Mr. Peeyush Varshney reports
ZINCX RESOURCES BEGINS CREW MOBILIZATION FOR 2019 DRILL PROGRAM AT AKIE
Zincx Resources Corp.'s exploration crew has begun mobilizing personnel and a diamond drill to the Akie project. The company is now executing on its planned 2,500-metre large-diameter HQ diamond drilling program that will focus on the Cardiac Creek deposit and build on the positive and robust results from the 2018 preliminary economic assessment (PEA).
2019 drill objectives
The 2019 exploration program will focus on the central high-grade core of the deposit targeting the initial five years of future mine production identified in the PEA. The program will aim to:
- Provide additional close-spaced drill intercepts to increase confidence in the current resource model;
- Extend the high-grade core of the deposit farther to the southeast.
The 2019 drilling program will also allow for the collection of key technical data including:
- The collection of geotechnical and geomechanical data to improve the understanding of the rock mass characteristics of the deposit and provide advanced engineering data for future underground mine design;
- The continuing collection of structural data to assess ground support requirements and provide input data for stope dimensions.
The 2019 exploration drill program will commence shortly and is expected be complete by early fall.
In addition to the exploration program, the company has submitted detailed plans to the Ministry of Energy, Mines & Petroleum Resources to permit a surface geotechnical and hydrogeological program to confirm site selection for key mine infrastructure areas identified in the PEA. The referral process is currently under way and the company expects a favourable response shortly.
The Akie Zn-Pb-Ag project
The 100-per-cent-owned Akie property is situated within the Kechika trough, the southernmost area of the regionally extensive Paleozoic Selwyn basin and one of the most prolific sedimentary basins in the world for the occurrence of sedex (sedimentary exhalative) zinc-lead-silver and stratiform barite deposits.
Drilling on the Akie property by Zincx Resources (formerly Canada Zinc Metals Corp.) since 2005 has identified a significant body of baritic-zinc-lead sedex mineralization known as the Cardiac Creek deposit. The deposit is hosted by siliceous, carbonaceous, fine-grained clastic rocks of the Middle to Late Devonian Gunsteel formation.
With additional drilling completed in 2018, the company updated the estimate of mineral resources at Cardiac Creek in 2018, as shown in the associated table.
5% Zn cut-off grade Contained metal
Category Tonnes Zn Pb Ag Zn Pb Ag
(million) (%) (%) (g/t) (b lb) (b lb) (m oz)
Indicated 22.7 8.32 1.61 14.1 4.162 0.804 10.3
Inferred 7.5 7.04 1.24 12.0 1.169 0.205 2.9
The company announced robust positive results from the 2018 preliminary economic assessment (PEA). The PEA envisages a conventional underground mine and concentrator operation with an average production rate of 4,000 tonnes per day. The mine will have an 18-year life with potential to extend the life of mine (LOM) through resource expansion at depth. Key parameters for the PEA are shown in the associated table.
Parameter Base case (1)
Tonnes mined 25.8 Mt
Mined head grades 7.6% Zn; 1.5% Pb; 13.08 g/t Ag
Tonnes milled 19.7 Mt
Milled head grades (after
DMS (2) upgrade) 10.0% Zn; 1.9% Pb; 17.17 g/t Ag
Total payable metal (LOM) $3,960M
Initial capex $302.3M including $45.7M contingency
LOM total capex $617.9M including $58.5M contingency
All-in total opex $102.4 per tonne milled
Pretax NPV7% $649M
Pretax IRR 35%
Pretax payback 2.6 years
After-tax NPV7% $401M
After-tax IRR 27%
After-tax payback 3.2 years
(1) The base case used metal prices are calculated from the three-year
trailing average coupled with two-year forward projection of the average
price; and are: $1.21 (U.S.)/pound for zinc, $1 (U.S.)/pound for lead and
$16.95 (U.S.)/pound for silver. A Canadian/U.S. dollar exchange rate of
0.77 was used. The NPV discount rate is 7 per cent.
(2) DMS: dense media separation.
The PEA is considered preliminary in nature and includes mineral resources, including inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized.
Kechika regional project
In addition to the Akie project, the company owns 100 per cent of eight of 11 large, contiguous property blocks that comprise the Kechika regional project including the advanced Mount Alcock prospect. The Kechika regional project also includes the Pie, Yuen and Cirque East properties within which the company maintains a significant 49-per-cent interest with partners Teck Resources Ltd. and Korea Zinc Co. Ltd. These properties collectively extend northwest from the Akie property for approximately 140 kilometres covering the highly prospective Gunsteel formation shale; the main host rock for known sedex zinc-lead-silver deposits in the Kechika trough of northeastern British Columbia. These projects are located approximately 260 kilometres north-northwest of the town of Mackenzie, B.C.
Ken MacDonald, PGeo, vice-president of exploration for the company, is the designated qualified person as defined by National Instrument 43-101 and is responsible for the technical information contained in this release.
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