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Drill program underway at Prairie Creek
Canadian Zinc hopes to find additional mineral resources at Casket Creek

Roxanna Thompson
Northern News Services
Published Thursday, July 28, 2011

DEH CHO
Canadian Zinc Corporation is continuing a diamond drill program at Prairie Creek Mine this summer with the goal of finding additional mineral resources at the site.

NNSL photo/graphic

Canadian Zinc Corporation is using one of its diamond drill rigs to look for additional mineral resources at the Prairie Creek Mine site this summer. The company is drilling to a depth exceeding 1,600 metres in the Casket Creek area, two kilometres away from previously defined mineral resources, with the goal of reaching a mineralized vein. - photo courtesy of Canadian Zinc

Last year Canadian Zinc drilled to a depth of approximately 1,557 metres at Casket Creek, approximately two kilometres from the previously defined mineral resources at the site and around five kilometres from the mine.

The company started drilling a hole in the same area last August specifically to locate the mineral vein within the geological formation, said Alan Taylor, Canadian Zinc's vice-president of exploration. The drill reached a depth of 400 metres before work stopped in late October because of the weather.

This year the company is continuing to drill the hole and plans to reach beyond a depth of 1,600 metres. A total of $2.5 million is being spent on exploration this year at Prairie Creek, Taylor said.

The drilling will allow the company to remove a core of rock that will be examined and sampled for minerals. If the mineralization vein is located, the "implications are huge," said Taylor.

The site, 90 km from Nahanni Butte, is home to measured and indicated resources totaling 5.8 million tonnes with 9.9 per cent lead, 10.7 per cent zinc, 0.32 per cent copper and 161 grams per tonne of silver.

There is an additional inferred 5.5 million tonnes of 11.4 per cent lead, 13.5 per cent zinc, 0.51 copper and 214 grams per tonne of silver.

With its known resources, the mine currently has an estimated life span of 20 years. Finding mineral resources at Casket Creek could potentially double the mine life, Taylor said.

As of July 25, the drill had reached a depth of approximately 1,400 metres. The deeper the drill goes, the slower the progress is, he said.

The project has also been slowed because of the company's difficulty in finding qualified drillers.

"They're in demand this year," said Taylor.

As a result of the two factors, the drill is currently moving approximately 50 metres deeper every day.

A second drill rig is also being operated closer to the mine. At that location the company is looking for shallower resources that are still undefined.

Employment

Between 15 and 20 people are at the mine site this summer. In addition to the drill teams there are also staff working on site, equipment and mine maintenance and water treatment.

Canadian Zinc is expected to spend a total of $5 million this year on activities related to Prairie Creek Mine, including the permitting process.

From June 22 to 24, the Mackenzie Valley Environmental Impact Review Board held community and public hearings in Nahanni Butte and Fort Simpson on the environmental assessment for the mine.

The review board has since decided that it will close the public registry for the assessment on Sept. 9. Following the closure, the board will deliberate on its decision.

Taylor said Canadian Zinc is pleased to see the board applying some timelines to the permitting process.

"We hope all the parties can adhere to the timelines and we can get this thing done," he said.

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