604) 688-2043
Tollfree:1-866-688-2001
A more extensive description of the Company's activities is available on the Company's web site at www.canadianzinc.com
Canadian Zinc Supports Expansion of Nahanni National Park PRAIRIE CREEK MINE EXCLUDED FROM ENLARGED PARKACCESS RIGHTS TO BE PROVIDED BY NEW LEGISLATIONBALANCED APPROACH TO RESOURCE DEVELOPMENT AND CONSERVATION Tuesday June 9, 2009, 4:21 pm EDT OTTAWA, ONTARIO--(MARKET WIRE)--Jun 9, 2009 --
Canadian Zinc Corporation - (Toronto:CZN.TO - News)(OTC BB:CZICF.OB - News) (the "Company" or "Canadian Zinc") welcomes the announcement of the Government of Canada's decision and the introduction today in Parliament of new special legislation on the proposed expansion of Nahanni National Park Reserve, which excludes the Prairie Creek Mine, and supports the balanced approach to resource development and conservation.
The proposed Park expansion announced today in Ottawa by The Honourable Jim Prentice, Canada's Environment Minister and Minister responsible for Parks Canada, will see the area of Nahanni Park expanded by 30,000 square kilometers, making it the third largest National Park in Canada. The enlarged Park will cover most of the South Nahanni River watershed and will completely encircle the Prairie Creek Mine. However, the Mine itself and a large surrounding area of approximately 300 square kilometers is specifically excluded from the Park and will not be part of the expanded Park.
In making the announcement The Honourable Chuck Strahl, Minister of Indian Affairs and Northern Development, said that the Government recognizes the importance of resource development in Canada's North and the decision on the expansion of Nahanni National Park reflects a balanced approach to conservation and to potential future economic benefits that development of the Prairie Creek Mine can bring to the people of the Dehcho.
A new Bill, introduced by the Government in the House of Commons today, entitled "An Act to amend the Canada National Parks Act to enlarge Nahanni National Park Reserve of Canada" provides for the expansion of Nahanni National Park and, crucially from CZN's point of view, proposes at Section 7(1) amendments to the Canada National Parks Act to enable the Minister for the Environment to enter into leases or licences of occupation of, and easements over, public lands situated in the expansion area for the purposes of a mining access road leading to the Prairie Creek Area, including the sites of storage and other facilities connected with that road.
Heretofore, an access road to a mine through a National Park is not permitted under the Canada National Parks Act, and the Act is now to be amended solely for Nahanni National Park Reserve and specifically for the purpose of providing access to the Prairie Creek Mine area.
Attending the historic Nahanni National Park expansion announcement and celebration at the Canadian Museum of Nature in Ottawa today, Mr. John F. Kearney, Chairman of Canadian Zinc Corporation said:
"Canadian Zinc Corporation welcomes the long anticipated expansion of Nahanni National Park Reserve, with the exclusion of the Prairie Creek Mine area and the guarantee of access to the Mine through the enlarged Park."
"Canadian Zinc, and indeed the entire Canadian mining and exploration industry, supports a balanced approach to resource development and conservation, which in the proposed expansion of the Park has now been achieved," Mr. Kearney added.
Following the statements made by Prime Minister Harper, in announcing the interim withdrawal of lands for the purposes of park expansion in August 2007, where the Government committed to consultations to determine how to balance the interests of various stakeholders, including "the commercial interests whose existing investments must be recognized and respected", Canadian Zinc has been working closely with officials at Indian and Northern Affairs Canada and at Parks Canada, and in consultation with the Government of the Northwest Territories, to achieve this balanced solution.
In July 2008 Canadian Zinc and the Parks Canada Agency entered into a Memorandum of Understanding in which they agreed to work collaboratively, within their respective areas of responsibility, authority and jurisdiction, to achieve their respective goals of an expanded Nahanni National Park Reserve and an operating Prairie Creek Mine.
Canadian Zinc supports the proposed expansion of Nahanni National Park and has agreed to manage the development of the Prairie Creek Mine so the mine does not, in its own right, negatively affect the expansion of the Nahanni Park.
The balanced approach to development and conservation achieved today also acknowledges the aspirations of the communities of the Dehcho First Nations in that most of the South Nahanni watershed will be preserved and protected while also facilitating the development of the Prairie Creek Mine which will bring much needed jobs, benefits, business opportunities and economic stimulus to the Dehcho Region and to this part of the Northwest Territories.
Enactment of the new legislation introduced today will be a "win- win" for the Park, for the Prairie Creek Mine and for the Dehcho and will facilitate all parties achieving their respective objectives.
"Canadian Zinc believes that the Prairie Creek Mine and the enlarged Nahanni National Park can co-exist and that, properly planned and managed, the enlarged Park will not interfere with the operation of the Prairie Creek Mine and similarly that the operation of the Mine will not adversely impact upon the Park or its ecological integrity," said John Kearney.
"We are very pleased to be part of this unique and historic solution to the compatibility of mine development and environmental protection and conservation." Mr. Kearney added.
THE PRAIRIE CREEK MINE:
Canadian Zinc's 100% owned Prairie Creek Mine is an important Canadian resource, located in the Mackenzie Mountains in the Dehcho region of the Northwest Territories, within the watershed of the South Nahanni River and in proximity to but outside the current boundaries of Nahanni National Park Reserve.
The Project includes a partially developed underground mine with an existing 1,000 ton per day mill and related infrastructure and equipment. The mineral deposit contains very substantial quantities of zinc, lead and silver. When in production the Mine will add significantly to Canada's production of lead and zinc concentrates and will create employment for about 225 people and business opportunities for the local communities in the Dehcho region of the Northwest Territories which currently have a very high unemployment rate and a growing population.
Development of the Prairie Creek Mine has the support of the great majority of the peoples of the Dehcho, who are badly in need of the jobs, training and business opportunities that the mine will provide, and who at the same time are committed to the protection of their traditional lands.
Canadian Zinc has entered into Memoranda of Understanding with the Nahanni Butte Dene Band and with the Liidlii Kue First Nation (Fort Simpson) to establish mutually beneficial, cooperative and productive relationships. Canadian Zinc has agreed to use its best efforts to employ community members on a first preference basis and to assist the communities to benefit from the business opportunities associated with the Prairie Creek Project.
A major underground tunneling and diamond drilling program completed in 2006 /2007 led to the completion of a Technical Report to National Instrument 43-101 standards in October 2007, filed on SEDAR, which estimates that the Prairie Creek Property hosts total Measured and Indicated Resources of 5,840,329 tonnes grading 10.71% zinc, 9.90% lead, 0.326% copper, and 161.12 grams silver per tonne. In addition, the Report confirms a large Inferred Resource of 5,541,576 tonnes grading 13.53% zinc, 11.43% lead, 0.514% copper and 215 grams silver per tonne and additional exploration potential.
The Measured and Indicated Resource is capable of supporting a mine life in excess of fourteen years at the planned initial rate of 600 tonnes per day, which will increase to 1,200 tonnes per day, and the future inclusion of Inferred Resources is expected to extend the mine life to at least 20 years.
The proposed new operation at Prairie Creek utilizes the existing infrastructure and facilities that were built in the 1980s and which will be upgraded and enhanced to meet current-day environmental standards.
The proposed development and operation of the Prairie Creek Project is currently undergoing environmental assessment by the Mackenzie Valley Environmental Review Board, which is expected to be completed by October 2010. The exclusion of the Prairie Creek Mine from the proposed Nahanni National Park Reserve expansion area has brought clarity to the land use and policy objectives for the region and will facilitate various aspects of the environmental assessment.
The future operation of the Prairie Creek Mine will provide tremendous economic stimulus to this region of the Northwest Territories, and presents a unique opportunity to strengthen and enhance the social and economic well being of the surrounding Dehcho communities.
Cautionary Statement - Forward Looking Information
This press release contains certain forward-looking information, including, among other things, the expected completion of acquisitions and the advancement of mineral properties. 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 completion of transactions, the issue of permits, the size and quality of mineral resources, future trends for the company, progress in development of mineral properties, future production and sales volumes, capital costs, mine production costs, demand and market outlook for metals, future metal prices and treatment and refining charges, the outcome of legal proceedings, the timing of exploration, development and mining activities, acquisition of shares in other companies and the financial results of the company. 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. Certain terms are used in this press release, such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines prohibit U.S. companies from including in their filings with the SEC. Contact:
Contacts: Canadian Zinc Corporation John F. Kearney Chairman & Chief Executive (416) 362-6686 (416) 368-5344 (FAX)
Canadian Zinc Corporation Alan B. Taylor VP Exploration & Chief Operating Officer (604) 688-2001 or Toll Free: 1-866-688-2001 (604) 688-2043 (FAX) invest@canadianzinc.com http://www.canadianzinc.com --
wow another upday.. that is really nice to see we need it the rest of the year we may enter fair value $29 next year lavatoriez fiatz have less value for me - well, like to stay in CZN real silver values
June 1, 2009 Silver’s new boost comes from rising solar industry Commodity Online
VIRGINIA: At present solar industry may not be the largest consumer of silver, but trends are changing. The high prices of fossil fuels, their environmental impact due to carbon emissions is already leading to world-wide growth in investments in solar and alternative technologies for energy.
Photo-voltaics is the fastest growing application for silver in the past five years due to the above mentioned factors. A NanoMarket’s research suggests that the volume of silver used for photovoltaics will reach over 24 million troy ounces in 2016. The report titled “Silver Markets for Photovoltaics” pointed out that the market dynamics of the silver and PV market are changing. As thin-film and organic PV begin to take a larger share of the overall PV market the use of silver will shift from that of a simple coating used to fabricate the top electrodes in crystalline silicon PV to that of a key determinant in boosting efficiencies and materials performance. NanoMarkets believes that thin-film PV and organic PV both will account for 27 percent of silver used by PV in 2016.
Trade commodities or equities from across the globe. Join Now While the overall markets for silver are dominated mainly by its established, "conventional" uses, there are a number of emerging technologies that also use silver, and these rapidly growing technologies will account for a disproportionate amount of the growth in the silver market.
Key Findings: -PV is the fastest growing application for silver; NanoMarkets' research suggests that the volume of silver used for photovoltaics will reach over 24 million troy ounces in 2016.
-NanoMarkets also believes that silver reflective coatings could prove of immense importance in getting organic PV (OPV) to performance levels that would make its satisfactory for its biggest area of opportunity; building integrated photovoltaics (BIPV).
-While PV silver will continue to be dominated by simple silver pastes, the need for higher performance will create demand for pastes manufactured from nanomaterials which have higher degrees of conductivity than regular pastes. - -Another new opportunity can be found in transparent composite materials in which indium tin oxide (ITO) or conductive polymers are mixed with silver to create new materials for high performance top electrodes. These composites are being tried out first in OPV, but NanoMarkets believes that they will have applications throughout the industry.
The use of silver is, of course, partially linked to the price of silver. The price of silver has been fairly volatile over the past several years, ranging as high as $20 per ounce in mid-2008 and back down to about $10 per ounce in early 2009. Much of the recent decline in silver prices is due to the ongoing worldwide recession, which has reduced demand for most industrial silver, including for products made with silver inks. This volatility does introduce a level of uncertainty into the use of silver inks, but generally where an ink is the preferred form of a conductor, silver inks' benefits far outweigh the relative cost, even at high silver prices. Price is only one factor in the market for silver conductive inks, and such inks generally contribute only a relatively small portion of the cost of the products that use them., NanoMarkets report said. (Courtesy: PRNewswire)
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