Road Land Use Permits (Operations)
In January 2013 Land Use Permit MV2012F007 ("LUP") was issued for a period of five years, and permits the construction, maintenance, operation and use of the winter road connecting the Prairie Creek Mine to the Liard Highway which is under the jurisdiction of the Water Board (Crown Land). This permit allows the outbound transportation of the zinc and lead concentrates to be produced at the mine and the inbound transportation of fuel and other supplies during the actual operation of the Prairie Creek Mine. The newly issued road permit incorporates realignment of the original route which will improve access and further reduce potential environmental impact.
At the same time the Water Board also issued a Type "B" Water Licence (MV2012L1-0005), valid for a period of seven years commencing January 10, 2013, which permits the limited use of water and disposal of waste for road construction, maintenance, and operational activities.
The Company has made separate applications to Parks Canada for a new LUP and water licence for the re-aligned route of the road that lies within the Nahanni National Park Reserve. On April 5, 2013 the Company received a Draft Land Use Permit and Draft Water Licence from Parks Canada.
Diamond Drill Land Use Permit (Exploration)
On April 25, 2013, Canadian Zinc received Land Use Permit (LUP MC2013C0002) which will enable the company to complete further surface exploration diamond drilling throughout the Prairie Creek Property. The LUP is valid for a five year period until April 25, 2018.
Prairie Creek Site Engineering Studies
SNC-Lavalin Inc. continued with engineering studies including detailed process design within the mill complex including electrical, piping, civil, mechanical and structural design. Further site design was completed and advancing access road details which included alignment studies, crossing structures, geotechnical, transfer facility designs and construction planning. Preliminary packages were prepared for request for quotes on long-lead items. With the continued long permitting time engineering and procurement activity was tapered back to minimum by end of this quarter.
South Tally Pond (Newfoundland) 2013 Drill Program
A total of 11 drillholes (3,370 metres), including two drillhole extensions, were completed at the Lemarchant deposit on the Company's South Tally Pond project in central Newfoundland. Full details of the drilling can be obtained from news releases dated February 27, 2013 and April 17, 2013. Highlights of the drill program include:
-- New massive sulphide mineralization discovered 250 metres to the northwest of the Lemarchant deposit in drillholes LM13-73 and LM13-74;-- Significant massive sulphide mineralization intersected in drillhole LM13-79 which extends the Lemarchant deposit mineralization 35 metres up-dip; and-- Three drillholes testing the south extension to the Lemarchant deposit intersected favourable felsic volcanic stratigraphy with locally anomalous base metal mineralization.
The drilling program ended in late March and the Company is now incorporating the new data into a revised model and planning for a follow-up drill program later in the year. The future drilling will continue to target the expansion of the Lemarchant deposit.
Canadian Zinc's continued focus for 2013 will be to advance the Prairie Creek permit applications through the final regulatory phase to the issue of permits for construction and subsequent production. Approval and issue of the Water Licence and Land Use Permits is expected by mid-year.