Thursday, March 15, 2012

China M&A: Canada Zinc Metals Corp - Akie Property Updated Resource Estimate czx.v , lun.to, tnr.v, ilc.v, bwr.to, cs.to, imn.to, ncu.to, tko.to, wrn.to, qux.to, rio, bls.to, tck


  Canada Zinc Metals is breaking out to the Upside with the new update resources estimate for the Akie deposit.

"Highlights of the updated mineral resource are as follows:
  • Indicated resource of 12.7 million tonnes of 8.38 % Zn, 1.68% Pb & 13.7 g/t Ag at 5% Zn cut-off
  • Inferred resource of 16.3 million tonnes of 7.38% Zn, 1.34% Pb & 11.6 g/t Ag at 5% Zn cut-off
  • 23% increase in overall tonnage compared to the previous (2008) estimate
  • Upgrade of 44% of the total resource into the indicated category"


China M&A: Canada Zinc Metals Desjardins research from PDAC 2012 

 Desjardins Capital Markets came out with interesting research note on Canada Zinc Metals, company has posted the new presentation and looks like very busy with the next stage of development. More and more investment banks are talking about the very promising potential for Zinc market in the nearest future.

From Haywood Securities:

March 5, 2012

Morning Shot…
Today’s Speakers:
Stefan Ioannou: PDAC Commodity Talks Summary
Yesterday's PDAC agenda included the commodity outlook session. Overall zinc stood out as the metal with most (medium-term; +2013) potential - in line with our published commentary. Nickel is arguably also an ‘interesting’ longer-term story. Key metal specific notes / 'take-aways' include:
Zinc (Andy Roebuck; Teck)
·         Very bullish outlook expected to materialize through 2013 on the back of imminent large scale mine closures (including Brunswick [~2% of global supply] and Century (~4% of global supply]).
·         Chinese demand expected to increase materially as middle class ‘develops’ / demands higher quality products (i.e., galvanized autos, etc.).
·         Zinc treatment charges (TCs) now at ~US$60/DMT (vs. +200/DMT ‘historically’ [less than 2 years ago]) – note recent Glencore/Trevali transaction underpinned by ‘nil’ TCs.



Desjardins Capital Research:

Mines, Metals & Fertilizers Weekly
PDAC—three companies that generated interest

AQM Copper—gearing up for a preliminary economic assessment at the Zafranal copper project in Peru 

Canada Zinc Metals—close to infrastructure and in a neighbourhood of zinc assets in BC 

Intrepid Mines—large copper-gold project in Indonesia

Prospectors & Developers Association of Canada (PDAC) annual conference in Toronto

This week, the world of base and precious metals, bulk commodities and industrial products gathered in Toronto for the annual PDAC conference. Attendance appears to have set a new record (estimated 28,000–30,000) and included investors, producers, consumers, merchants, financial institutions and research groups. Needless to say, Desjardins Capital Markets was there in force.

Several companies appeared to be experiencing higher-than-average attendance at their presentation booth and were the topic of numerous conversations. These companies include:

 AQM Copper Inc. 

 Canada Zinc Metals Corp. 

 Intrepid Mines Limited

We do not cover these companies and offer no opinion on their shares.

Canada Zinc Metals Corp. (CZX, TSX-V, not rated)

 Shares outstanding: 136.3m 
 Market capitalization: C$66.8m 
 Project name: Akie 
 Commodity: Zinc-lead 
 Project location: British Columbia 
 Identified resource: 23.6mtonnesoforegrading 7.6%zinc,1.5%lead and13.0g/t silver   
 Contained resource:1.8mtonnesofzincmetal,354,000tonnesofleadmetaland8.9mozsofsilver 
 Management: Peeyush Varshney, CEO&Chairman

Key asset overview

Canada Zinc Metals is developing its 100%-owned Akie zinc project in northeastern British Columbia. The project is located 260km from the town of Mackenzie and 450km from the port of Prince Rupert (see Exhibit 2).



Exhibit 2: Location of Akie zinc project and local infrastructure

Source: Company website

Resources. According to an NI 43-101 report filed in May 2008 and with a zinc cutoff grade of 5%, the Akie property hosts 23.6m tonnes of ore at an average zinc grade of 7.6%, an average lead grade of 1.5% and an average silver grade of 13.0g/t. Thus, the Akie property hosts 1.8m tonnes of zinc metal, 354,000 tonnes of lead metal and 8.9m ozs of silver. This resource estimate was calculated through 31,059 metres of diamond drilling of 60 different drill holes. A cross section of the deposit is shown in Exhibit 3.

Location and infrastructure. The Akie project is located beside a number of mineral exploration properties and operating mines, including the Driftpile Creek lead-zinc deposit and the Kemess South Mine.

As can be seen in Exhibit 2, the W.A.C. Bennett hydroelectric dam (capacity 2.7GW/yr), owned and operated by BC Hydro, is located close to the project, as are Canadian National Railway’s rail lines that lead to the port of Prince Rupert. The Akie site is also served by an all-season road.



Catalysts. A new NI 43-101 report is expected to be released “in the next few weeks”, according to Canada Zinc Metals, which should upgrade the current resources to the measured and indicated category.

Major investors. According to the company, Lundin Mining Corporation (LUN, TSX, not rated) and China Tongling Nonferrous Metals Group Holdings Co. Ltd. own ~36% and ~5% of the company, respectively.


China M&A: Canada Zinc Metals : Bob Moriarty: Think Zinc

Bob Moriarty is taking Canada Zinc Metals as a client - company is going to tell its story now to the wide mining investing audience, normally we should expect visit to the property and more articles to come.
   Canada Zinc Metals has reported recently the number of solid results from its exploration program on Cardiac Creek Deposit. Chinese Copper and Zinc giant Tongling Non Ferrous holds a 36% stake in the company now and Canada Zinc has announced that PEA is ongoing on the project. Another significant shareholder in this emerging M&A story in Canada is Lundin Mining.


M&A Watch in Canada: Canada Zinc Metals: Drilling Intersects 14.54% Zinc + Lead over 8.5 metres in A-11-98 on the Cardiac Creek Deposit. 

 Canada Zinc Metals is very well positioned now to participate in further consolidation in the industry, number of Zinc mines will be coming off line in the nearest future and the player, who can consolidate and unlock this region with Teck Resources and Korea Zinc holdings involved, will benefit the most.

China M&A in Canada: Canada Zinc Metals: Drilling Intersects 10.62% Zinc + Lead over 10.31 metres in A-11-93 on the Cardiac Creek Deposit 

"Canada Zinc Metals has come out with another great exploration results, deposit has all chances to grow further.  Stock was moving Up strongly from the recent lows couple of months ago fueled by this drill program expectations and constant rumours about Chinese consolidation. Chinese giant Tongling Nonferrous holds 36% in the company and the only question left is when they will move to increase their stake. Lundin Mining keeps all its options open with the strategic stake in the company - these two companies can easily make this Canadian region play into one of the largest Zinc and Lead mines in the world. We can talk about the magnitude of 100 million tons Zinc and Lead above 5% grade combined after consolidating the Korea Zinc and Teck Resources J/V property in the region.
   In our small interconnected world Canada Zinc Metals holds strategic stake in TNR Gold with its Lithium, Rare Earths and, now - Iron Ore projects. The most intriguing part is Los Azules litigation TNR Gold vs Minera Andes with more than Half of this "Big Copper deposit in Argentina" at stake now. One day, after Canada Zinc Metals acquisition, Chinese Tongling can be knocking together with TNR Gold on the Minera Andes and US Gold door after their merger.



Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advise on this blog and there is no solicitation to buy or sell any particular company here. Always consult with your qualified financial adviser before making any investment decisions.



Canada Zinc Metals Corp - Akie Property Updated Resource Estimate

Wednesday , 14 Mar 2012 Canada Zinc Metals Corp.
Vancouver, British Columbia CANADA, March 14, 2012 /FSC/ - Canada Zinc Metals Corp. (CZX - TSX Venture), is pleased to announce the results of an updated National Instrument 43-101-compliant resource estimate for its 100% owned Akie property, host to the Cardiac Creek SEDEX Zn-Pb-Ag deposit, located approximately 260 kilometers north-northwest of the town of Mackenzie, in northeastern British Columbia, Canada.
Highlights of the updated mineral resource are as follows:
  • Indicated resource of 12.7 million tonnes of 8.38 % Zn, 1.68% Pb & 13.7 g/t Ag at 5% Zn cut-off
  • Inferred resource of 16.3 million tonnes of 7.38% Zn, 1.34% Pb & 11.6 g/t Ag at 5% Zn cut-off
  • 23% increase in overall tonnage compared to the previous (2008) estimate
  • Upgrade of 44% of the total resource into the indicated category
The updated resource adds drilling conducted since 2008, including over 6,000 meters drilled in 2011. There are now a total of 108 drill holes on the Akie property with a total core length of 46,043 metres.  Of these, 78 holes, totalling 36,021 metres, are within the proximity of the block model and contribute to the estimation of the mineral resource.  The remaining 30 drill holes test the zone over a total strike length of almost 7 kilometres, or test other exploration targets on the property.
The previous resource estimate was described in a Technical Report dated May 28, 2008 (available on www.sedar.com) and outlined a NI 43-101 compliant inferred resource of 23.6 million tonnes grading 7.6% zinc, 1.5% lead and 13.0 g/t silver (at a 5% zinc cut-off grade). There have been three drilling campaigns completed on the property since the May 2008 report that have added considerably to the understanding of the deposit.
The Cardiac Creek deposit exhibits properties typical of a sedimentary exhalative (Sedex) deposit, common in this area of BC.  The deposit occurs as a planar sheet-like zone of semi-massive to massive sulphides comprised of varying amounts of pyrite, sphalerite and galena (+/- barite) which has been traced over a strike length of at least 7 kilometers and to a depth of 1,300 metres below surface.  The mineralized zone averages about 20 metres (true) thickness in the area of potential economic interest.
The Cardiac Creek deposit mineral resources are summarized at a series of zinc cut-off grades for comparison purposes in the table below.  Highlighted in the table is the "base case" cut-off grade of 5% Zn which is considered reasonable based on assumptions derived from operations with similar characteristics, scale and location. Note that the resource, at the 5% Zn base case cut-off, occurs as a continuous zone, which is favourable with respect to selectivity and other factors, when considering possible mining options.  The current resource extends to a maximum depth of 800 metres below surface. 
The updated resource is tabulated below.
CARDIAC CREEK DEPOSIT: MINERAL RESOURCE SUMMARY
-***-
----------------------------------------------------------
Cut-off Grade   Ktonnes  Zn(%)  Pb(%)  Ag(gpt) Combined Zn
(Zn %)                                            + Pb (%)
----------------------------------------------------------
Indicated
2                20,088   6.59   1.31    11.2         7.90
3                17,683   7.15   1.43    12.0         8.58
4                15,195   7.75   1.56    12.8         9.31
5                12,731   8.38   1.68    13.7        10.06
6                10,342   9.05   1.81    14.6        10.86
7                 7,798   9.89   1.98    15.6        11.87
----------------------------------------------------------
Inferred
2                48,102   4.62   0.83     8.1         5.63
3                33,016   5.61   1.02     9.4         6.63
4                23,278   6.50   1.19    10.5         7.69
5                16,287   7.38   1.34    11.6         8.72
6                11,026   8.28   1.50    12.5         9.78
7                 7,092   9.29   1.67    13.7        10.96
----------------------------------------------------------
-****-
  1. "Base case" cut-off grade of 5% Zn highlighted in table
  2. Mineral resources are not mineral reserves as the economic viability has not been demonstrated
Additional drilling since 2008 has added over 5.4 million tonnes of resources at the base case cut-off grade of 5% zinc. Infill drilling has also improved the confidence in the resource and allowed the reclassification of 12.7 million tonnes of inferred material at a 5% Zn cut-off to the indicated category. A significant reason for the increase of the resource and reclassification of the resource to the indicated category is a result of recent drilling that has expanded the resource at depth and to the southeast.
The deposit remains open at depth, up-dip and along strike.  Further delineation and exploration drilling is being considered using underground drilling stations located in the footwall of the deposit on the 950m elevation. All permitting and engineering designs are complete and in hand in order to commence the underground drill program.
"We are very pleased with the progress made over the previous drill campaigns," commented Mr. Ken MacDonald, Vice President of Exploration for Canada Zinc Metals Corp. "This resource update confirms our belief that the Cardiac Creek deposit holds significant potential for expansion. We have now upgraded more than half of the original inferred resource into the indicated category and drilling at closer spacing yields an improvement in tonnage and similar grades over the previous model estimate.
We believe that Cardiac Creek is one of the largest independent zinc development projects in the world, and we are committed to advancing the orderly development of the project through to final feasibility. We plan to continue aggressive drilling to expand the existing resource, beginning in the spring of 2012."
About the Akie Property:
The Akie zinc-lead property is situated within the southernmost area (Kechika Trough) of the regionally extensive Paleozoic Selwyn Basin, one of the most prolific sedimentary basins in the world for the occurrence of SEDEX zinc-lead-silver and stratiform barite deposits.
Drilling on the Akie property by Inmet Mining Corporation during the period 1994 to 1996 and by Canada Zinc Metals since 2005 has identified a significant body of baritic-zinc-lead SEDEX mineralization (Cardiac Creek deposit).  The deposit is hosted by siliceous, carbonaceous, fine-grained clastic rocks of the Middle to Late Devonian Gunsteel Formation.
Two similar deposits, Cirque and Cirque South Cirque, located some 20 kilometers northwest of Akie and owned under a joint venture by Teck Resources and Korea Zinc, are also hosted by Gunsteel Formation rocks and have a combined geologic inventory in excess of 50 million tonnes (not 43-101 compliant) grading approximately 10% combined Zn+Pb.
In addition to the Akie property, Canada Zinc Metals Corp. controls a large contiguous group of claims which comprise the Kechika Regional project. These claims are underlain by geology identical to that on the Akie property (Cardiac Creek deposit) and Cirque. This project includes the 100% owned Mt. Alcock property, which has yielded a historic drill intercept of 8.8 metres grading 9.3% Zn+Pb, numerous zinc-lead-barite occurrences, and several regional base metal anomalies.
The mineral resource estimate was prepared under the direction of Robert Sim, P.Geo with the assistance of Bruce Davis, FAusIMM.  Mr. Sim is the independent Qualified Person within the meaning of NI 43-101 for the purposes of mineral resource estimates contained in this release. The resources have been classified and are reported, as required by NI43-101, according to the CIM standards on Mineral Resources and Reserves. The company is currently revising their 43-101 compliant Technical Report and will file within the mandated 45 -day period.
Ken MacDonald P.Geo., Vice President of Exploration, is the designated Qualified Person as defined by National Instrument 43-101 and is responsible for the technical information contained in this release.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
ON BEHALF OF THE BOARD OF DIRECTORS
CANADA ZINC METALS CORP.
PEEYUSH VARSHNEY, LL.B
CEO & CHAIRMAN




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