Drills hit at Prairie Creek

Vancouver — Results from the first hole in the latest round of drilling on the Prairie Creek base metal property in the Northwest Territories has confirmed the high-grade nature of Zone 3 for operator Canadian Zinc (CZN-T).

Part of a planned 6-hole program of infill work, hole 130 cut two zones of high-grade mineralization. The first was hit at 256.1 metres down-hole, returning 6.4% lead, 8.3% zinc and 0.17% copper, plus 90.9 grams silver per tonne, over 14.2 metres. Lower down, at 290.1 metres, the hole cut 31.9 metres grading 11.5% lead, 5.4% zinc, 0.06% copper and 116.7 grams silver.

The current resource, hosted in Zone 3, is pegged at 11.8 million tonnes grading 12.5% zinc, 10.1% lead, 0.4% copper and 161 grams silver. The measured and indicated portion of the resource is set at 3.6 million tonnes grading 11.8% zinc, 9.7% lead, 0.3% copper and 142 grams silver. The resource was calculated by Mineral Resource Development in 1998 and was based on 32,000 metres of diamond drilling in more than 60 holes.

Zone 3 represents a portion of a sub-vertical, high-grade vein structure that has been tested over a strike length of 2.2 km. More recent drilling, in 1992, identified deeper stratiform mineralization, about 200 metres below the current mine workings. The vein deposit remains open to the north and south, within a 16-km corridor of prospective ground. Canadian Zinc hopes to find additional vein and stratabound mineralization.

The company is seeking additional permits, which, if granted, would allow the company to drill a further 50-60 drill holes, as well as operate a 1-tonne-per-hour pilot plant within the existing mill. Plans also call for an underground decline, which would provide a fresh sample of mineralization underneath the existing 2.5 km of underground workings, while serving as a platform for additional drilling.

The junior intends to complete a bankable feasibility study by the end of 2002, with startup slated for the following year.

The mine and mill at Prairie Creek were built in 1982 at a cost of more than $100 million in today’s dollars. The mine was permitted but never operated.