Post by
ilikezn on Nov 21, 2017 2:31pm
Echelon Wealth Partner -- CZX
Morning note from base metal mining analyst : Canada Zinc Metals Corp. (CZX:TSXV), $0.28 Watch List Cardiac Creek Deposit yields more High-Grade Zinc Highest Grades Ever from Footwall Zone Impact: Positive the final two holes of the 2017 Akie Drill Program have yielded wide intervals exceeding resource grades including the highest-ever grade from the Footwall Zone Metallurgical test work underway examining amenability to heavy media pre-concentration followed by conventional flotation to recover lead and zinc into saleable concentrates. Hole A-17-142 32.65m (True Width) grading 9.3% Zn, 1.85% Pb, and 15.5g/t Ag, including 11.31m (TW) at 19.3% Zn, 4.01% Pb, and 30.9g/t Ag highest ever grades in the Footwall Zone The hole tested a large open area directly down-dip of hole A-15-121 and along strike of A-15-124 in order to expand the limits of the indicated resource. The latter zone contained ~85% sulphides exhibiting well-developed mottled textures enriched with sphalerite, galena, quartz, carbonate and barite that were interbedded with black shale of the Gunsteel Formation. Hole A-17-143 20.49m (True Width) grading 6.73% Zn, 1.04% Pb, and 9.8g/t Ag, including 7.9m (TW) at 8.84% Zn, 1.57% Pb, and 15.0g/t Ag The hole tested approximately 75 metres along strike and slightly down-dip of hole A-94-11 and approximately 100 metres from hole A-10-74. The results are expected to expand the known limits of the indicated resource to the northwest and up-dip. By comparison, the Akie deposit hosts Indicated Resources of 19.6M tonnes grading 8.17% Zn, 1.58% Pb, and 13.6g/t Ag (3.54B lbs Zn, 685M lbs Pb, and 8.6Moz Ag). Another 8.1M tonnes of Inferred Resources grade 6.81% Zn, 1.16% Pb, and 11.2g/t Ag (1.2B lbs Zn, 207M lbs Pb, and 2.9Moz Ag). Looking ahead: CZX has begun a comprehensive metallurgical testing program on 2017 drill core composites (at Base Metallurgical Laboratories Ltd. of Kamloops, BC), under the direction of Tom Shouldice, P.Eng., Principal Metallurgist. Test work is aimed at determining the deposit`s amenability to heavy media pre-concentration followed by conventional flotation to recover lead and zinc into saleable concentrates. A total of 16 composites from five drill holes were prepared, totalling ~430kg of material. The composites comprise one global composite and 3 composites per hole -- representing the hangingwall, the main Cardiac Creek zone, and the footwall zone for each intercept. The global composite will be used for the Phase I program and the composites from each hole for Phase II. The work is in anticipation of a Preliminary Economic Assessment (PEA) assisted by JDS Energy and Mining of Vancouver, BC. CZX also plans to update the NI 43-101 resource estimate for the Cardiac Creek deposit by the end of the year. Potential Share Price Catalysts: Final Assay Results from 8-Hole Akie Drill Campaign Q417; Complete metallurgical test work Q118; Updated Akie Resource Estimate Q218; and Preliminary Economic Assessment Q218 CZX currently trades at an EV/lb Zn-eqiv. (M&I Resources) of US$0.0078/lb, compared with select peers averaging US$0.0247/lb. Based on total resources (M,I&I), CZX trades at US$0.0058/lb, compared with US$0.0187/lb