Drillholes LM13-76, 77 and 78 tested the south extension to the Lemarchant deposit. The drilling intersected favourable felsic volcanic stratigraphy with locally anomalous base metal mineralization below the overlying mafic volcanic rocks.
Drillholes LM13-79 and 80 tested the up-dip extension to the Lemarchant deposit. Drillhole LM13-79 intersected massive sulphide mineralization 35 metres up-dip of a 2011 drillhole (LM11-72) which intersected 0.47% Cu, 0.48% Pb, 5.02% Zn and 12.82 g/t Ag over 3.7 metres. The new drillhole, LM13-79 intersected a thicker, higher grade interval of mineralization grading 0.55% Cu, 1.35% Pb, 5.14% Zn, 58.86 g/t Ag and 0.22 g/t Au over 11.4 metres.
Drillhole LM08-52E was designed to test the down-dip extension of the Lemarchant main zone mineralization within the fault displaced lower felsic block stratigraphy. The 251 metres extension to the 2008 drillhole (from 319-570 metres) remained in "hangingwall" mafic volcanic rocks that are interpreted to overly the lower felsic block stratigraphy.
Drillhole LM13-81 was an initial test of the north target area, a magnetic high anomaly similar to that occurring over the Lemarchant main zone deposit. The near vertical 455 metre drillhole remained in mafic volcanic rock over its entire length.
Canadian Zinc and its 100%-owned subsidiary Paragon Minerals Corporation would like to recognize the Government of Newfoundland and Labrador for its continued support of the South Tally Pond project through a financial contribution from the Government's Junior Exploration Assistance Program.
South Tally Pond Project
The South Tally Pond project is a significant 100%-owned, land position covering 214 km2 of a highly prospective volcanogenic massive sulphide ("VMS") geological belt in central Newfoundland. The Lemarchant Deposit, the most advanced target on the South Tally Pond property, is situated 20 km southwest of Teck Resources Limited's Duck Pond copper-zinc Mine and Mill complex in the same geological belt.
Previous drilling by Paragon Minerals Corporation (now a 100% owned subsidiary of Canadian Zinc) at the Lemarchant Deposit has outlined a significant precious metal-rich copper-lead-zinc VMS deposit with excellent potential to develop into a viable economic resource. An initial National Instrument ("NI") 43-101 mineral resource estimate was completed in January 2012 on the Lemarchant Deposit and includes the following mineral resources:
-- Indicated Mineral Resource: 1.24 million tonnes grading 5.38% zinc, 0.58% copper, 1.19% lead, 1.01 g/t gold and 59.17 g/t silver (15.40% ZnEQ) using a 7.5% zinc equivalent grade cut-off.-- Inferred Mineral Resource: 1.34 million tonnes grading 3.70% zinc, 0.41% copper, 0.86% lead, 1.00 g/t gold and 50.41 g/t silver (11.97% ZnEQ) using a 7.5% zinc equivalent grade cut-off.
(See Technical Report and Mineral Resource Estimate on the Lemarchant Deposit, South Tally Pond VMS Project, Central Newfoundland, Canada, dated March 2, 2012 filed on SEDAR under Paragon Minerals Corporation).
About Canadian Zinc
Canadian Zinc is a Toronto-listed exploration and development company. The Company's key project is the 100%-owned Prairie Creek zinc, silver and lead project located in the Northwest Territories, Canada. The Prairie Creek Project contains a Mineral Reserve of 5.2 million tonnes averaging 9.4% zinc, 9.5% lead and 151 g/t silver. In addition, Prairie Creek hosts an Inferred Resource of 6.2 million tonnes averaging 14.5% zinc, 11.5% lead, 0.57% copper and 229 g/t silver. (AMC Mining Consultants (Canada) Ltd. J M Shannon and D Nussipakynova, Qualified Persons, June 2012).