Prairie Creek Minesite
Numerous site development and exploration programs were undertaken at the Prairie Creek Mine site during 2012 including geotechnical assessments and engineering details of various surface facilities, including the winter road route.
The 2012 exploration diamond drilling program completed a total of 5,629 metres of drilling was completed. The deep-hole diamond drill exploration program at Casket Creek intersected 5% Pb and 11% Zn over 3.5 metres. A total of 2,182 metres over two drillholes (with wedging) was completed.
A total of 3,366 metres over nine holes were drilled at the Minesite and partly within the defined resource. Seven holes were completed in 2012, six of which intersected significant mineralization and many with multiple intercepts.
Drillhole PC-12-216 returned the highest grades of silver ever reported from a drillhole on the Prairie Creek property with an intercept of 1.3 metres grading 2,059 g/t or 60 oz./ton Ag. The same hole also returned a combined grade of 51.3% lead and zinc over a different intercept of 1.0 metre. Many other intercepts returned multi-ounce silver assays with high lead and zinc values.
A surface geophysical program involving both electromagnetic ("EM") and gravity surveys was also completed on a small part of the Prairie Creek property in the proximity of the mine in August 2012. Interpreted results indicate a strong multi-channel EM anomaly, with coincident gravity anomaly, centered over a previously undrilled area immediately west of the existing underground workings. Further analysis of this anomaly is underway.
Aboriginal Training Programs at Prairie Creek Minesite
In a major new initiative following up on the signing of two Impact Benefit Agreements, Canadian Zinc launched four significant onsite aboriginal training programs at the Prairie Creek Mine Site this year. These training programs were undertaken with assistance from the Federal Government, Human Resources and Skills Development Canada, in the $4.2 million "More Than a Silver Lining" aboriginal training program, specifically for the Prairie Creek Mine, administered by the NWT Mine Training Society and assisted by the Government of the Northwest Territories ("GNWT").
Collaboration Agreement Signed with Government of the Northwest Territories
In August 2012, Canadian Zinc and the GNWT Department of Transportation signed a Collaboration Agreement to ensure effective co-operation related to the public transportation infrastructure that will support the Prairie Creek Mine project and will help ensure that both public needs and mine activities are supported.
Paragon Minerals Corporation
On September 24, 2012, Canadian Zinc acquired all of the outstanding common shares of Paragon in exchange for common shares of Canadian Zinc on the basis of 0.136 of a share of Canadian Zinc for each share of Paragon.
Paragon's primary project is its 100% interest in the South Tally Pond Property, which includes the Lemarchant deposit, and is located in a proven mining district near Buchans, Newfoundland. An initial NI 43-101 mineral resource estimate that was recently completed by Paragon in March 2012, on the Lemarchant deposit includes the following defined mineral resources:
-- Indicated resource estimate: 1.24 million tonnes at an average grade of 5.38% Zn, 0.58% Cu, 1.19% Pb, 1.10 g/t Au and 59.17 g/t Ag; and-- Inferred resource estimate: 1.34 million tonnes at an average grade of 3.70% Zn, 0.41% Cu, 0.86% Pb, 1.00 g/t Au and 50.41 g/t Ag.