VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/20/13 -- Canadian Zinc Corporation (TSX: CZN)(OTCQB: CZICF) (the "Company" or "Canadian Zinc") reports its financial results for the year ended December 31, 2012.
This press release should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2012, and management's discussion & analysis ("MD&A") for the year ended December 31, 2012, both available on SEDAR at www.sedar.com.
Financial Results for Fiscal 2012
For the year ended December 31, 2012, the Company reported a net loss and comprehensive loss of $19,870,000 compared to a net loss and comprehensive loss of $33,362,000 for the year ended December 31, 2011.
The net loss in the year ended December 31, 2012 included a mark-to-market loss of $8,804,000 on the Company's marketable securities in Vatukoula Gold Mines, compared to mark-to-market loss of $25,693,000 for the comparative year of 2011. Excluding the loss on the marketable securities, the Company recorded a loss of $11,066,000 for the year ended December 31, 2012 compared to a similar loss of $7,669,000 the previous year.
At December 31, 2012, the Company had a positive working capital balance of $9,042,000 including cash and cash equivalents of $224,000, short term investments of $5,458,000 and marketable securities of $4,984,000 (for a total of $10,666,000).
Prairie Creek Mine
During 2012, Canadian Zinc invested $9,037,000 on its exploration and evaluation programs at Prairie Creek compared to $5,489,000 for the year ended December 31, 2011. The overall increase in expenditures at the Prairie Creek Mine site relates primarily to the increased expenditures related to the diamond drilling program, associated camp operation costs, completion of a Preliminary Feasibility Study ("PFS"), ongoing permitting and initiation of various mine planning activities.
A new independent Mineral Resource statement completed in June 2012 by AMC Mining Consultants (Canada) Ltd. reported 5.43 million tonnes of Measured and Indicated Mineral Resources with an average grade 10.8% Zn, 10.2% Pb, 0.31% Cu and 160 g/t Ag and in addition, 6.24 million tonnes of Inferred Mineral Resources with an average grade of 14.5% Zn, 11.5% Pb, 0.57% Cu and 229 g/t Ag.
A PFS completed by SNC-Lavalin Inc. in June 2012 generated economic parameters to convert the new Measured and Indicated Mineral Resources to Proven and Probable Mineral Reserves. The new Mineral Reserves at Prairie Creek Property were estimated by Barrie Hancock P. Eng. at 5.22 million tonnes averaging 9.4% Zn, 9.5% Pb, and 151 g/t Ag. The PFS indicates a pre-tax net present value of $253 million using an 8% discount, with an internal rate of return of 40.4% and payback period of 3 years. The Proven and Probable Mineral Reserve is capable of supporting a mine life of 11 years at the planned milling rate of 1,000 tonnes per day. In addition the significant tonnage of Inferred Resource is expected to add to the mine life once more detailed definition drilling is carried out.
A new National Instrument ("NI") 43-101 Technical Report entitled "Prairie Creek Property Northwest Territories, Canada Technical Report for Canadian Zinc Corporation", Qualified Persons J. M. Shannon, P. Geo., AMC Mining Consultants Ltd.; D. Nussipakynova, P. Geo., AMC Mining Consultants Ltd.; JB Hancock, P. Eng., Barrie Hancock & Associates Inc.; and B MacLean, P. Eng., SNC-Lavalin Inc. and dated June 15, 2012 was filed on SEDAR.
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