Cnadian Zinc June Presentation
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Transcript of Cnadian Zinc June Presentation
ANNUAL GENERAL MEETINGANNUAL GENERAL MEETINGJUNE 16JUNE 16THTH, 2010, 2010,,
10am, 3010am, 30thth Floor , 650 West Georgia Street,Floor , 650 West Georgia Street,Vancouver, British Columbia Vancouver, British Columbia
June 16/2010www.canadianzinc.com
Some of the statements in this presentation are forward-looking statements and as such are based on an assumed set of the geological and economic conditions and planned courses of action. These include
ti t f i l f t d ti l l d destimates of mineral resources, future production levels and grades, expectations regarding mine production costs, expected trends in mineral prices and statements that describe Canadian Zinc Corporation’s future plans, objectives or goals.
There is a significant risk that actual results will vary, perhaps materially, from results projected depending on such factors as changes in general economic conditions and financial markets, changes in prices for silver, zinc and lead metals technological and operational hazards in miningzinc and lead metals, technological and operational hazards in mining and mine development activities, uncertainties inherent in the calculation of mineral reserves, mineral resources and metal recoveries, the timing and availability of financing, regulatory, governmental and other permitting approvals, labour relations and other risk factors listed from time to time in Canadian Zinc Corporation’s Annual Information Form.
Canadian Zinc Corporation does NOT yet hold a permit for the operation of the Prairie Creek Mine.
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65Approximate Scale
0 50 100 150
Proposed Naats'ihch'ohNational Park Reserves
Mackenzie R
iv
Kilometers
AREAOF
MAP
PRAIRIE CREEK MINE River
Root River
iver Wrigley
N. Nahanni
S. N
ahanniR
iver
MAP
CANTUNGMINE Yellowknife
Fort Simpson
Flat River
Great SlaveLake
Mackenzie RiverWinter R
NahanniNational ParkResevre
Trout Lake
Liard River
Proposed NNPRExpansion BoundryOption 1 - Sept 2007Watson Lake Fort Providence
Jean Marie RiverRoad
Nahanni Butte
YUKON TERRITO
Enterprise
Trout Lake
Liard River
Trout LakeFort LiardHay River
ERRITORY
NORTHWEST TERRITORIES
AL
BRITISH COLUMBIA
Fort Nelson
Wood BuffaloNational Park12
0
ALBERTA
1928 1928 -- Original discoveryOriginal discovery
1960’s 1960’s -- Discovery and underground development of Discovery and underground development of M i Z b d t bli h t fM i Z b d t bli h t fMain Zone began and establishment of campMain Zone began and establishment of camp
1979 to 1982 1979 to 1982 -- Hunt Brothers Cadillac Exploration, mine Hunt Brothers Cadillac Exploration, mine site infrastructure setup, road to Liard Highway site infrastructure setup, road to Liard Highway established, Feasibility Study completed and fullyestablished, Feasibility Study completed and fullyestablished, Feasibility Study completed and fully established, Feasibility Study completed and fully permittedpermitted
1982 1982 -- Silver price collapses and Cadillac entered into Silver price collapses and Cadillac entered into bankruptcy 3 months prior to mine production bankruptcy 3 months prior to mine production
1992 to 1993 1992 to 1993 -- San Andreas options property and fully San Andreas options property and fully acquires Prairie Creekacquires Prairie Creek
19991999 -- San Andreas name change to Canadian ZincSan Andreas name change to Canadian Zinc 1999 1999 San Andreas name change to Canadian ZincSan Andreas name change to Canadian Zinc
2000 to 2008 2000 to 2008 -- CZN exploration and development CZN exploration and development programsprograms
20082008 Application forApplication for Operations referred to EAOperations referred to EA 2008 2008 -- Application for Application for Operations referred to EAOperations referred to EA
2009/10 2009/10 –– In EA processIn EA process
3 LEVELS OF UG3 LEVELS OF UG
WINTER ROAD TO LIARDWINTER ROAD TO LIARD
3000 FOOT AIRSTRIP3000 FOOT AIRSTRIP
HOLDING PONDHOLDING POND1000 TPD MILL1000 TPD MILL
ACCOMMODATIONSACCOMMODATIONS
WORKSHOPS, OFFICEWORKSHOPS, OFFICE
FUEL FARM
Grab Sample: 820 g/t Ag,10% Zn, 16% Pb, 3.5% Cu
Sam Trench Results: 1.52m @20% Zn, 13% Pb, 219g/t Ag
Rico Trench Results: 1.1m @18% Zn, 35%Pb, 242g/t Ag
Zinc in Soil anomaly Gat
e Fa
ult Prairie C
reek
Previous surveys indicate
2MAIN ZONE:Prairie Creek
Minesite3
ystrong geochemicalanomalies between MainZone and Rico
PRAIRIE CREEKPROPERTY TENURE:
6 Mining Claims8 Mining Leases
5
6
7
DDH 95-124: 5.5m @7.5% Zn, 2%Pb, 49g/t Ag
DDH 94-064: 2.1m @21% Zn, 9%Pb, 192g/t Ag
DDH 95-103: 2.0m @29% Zn, 13%Pb, 73g/t Ag
4
16 km PC F
ault
DDH 06-170: 10.13m @
8 Mining Leases2 Surface LeasesTotal 9,163 Ha.
8
9
10
11
12Mi li d Z
CZN Claims & Leases
@6% Zn, 9%Pb, 113g/t Ag
Trenching, drilling and undergroungwork done by previous operators inZones 7 through 12 to be followed upby CZN exploration campaigns.
Mineralized Zones
Project PotentialProject Potentialjj
ProposedDeepHoleHole
Project PotentialProject Potentialjj
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TYPE RESOURCE CATEGORY TONNES Pb (%) Zn (%) Ag (g/t) Cu (%)MAIN QUARTZ VEIN (MQV) Measured 938,624 11.63 13.11 211.89 0.465
Indicated 2,944,862 12.67 11.16 212.39 0.472
M + I 3,883,486 12.42 11.63 212.27 0.470
Inferred 5,516,297 11.46 13.55 215.53 0.516
STRATABOUND (SB) Measured 611,417 6.68 10.85 67.55 ‐
Indicated 663,261 5.53 10.15 61.99 ‐
M + I 1,274,678 6.08 10.49 64.66 ‐
Inferred 21,234 5.65 10.49 55.71 ‐
Measured 1,550,041 9.68 12.22 155.0 0.282
Indicated 3 608 123 11 36 10 97 184 7 0 385Indicated 3,608,123 11.36 10.97 184.7 0.385
MQV + SB M + I 5,158,164 10.85 11.35 175.8 0.354Inferred 5,537,531 11.44 13.54 214.9 0.514
STOCKWORK Indicated 682,165 2.68 5.85 50.15 0.112
Inferred 4,045 2.51 5.54 51.31 0.126
TOTALS Measured 1,550,041 9.68 12.22 154.95 0.282
Indicated 4,290,288 9.98 10.16 163.34 0.342
M + I 5,840,329 9.90 10.71 161.12 0.326
Source: Minefill Service, Inc. 2007, 43-101 compliant
Inferred 5,541,576 11.43 13.53 214.80 0.514
Mill Flotation Circuit
700 hp ball mill700 hp ball mill1000 tpd flotation cellsThickener tanksLarox filtersTo Install: Paste backfill plant & Pb ox circuit Produce Pb and Zn Cons
Replacement: 1500 kw CAT Replacement: 1500 kw CAT GeneratorGenerator
TANK FARMTANK FARM
Mill Powerhouse
Upgraded with new fuel efficient and low emission diesel generators
Glycol heating system
Transfer Facilities Ice Bridge
Figure 5 4:
River
M
N. Nahanni Highway
1 TRANSPORTFigure 5.4:
PRAIRIE CREEK MINE;HAULAGE ROUTE
Fort Simpson
Flat River
Mackenzie RiverAccess R
S. Naha
AREAOF
PRAIRIE CREEK MINE
Mackenzie Highway
Jean Marie River
s Road
hanni
River
Nahanni Butte
MAP
Checkpoint
126 Km
175 KmHighway
35
Highway
7
Nahanni Butte
Mackenzie Highw
Trout Lake
Liar
d R
iver
Fort Providence
120
YUKON
93 Km224 Km Highway
1Highway
7
Nahanni ButteRoad Junction(Liard Transfer Facility)
ghway
Liar
d H
ighw
ay(N
T)
Mackenzie Highway Hay RiverEnterpriseNahanni Butte
PRAIRIE CREEKMINE SITE
Whitehorse
YellowknifeYUKONTERRITORY
NORTHWEST TERRITORIES
Enterprise
L
Trout Lake
60
Fort LiardHay River
NORTHWEST TERRITORIES
YUKON TERRITORY
B
38 Km
104 Km
Highway
1
Highway
2
L
enzie
High
way
Fort Nelson
BRITISHCOLUMBIA ALBERTA
Skagway
Alaska
Approximate Scale
ES
ALBERTA
BRITISH COLUMBIA
Railway
Legend136 Km
Highway
77
Hig
hway
(BC
)
Mac
ke
Edmonton
Prince Rupert Flin Flon,Manitoba
Japan, KoreaChina, Europe
Prince George
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Fort Nelson
Approximate Scale
Kilometres0 50 100 150
RailwayHaulage RouteRoadway
BordersWatercourse
(CN Railhead)36 Km
Highway
35
Highway
97
Liar
d
Alaskan Highway
TrailVancouver
U.S.A.Railways
Roadways
Calgary
Kilometers0 50 100 250
Approximate Scale
Karstlands in the Ram Plateau
PROPOSED WASTE ROCK FACILITY
Diversion Drain
ad
175 Metres at 1025 m Elevation
1% Slope
Div
ersi
on D
rainHaul Road
Mid Slope Bench
2:1 Slope
Mid Slope Bench(985 m Elevation)
CollectionPond Berm
Monitoring WellMine Complex
750 metresWater Flow
Solid Waste Facility
Waste Rock Outline (500,000 m3 Capacity)
Legend
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Harrison CreekLined Sediment Pond (970 m Elevation)
Inert Debris (100,000 m3 Capacity)
C t h teMill
WaterTreatment
Plant
Prairie Creek Mine: Conceptual View
CreekMine & Stockpile
CatchmentPond
ewage
MineMine
Mi
SewageTreatment
Plant
Cell B Prairie CreeSewag
Catchment BackMill
Medial Dykeress
Maximum Wate
Fill
Medial Dyke
But
tr
Cell A
ater Level
Mill
P d W tProposed WaterStorage Pond
Operations similar to the original 1982 permit utilizing existing Operations similar to the original 1982 permit utilizing existing infrastructure with efficiency upgrades that provide further infrastructure with efficiency upgrades that provide further environmental mitigationenvironmental mitigationenvironmental mitigationenvironmental mitigation
Up to 1,300 tonnes/day underground cutUp to 1,300 tonnes/day underground cut--andand--fill miningfill mining Up to 950 tonnes/day crushing/grinding/flotation process with Up to 950 tonnes/day crushing/grinding/flotation process with
addition of DMS plant and utilize the waste flotation tailings product addition of DMS plant and utilize the waste flotation tailings product in underground paste backfillin underground paste backfill
Conversion of tailings pond facility into a Water Storage PondConversion of tailings pond facility into a Water Storage Pond Production of zinc and lead concentrates (80Production of zinc and lead concentrates (80--120,000t/yr)120,000t/yr) Creation of a Waste Rock FacilityCreation of a Waste Rock Facility Transport bagged Zn & Pb concentrate by truck to Fort NelsonTransport bagged Zn & Pb concentrate by truck to Fort Nelson Transport bagged Zn & Pb concentrate by truck to Fort Nelson Transport bagged Zn & Pb concentrate by truck to Fort Nelson
railhead via 2 Transfer Stations on a winter road basisrailhead via 2 Transfer Stations on a winter road basis Working in collaboration with local First Nations and NNPRWorking in collaboration with local First Nations and NNPR
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The Mine was fully permitted in 1982 for operationsThe Mine was fully permitted in 1982 for operations During the course of further exploration and development (post During the course of further exploration and development (post
1982) the Prairie Creek Mine has received 15 permits/licenses to 1982) the Prairie Creek Mine has received 15 permits/licenses to support such activitiessupport such activitiesA li ti f O ti P it b itt d J 11 2008 hi hA li ti f O ti P it b itt d J 11 2008 hi h Application for Operating Permit submitted June 11, 2008 which Application for Operating Permit submitted June 11, 2008 which included Water License and 3 LUPsincluded Water License and 3 LUPs
Applications referred to EA under the MVEIRB August 8, 2008 Applications referred to EA under the MVEIRB August 8, 2008 due to public concerndue to public concerndue to public concerndue to public concern
Final Terms of Reference and Work Plan Issued by MVRB June, Final Terms of Reference and Work Plan Issued by MVRB June, 20092009
In response to the Terms of Reference CZN compiled aIn response to the Terms of Reference CZN compiled a In response to the Terms of Reference, CZN compiled a In response to the Terms of Reference, CZN compiled a Developers Assessment Report which was deemed by the MVRB Developers Assessment Report which was deemed by the MVRB to be in conformity enabling the EA to continue to the next phaseto be in conformity enabling the EA to continue to the next phase
MVRB also issued a new Work Plan which indicates the closureMVRB also issued a new Work Plan which indicates the closureMVRB also issued a new Work Plan which indicates the closure MVRB also issued a new Work Plan which indicates the closure of the public registry for this EA to occur by year end 2010 of the public registry for this EA to occur by year end 2010
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1212
1 2
56
7
91011
34
6
8
Upgraded Mine Facilities:
131415
Upg aded e ac t es
1 - Water Storage Pond - Cell A 5 - Staff Accommodation Block 9 - DMS Plant (Attached to Mill) 13 - Acid Storage Tanks2 - Water Storage Pond - Cell B 6 - Ore Stockpile Lined Pad 10 - Temporary Float Storage Pile 14 - Bagging Plant3 - Reagent Storage Sheds 7 - 2nd 870 Underground Portal 11 - Paste Backfill Plant (Attached to Mill) 15 - Cement Storage Shed4 - Water Treatment Plant 8 - Concentrate Storage Shed 12 - Waste Rock Pile
Canadian Zinc owns 17% interestRevitalized mining strategy
Targeting 100,000 oz gold per year
23
Fiji Fiji –– Pacific RimPacific RimV t k l (VGM)Lihi (LGL)Ok T di (OTML) Vatukoula (VGM)11 Million Ounces
Lihir (LGL)41 Million Ounces
Ok Tedi (OTML)14.4 Million Ounces
Porgera (Barrick)10 Million Ounces FIJI
Tuvatu
Macraes (Oceana Gold)8 Million Ounces
24
8 Million Ounces
Tonnes Grade Contained Metalmillion gms gold / tonne Gold (million ounces)
ReservesProven 0.4 15.2 0.19Probable 1.5 9.8 0.49
Total Mineral Reserve 1.9 10.9 0.68
Mineral ResourcesVatukoula Underground
Measured 4.0 11.1 1.4Indicated 4.3 9.9 1.4Inferred 4.7 8.6 1.3
Sub Total 13.0 4.1
Vatukoula TailingsMeasured 4.5 1.5 0.2Indicated 0.7 1.3 0.03
Total Mineral Resources 18.2 7.3 4.3
25
VGM REGIONALEXPLORATION POTENTIALEXPLORATION POTENTIAL
26
Canadian Zinc owns 11% interest
Advanced Zinc lead Explorationp
Adjacent to Red Dog Mine AlaskaAdjacent to Red Dog Mine Alaska
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CANADIAN ZINC CANADIAN ZINC CORPORATIONCORPORATIONCORPORATIONCORPORATION
Listings on:Listings on:Toronto Stock Exchange Toronto Stock Exchange –– CZNCZN
OTCBB OTCBB –– CZICFCZICFFrankfurt Stock Exchange : SRSFrankfurt Stock Exchange : SRS
Common Shares:Common Shares: 118,900,563 (June 16/10)118,900,563 (June 16/10)Common Shares: Common Shares: 118,900,563 (June 16/10)118,900,563 (June 16/10)Fully Diluted: Fully Diluted: 127,990,563 (June 16/10)127,990,563 (June 16/10)
Working Capital: Working Capital: $6 $6 millionmillionN d btN d btNo debtNo debt
Suite 1710Suite 1710--650 West Georgia Street, 650 West Georgia Street, PO Box 11644 PO Box 11644 Vancouver, BC, V6C 1G8Vancouver, BC, V6C 1G8
SuiteSuite 700700--220220 BayBay Street,Street,Toronto,Toronto, ONON MM55JJ 22WW44TelTel:: ((416416 )) 362362--66866686
Tel: (604) 688Tel: (604) 688--2001 2001 Fax: (604) 688Fax: (604) 688--20432043Tollfree:1Tollfree:1--866866--688688--20012001
FaxFax:: ((416416)) 368368--53445344
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