Post by
ndiamond on Jan 30, 2018 3:39pm
Echelon Wealth Partner - base metal mining analyst
updated report from him. most relevant part : ZX currently trades at an EV/lb Zn-eqiv. (M&I Resources) of US$0.008/lb, compared with select peers averaging US$0.036/lb. Based on total resources (M,I&I), CZX trades at US$0.006/lb, compared with US$0.021/lb Canada Zinc Metals Corp. (TSX.V : CZX) - Market Note from Echelon Wealth Partners Please find attached for your information a recent market note dated January 29, 2018 from Mining Analyst Ryan Walker of Echelon Wealth Partners. Canada Zinc Metals Corp. CZX-TSXV: $0.36 | NOT RATED 12-Month Target Price: N/A Ryan Walker, MSc | ryan.walker@echelonpartners.com | 416.479.8997 Resources, Confidence Grow at Cardiac Creek Zn-Pb-Ag Deposit in BC Event: Canada Zinc Metals has reported an updated NI 43-101 Resource Estimate for the assay results for the Cardiac Creek Zn-Pb-Ag deposit on the 100%-owned Akie property in the Kechika Trough, in northeastern British Columbia. The update reflects the inclusion of results from CZXs 8-hole (4,700m) 2017 drill campaign aimed at resource expansion and new target development. Importantly, the update sees growth in both Indicated and Inferred Resources, accompanied by increases in Zn, Pb, and Ag grades (Exhibit 1). CZX expects results from metallurgical test work in Q118, followed by a Preliminary Economic Assessment in Q218. Details: Indicated Resources have increased by 3M tonnes (15%) to 22.7M tonnes, accompanied by increases in the average grades for zinc, lead and silver (at 5% Zn base case cut-off grade). At the same time, while Indicated Resources increased at the cost of Inferred Resources, the 2017 drilling also added about 2.5M tonnes of new Inferred Resources, primarily in the northwestern portion of the deposit. Likewise, confidence in the resource has increased, with the resource comprising 75% in the Indicated category and 25% in Inferred, compared with 71% and 29%, previously. Drilling has now delineated a continuous zone of 100m-spaced drill holes over an area measuring roughly 1,200m along strike by about 500m along the dip plane of the deposit. The updated resource includes the results of 8 new drill intercepts from the successful 2017 drill program which totaled 4,700m. CZX notes that the 2017 drilling extended the limit of the mineral resource up- and down-dip and along strike to the north. The resource occurs as a continuous zone, potentially amenable to underground mining. The potentially economic portion of the deposit averages ~20m in thickness over a strike length of 1.3km, and extends to a depth of at least 800m. The deposit remains largely open at depth and along strike. Looking Ahead: CZX expects to receive results from metallurgical test work on drill core samples from the 2017 drill program (initially on a global composite representing the average resource) in Q118. A smaller sub-set of samples are also being evaluated using a variability assessment. It is important to note that relatively little previous metallurgical test work has been completed at the project. The test work is focused on using heavy media pre-concentration followed by conventional flotation processes to recover zinc and lead into concentrates. The metallurgical test results and updated resource estimate will form the basis of a PEA study expected in Q218. Metallurgy: Sixteen composites (430kg) derived from the 2017 drilling and representing the Hangingwall, Main Cardiac Creek, and Footwall zones are being used in ongoing metallurgical testing aimed at determining the materials amenability to heavy media pre-concentration followed by conventional flotation to recover lead and zinc into saleable concentrates. The tests are being completed by Base Metallurgical Laboratories Ltd., under the direction of Tom Shouldice, P.Eng., Principal Metallurgist. A total of 16 composites from five drill holes were prepared, totalling ~430kg of material. CZX currently trades at an EV/lb Zn-eqiv. (M&I Resources) of US$0.008/lb, compared with select peers averaging US$0.036/lb. Based on total resources (M,I&I), CZX trades at US$0.006/lb, compared with US$0.021/lb (Exhibit 3). About Canada Zinc Metals Corp. (TSX.V : CZX ; Frankfurt: A0RAQJ ) Canada Zinc Metals is a mineral exploration company focused on unlocking the potential of a future long life mining district in British Columbia, Canada. The Company is the dominant land holder in the Kechika Trough, a world class mineral belt, which hosts in excess of 80 million tonnes of base metal resources. Canada Zinc Metals owns a total of 79,780 hectares in 230 mineral claims which extend northwestward from the Akie property for a distance of 140 km. The Company has outlined a NI 43-101 compliant mineral resource at its flagship Akie property, including an indicated resource of 22.7 million tonnes grading 8.3% zinc, 1.6% lead and 14.1 g/t silver (at a 5% zinc cut-off grade) and an inferred resource of 7.5 million tonnes grading 7.0% zinc, 1.2% lead and 12.0 g/t silver (at a 5% zinc cut-off grade). Using this estimate, the deposit contains 4.2 billion pounds of zinc, 804 million pounds of lead and 10.3 million ounces of silver in the indicated category, and 1.2 billion pounds of zinc, 205 million pounds of lead and 2.9 million ounces of silver in the inferred category (at 5% zinc cut-off). The deposit remains open along strike and at depth. 5% zinc cut-off grade Contained metal: Category Tonnes (million) Zn (%) Pb (%) Ag (g/t) Zn (B lbs) Pb (B lbs) Ag (M oz) Indicated 22.7 8.32 1.61 14.1 4.162 0.804 10.3 Inferred 7.5 7.04 1.24 12.0 1.169 0.205 2.9 Tongling Nonferrous Metals Group, Jintuo (Canada) Investment Co. Ltd, Teck Resources and Korea Zinc are significant shareholders of the Company. Teck Resources and Korea Zinc have also entered into an option agreement with Canada Zinc Metals in relation to 3 of the Company's Kechika Regional Properties.