Zazu Metals Corporation
TSX : ZAZ

Zazu Metals Corporation

December 13, 2011 10:26 ET

Zazu Intersects 14.8% Zinc + Lead Over 50 Meters

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 13, 2011) - Zazu Metals Corporation (TSX:ZAZ) ("Zazu") is pleased to announce a 50 meter assay interval of over 14.8% zinc + lead in one of the seven metallurgical sample holes drilled as part of Zazu's broad based summer field program at its Lik Project. The Lik property is located 22 km from Teck's Red Dog Mine in Northwest Alaska.

All seven holes contained intercepts exceeding 6 meters above the 5% zinc + lead cut off grade. Full results are shown in the table below.

The summer field program at Lik combined exploration and development drilling. The exploration drilling focused on Lik North, the contiguous deposit to Lik South. The development drilling focused on improving geological, metallurgical and geotechnical understanding of Lik South.

The metallurgical drilling provided Zazu's second representative sample of the Lik South deposit. The first sample, acquired in 2007, served two separate metallurgical testing studies. The first study confirmed the ability to produce a saleable concentrate. The second study improved the quality of the concentrate and provided a preliminary processing circuit design. G&T Metallurgical Services are studying the new sample to refine both the processing circuit design and the concentrate quality.

Zazu's intent is to develop the larger Lik South deposit first as an open pit, then Lik North as an underground mine in later years. To achieve this, Zazu is advancing the Lik South deposit towards a feasibility study rapidly.

This summer's drilling in Lik North indicated exciting exploration potential. Zazu's first hole beyond the Lik North resource boundary intersected high grade zinc mineralization.

Historical drilling in Lik North produced an inferred resource estimate in excess of 5mm tonnes grading 9.5% zinc and 3.3% lead. This high grade hole indicates that zinc mineralization continues north beyond the existing resource and further into Zazu's property.

The two contiguous deposits at Lik, the 18.74 million tonne open pittable Lik South, and the deeper, 5.18 million tonne Lik North are shown on the "Lik Project approximate Resource, Pit and Drill Hole Locations" map at: http://www.zazumetals.com/s/Projects.asp. It should be noted that this map is provisional, and will change as mine design develops.

The 2011 summer program built on the suite of metallurgical, engineering and environmental studies conducted over the last two years, adding new studies where required.

The 2011 field program consisted of:

  • Exploration drilling on the Lik North deposit. Lik North already hosts a high-grade Inferred Resource. On strike drilling indicated significant exploration potential.
  • Geotechnical drilling as a precursor to augment mine design and site layout.
  • Metallurgical drilling acquired a bulk sample for studies aimed at improving process design and enhancing recoveries.
  • Environmental Baseline Studies on air and water quality, fisheries, cultural resource assessment, wetlands / soil / vegetation mapping, hydrology and hydrogeology assessments. These studies will support permitting and are ongoing.
  • Haul Road and Bridge Studies to refine bridge and haul road design and costs with a re-examination of the preferred route and completion of hydrology studies, including spring breakup ice and water conditions assessment, at proposed bridge sites.

The 2011 program was designed to advance the planning and permitting of a mine, making the Lik property one of the most advanced development stage zinc properties globally. The zinc market will be faced with several large mine closures over the next five years, with limited potential for replacement.

Composite results from DDH 215 to DDH 221
From
(m)
To
(m)
Sample Length
(m)
Pb
%
Zn
%
Pb+Zn
%
Ag
g/t
DDH 215 38.7 89.0 50.3 3.5 11.4 14.8 86.4
highest assay in the interval = 26.4% Zn & 8.6% Pb (67.7m - 69.2m)
DDH 216 12.8 23.5 10.7 2.0 8.5 10.5 9.0
and 29.6 40.2 10.7 1.6 7.0 8.5 55.4
and 50.9 60.0 9.1 2.1 11.0 13.0 123.7
highest assay in the 3 intervals = 19.0% Zn & 2.4% Pb (57.0m - 58.5m)
DDH 217 17.4 40.5 23.2 2.6 8.3 10.9 29.4
highest assay in the interval = 19.8% Zn & 11.7% Pb (36.0m - 37.5m)
DDH 218 63.4 74.1 10.7 4.2 10.0 14.2 5.0
highest assay in the interval = 14.0% Zn & 8.0% Pb (69.5m - 71.0m)
DDH 219 10.1 25.9 15.8 2.1 6.6 8.7 18.5
highest assay in the interval = 8.4% Zn & 8.5% Pb (12.5-m - 13.1m)
DDH 220 20.1 27.4 7.3 3.8 5.2 9.0 12.9
and 35.7 58.5 22.9 1.7 4.4 6.1 49.9
and 84.4 90.5 6.1 1.1 5.8 6.9 15.5
highest assay of the drill hole = 10.2% Zn & 6.3% Pb (22.3m - 23.8m)
DDH221 52.4 60.4 7.9 1.8 12.6 14.4 5.5
highest assay of the drill hole = 16.8% Zn & 3.7% Pb (54.1m - 55.8m)

Due to the shallow dipping, stratiform nature of the Lik South deposit, true thickness is estimated to equate to 85% to 90% of the sample lengths.

Zazu's 2011 summer program is now complete but data analysis continues.

Roscoe Postle Associates Inc., (RPA), formerly Scott Wilson Roscoe Postle Associates Inc., completed an updated Mineral Resource estimate in May of 2009. Its estimate of Lik South is an Indicated Mineral Resource of 18.74 million tonnes grading 8.08% zinc, 2.62% lead and 52.8 g/t silver; plus an Inferred Mineral Resource of 1.23 million tonnes grading 6.80% zinc, 2.12% lead and 35 g/t silver, at a 5% cut off grade. Lik North is an additional 5.18 million tonnes grading 9.65% zinc, 3.25% lead and 51 g/t silver of Inferred Resource at a 7% cut off grade. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The parts of this news release pertaining to the Mineral Resource estimate and the disclosure of drill results was reviewed by Dr. William E. Roscoe, P.Eng., a Principal Consulting Geologist with RPA, and Neil N. Gow, P.Geo., Associate Consulting Geologist with RPA, both of whom are qualified person as defined by National Instrument 43-101.

Items related to the engineering portion of this year's field program were reviewed by Wayne Corso P.E., consulting engineer for JDS Energy & Mining Inc, a qualified person as defined by NI 43-101.

About Zazu Metals:

Zazu is a Canadian-based exploration company focused on acquiring and developing base metal properties in North America. Zazu's principal asset is its 50% interest in the Lik zinc - lead - silver deposit in North West Alaska. Teck is a 50% joint venture partner in the Lik deposit. However, Zazu has the exclusive right to obtain 80% of the property by meeting certain spending commitments by 2018. Zazu is in the enviable position of having a limited number of shares outstanding, a strong treasury and no debt.

Additional information about Zazu including a company presentation is available at www.zazumetals.com.

Additional information about the property is on the Teck website (www.teck.com). Zazu is not responsible for the content, accuracy or timeliness of material contained on the Teck website.

ON BEHALF OF THE BOARD OF DIRECTORS

Gil Atzmon, Chairman and CEO

Some of the statements contained in this news release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

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