Canadian Zinc Corporation

Canadian Zinc Corporation

December 06, 2006 15:26 ET

Canadian Zinc Corporation: First Drilling Results From 2006 Underground Program at Prairie Creek

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 6, 2006) - Canadian Zinc Corporation (TSX:CZN) is pleased to report the assay results of the first two underground diamond drill holes from the Company's 100% owned Prairie Creek Mine in the Northwest Territories, where Hole 001 reported an intersection of 4.6 metres grading 23.87% zinc, 9.11% lead and 5 oz/t silver.

2006 Underground Diamond Drilling Program

The 2006 underground drill program at the Prairie Creek mine is focused on further defining the Main Zone (Zone 1-3) of mineralization in order to upgrade the resource category where previous wide spaced surface diamond drilling has outlined a large inferred mineral resource. The bulk of this drilling is targeted on detailing the vein style mineralization, however some deeper drilling exploring for additional stratabound mineralization is also planned.

Access to underground drilling has been provided through the establishment of a new 400 metre decline tunnel which has been driven from the existing lower level underground working. The decline is expected to reach its 2006 targeted length before the Christmas holiday break. Five new drill stations on 50 metre section lines have been established along the decline. Over 50 drill holes are planned from the decline totaling up to 10,000 metres of coring.

The underground drilling commenced from the first drill station, located on the 50650N section line, testing from the 864 metre elevation of the drill station down to below the 600 metre elevation for both vein and stratabound mineralization.

So far nine holes totaling 1610 metres of core have been completed from this station. A ring of six holes were completed on section 650N and three oblique holes towards section 600N. Drilling continues with three additional holes on the 600N section to complete the proposed drilling at this station. Drill holes vary in dip from +10 degrees to -90 degrees and length and from 120 metres to over 280 metres.

Underground Diamond Drill Results

Assay results have been received for the first two holes:

Hole Number From (m) To (m) Int (m) Pb % Zn % Ag gm/t Cu %
PCU-06-001 90.37 94.96 4.59 9.11 23.87 169 0.421
PCU-06-002 96.71 98.51 1.80 5.82 1.80 55 0.139

Drill hole PCU-06-001 reported exceptional grades and widths. Hole PCU-06-002 intersected the vein but encountered drilling problems with only 40% core recovery in the vein area.

The current phase of drilling is proposed to continue throughout the first quarter of 2007. Results will be reported periodically as assay batches are received and analyzed. For the first time in many years the Prairie Creek mine is being kept open throughout the winter months to enable this underground drilling program.

The drill core samples were cut by diamond saw and shipped to Acme Analytical Labs in Vancouver for multi-element assay by ICP-ES analysis. Fire Assay for Ag values greater than 50 gpt is pending. Standards, duplicates and blanks were inserted and included in the analysis. Alan Taylor, P. Geo., Chief Operating Officer & Vice President Exploration and a Director of Canadian Zinc Corporation, is responsible for exploration program, and is a Qualified Person for the purposes of National Instrument 43-101 and has approved this press release.

About Canadian Zinc:

Canadian Zinc's 100% owned Prairie Creek (zinc/silver/lead) Project, located in the Northwest Territories, includes a partially developed underground mine with an existing 1,000 ton per day mill and related infrastructure and equipment. The Prairie Creek Property hosts a major mineral deposit containing a historically estimated resource of 3.6 million tonnes (measured and indicated) grading 11.8% zinc; 9.7% lead; 0.3% copper and 141.5 grams silver per tonne and 8.3 million tonnes (inferred) grading 12.8% zinc; 10.5% lead and 0.5% copper and 169.2 grams silver per tonne, with significant exploration potential. The deposit contains an estimated, in situ 3 billion pounds of zinc, 2.2 billion pounds of lead and approximately 70 million ounces of silver.

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 resources, future trends for the company, progress in development of mineral properties, future production and sales volumes, capital and mine production costs, demand and market outlook for metals, future metal prices and treatment and refining charges, the outcome of legal proceedings and the financial results of the company. 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.

Contact Information

  • Canadian Zinc Corporation
    John F. Kearney
    (416) 362- 6686
    (416) 368-5344 (FAX)
    Canadian Zinc Corporation
    Alan Taylor
    VP Exploration & Chief Operating Officer
    (604) 688- 2001 or Toll Free: 1-866-688-2001
    (604) 688-2043 (FAX)