Zazu Metals Corporation
TSX : ZAZ

Zazu Metals Corporation

June 16, 2011 09:02 ET

Zazu Starts Aggressive Summer Program at Lik

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 16, 2011) - Zazu Metals Corporation (TSX:ZAZ) ("Zazu") is pleased to announce that the Lik camp is open and an aggressive field program is underway. The program is designed to provide the information needed to move the project toward feasibility study stage. Zazu's Lik deposit is located 22km from Teck's Red Dog Mine in Northwest Alaska.

Over the last two years Zazu conducted a suite of economic, engineering, environmental and metallurgical studies on the property. These studies will be refined as well as additional studies undertaken. Zazu's recent private placement to Zebra Holdings and Investments S.À.R.L, a company owned by a trust settled by the late Adolf H. Lundin, provided sufficient funds to complete the required work.

The zinc market is facing several large mine closures over the next five years, with limited potential for replacement. The Lik deposit is one of the most advanced development stage zinc projects globally.

"A consolidation in the zinc industry is definitely underway," commented Gil Atzmon, CEO of Zazu Metals. "Zazu's goal is to have the Lik deposit in operation in time to deliver into this supply deficit."

The 2011 field program includes:

  • Exploration drilling on the Lik North deposit. Lik North already hosts a high-grade Inferred Resource and exhibits significant exploration potential.

  • Infill Drilling on Lik South. Complete additional holes in specific areas of the property designed to refine and increase the open pit resource.

  • Geotechnical Investigations to examine rock and soil conditions for improving pit design and mining method; planning for plant design and construction; and waste dump and tailing disposal design. Additional studies will examine the access road route to refine the road and bridge design and costs.

  • Metallurgy. Obtain a fresh sample of mineralized material for further metallurgical testing to facilitate flow sheet design and refine recoveries.

  • Environmental Baseline Studies. These include air and water quality monitoring, cultural resource assessment, wetlands / soil / vegetation mapping, hydrology and hydrogeology assessments. These studies will support permitting.

  • Haul Road and Bridge Studies. 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.

  • Port site Design. Refine design modifications and cost.

  • Acid Rock Drainage Study ("ARD"). SRK Consulting completed a preliminary geochemical characterization study in early 2011, and discussions are underway for ARD studies to facilitate waste rock and tailing disposal plans.

Zazu offers investors the opportunity to participate in a large, high -grade sulphide and open-pittable zinc deposit, located 20kms from existing infrastructure.

Roscoe Postle Associates, Inc., ("RPA"), formerly Scott Wilson RPA, completed an updated Mineral Resource estimate in May of 2009. Their 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 part of this news release pertaining to the Mineral Resource estimate 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.

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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