Zazu Metals Corporation
TSX : ZAZ

Zazu Metals Corporation

September 11, 2012 08:00 ET

Zazu Simplifies Permitting for Zinc Mine Development

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 11, 2012) - Zazu Metals Corporation (TSX:ZAZ) ("Zazu") is pleased to announce the completion of the multi-year process to transfer the Lik Deposit Federal claims to State of Alaska control.

The transfer conveys much of the permitting and development approvals from the Federal government to the Alaska Large Mine Permitting Group, a division of the Alaska Department of Natural Resources ("ADNR"). The Permitting Group consists of Alaska mining specialists who assist applicants to develop workable mining plans.

Alaska is a favorable jurisdiction for mining projects. Their development is recognized as a core strategy in promoting the state's economic growth. For example, the state's recent 'Road to Resources' initiative puts substantial state support into assisting the development of resource projects within Alaska.

Zazu believes that this support, along with the proactive attitude of the ADNR, will simplify the development process, consequently shortening the development time.

The global zinc market is facing a significant supply deficit by 2015 with a series of large zinc mine closures scheduled, and limited new mine development. The Lik project is one of the largest undeveloped zinc assets in the western world, unique in its ability to be developed in a timely manner and deliver a significant volume of concentrate.

This conversion marks another major step by Zazu in the development of Lik. Zazu's current activity focuses on studies needed for permitting. Many of these build on the prior years' activities and are multiyear in duration.

These include:

  • Environmental Baseline Studies on air and water quality monitoring, fisheries, cultural resource assessment, wetlands / soil / vegetation mapping, hydrology and hydrogeology assessments.
  • Studies to refine bridge and haul road design and costs. These included field testing of routes, hydrology testing and spring breakup ice and water conditions assessment.
  • Refining the resource estimates and pit models based on exploratory and engineering drilling.
  • An Acid Rock Drainage study.
  • Metallurgical studies aimed at improving process design and enhancing recoveries
  • Compiling data acquired from previous seasons with 2012 data to refine mine and infrastructure design.

The two contiguous deposits at Lik, the 18.7mm tonne open pittable Lik South, and the deeper, 5.2 mm 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. Zazu intends to develop Lik South first, and then access Lik North from the Lik South Pit.

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 National Instrument 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

Forward-looking statements:

This news release contains forward-looking statements. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include 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. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

The TSX does not accept responsibility for the adequacy or accuracy of this press release. No stock exchange, securities commission or other regulatory has approved or disapproved the information herein.

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