ZINC-LEAD-SILVER STUDY: PFS, new resource numbers make Prairie Creek attractive

NORTHWEST TERRITORIES – Vancouver-based Canadian Zinc Corp. has positive results from the preliminary feasibility study for the Prairie Creek zinc-lead-silver mine 200 km west of Forth Simpson. New resource and reserve estimates have also been made.

According to information in the PFS, the Prairie Creek project has a pre-tax net present value (8% discount) of $235 million with an internal rate of return of 40.4% and a payback period of three years. Pre-production capital costs will be $160 million plus a contingency of $33 million.

Canadian Zinc is planning an underground, cut-and-fill operation with paste fill. Mining rates will average 1,350 t/d. The mine will have an 11-year life based on reserves of 5.2 million tonnes grading 9.4% Zn, 9.5% Pb and 151 g/t Ag. There study did not consider the inferred resource of 6.2 million tonnes at 14.5% Zn, 11.5% Pb and 229 g/t Ag. Average annual production will be 60,000 tonnes of zinc concentrate and 60,000 tonnes of lead concentrate containing 76 million lb of zinc, 90 million lb of lead and 2.2 million oz of silver.

A number of short videos about the Prairie Creek project as well as a photo gallery are available to enjoy at CanadianZinc.com.