KINNGAIT/CAPE DORSET
Canadian Zinc Corporation has issued a resource update on its Prairie Creek mine, where it is currently carrying out an underground diamond drill program.

Canadian Zinc recently issued a resource update on its Prairie Creek Mine, pictured here. The company has noted more indicated resources and is confident about financing, which it sees as a key milestone ahead. - photo courtesy of Canadian Zinc Corporation

The update includes results from its ongoing optimization as well as details on additional drilling and underground sampling not included in previous estimates.

It indicates there is more zinc, lead and silver than previously measured in June 2012.

In that prior study, the total amount of indicated resources (that is, noted with a high measure of confidence) was 3,731,000 tonnes. In March, that number of tonnes of indicated mineral resources rose to 5,309,000.

The company's vice-president of corporate development, Steve Dawson, said the resource update is part of a lot of work being done and before a key milestone up ahead.

"We are revising the mine plan. We've got a new block model that was done by our mining consultant, CNC Mining, and we're in the process of investigating opportunities of where the concentrate might actually be sold," he told News/North. "Once that's over, we'll look at financing the project."

Prior to the start of the exploration program, the company carried out an underground rehabilitation program in the fourth quarter of last year. They did this by dewatering and re-installing electrical and ventilation services to a 650-metre long decline tunnel. After this was completed, diamond drilling began from underground drill stations located at the end of the tunnel. Dawson said the major difference between the recent update and the pre-feasibility study from 2012 is the increased amount of indicated tonnage. That number, along with an updated capital cost assessment, will frame what the company need in terms of financing.

"Zinc seems to be one of those commodities that people seem to think is poised for a rebound and certainly we're hoping the timing of the project will take advantage of that situation," Dawson said. "I'd say it's not a long way off but it is also contingent on the market being interested in financing it as well."

However, he admitted the mood at the recent Prospector's and Developer Association of Canada conference in Toronto as fairly somber.

"I think the industry on a whole is finding it very difficult to finance projects," Dawson said.

Still, he said updated financial information will give Canadian Zinc the most current and best forecast for the Prairie Creek operation going forward.

"I don't think this is a slam dunk by any stretch of the imagination," he said, "but at the same point and time there could be -- I think -- windows for financing opportunities open."

And while Dawson said optimistic was too strong of a description, he's confident his company is in a good position relative to the competition.

"We have everything open to us in terms of possibilities. We'll just have to wait and see."