Akie and Kechika Regional Projects May 2012

Transcription

1 Akie and Kechika Regional Projects May 2012

2 Legal Disclaimer This presentation contains forward looking statements; including in particular, statements about Canada Zinc Metals Corp. s s plans, strategies and prospects. These have been based on the Company's current assumptions, expectations and projections about future events. Although the Company believes that the expectations reflected in these forward looking statements are reasonable, the Company can give no assurance that these expectations will prove to be correct or that the results anticipated in the forward looking statements will be achieved. These forward looking statements include risks and uncertainties, which relate to, amongst other things, market conditions, industry uncertainty and other such factors which may cause the Company s s actual results to be materially different.

3 Corporate Summary Dominant landholder in British Columbia s highly prospective zinc-lead-silver Kechika District; host to several base metal deposits and numerous targets World class setting (total > 80 million tonnes) Working Capital Issued & Outstanding Options Warrants $15 M M 7.78 M M 52 week low/high range $0.335/$0.60 Key shareholders: Tongling Nonferrous Metals Group ~ 35% Lundin Mining ~ 5.0% Owns 100% of 29 million tonne deposit Akie is advanced stage Located next to Teck & Korea Zinc s Cirque deposit Significant new discovery potential

4 Management & Directors Mr. Peeyush Varshney, LL.B. - CEO & Chairman Principal and Director of Varshney Capital Corp., director or officer of several public companies including Mountain Province Diamonds Inc. (TSX:MPV). Mr. Praveen Varshney, C.A. CFO & Director Principal and Director of Varshney Capital Corp., director or officer of several public companies including Bayswater Uranium Corporation (TSX.V: BYU) and Mexigold Corp. (TSX.V: MAU). Mr. Henry Giegerich, P. Eng. - Mining Engineer Independent Director From 1982 to 1987, Pres. & GM of Cominco Alaska Inc., responsible for the development of the Red Dog Mine. Dr. John Thomas, Ph.D Metallurgist - Independent Director Extensive project management experience; VP Operations of other publicly listed junior mining companies. Mr. Marco Strub, Portfolio Manager Independent Director From 1997 to 2003 was a partner of Exulta AG and is currently a principal of Sircon AG. Mr. Ken MacDonald, P. Geo. VP Exploration Over 23 years of experience; from early stage exploration to completion of feasibility studies. Recently responsible for all mine permitting for the Mt. Milligan copper-gold project in B.C. Mr. Nicholas Johnson, B.Sc.H (Queens 2001) Project Manager Experience as UG exploration geologist at Goldcorp s Red Lake mine and also employed by Watts Griffis & Mcouat and Bema Gold. Mr. Gilbert Graham Logistics Manager Over 29 years field experience in senior (Cominco, Anaconda) and junior exploration companies internationally.

5 Zinc = Infrastructure Metal Zinc is the third most-used nonferrous metal in the world, after aluminum and copper It is employed primarily as a coating on iron and steel to protect against corrosion used in buildings, bridges, railways and automobiles zinc is an infrastructure metal As the global economic recovery progresses over the next few years continued to be led by China, India and other emerging economies and a recovery in the USA a corresponding increase in the demand for zinc is expected to put upward pressure on global zinc prices Looming chronic shortage of supply of zinc is being forecasted. The coincidental closure of major zinc mines (Brunswick, Lisheen, Century, Skorpion) through depletion in the near future coupled with a very limited number of new zinc mines in the development pipeline is expected to lead to robust zinc price.

6 Opportunity March Scotia Bank, Toronto, Canada: Zinc may represent the next big base metal play. Zinc will shift into deficit' (at latest by 2014) due to ongoing demand growth in the face of significant global mine depletion in mid-decade. In 2013, the closure of the Brunswick mine in Canada, Century in Australia and Vedanta's Lisheen mine in Ireland will shift sentiment towards zinc, with prices rallying in anticipation of tightening supplies. In the second half of this decade, zinc demand will be boosted by a recovery in G7 construction activity, particularly in the USA April Salman Partners of Vancouver, British Columbia, Canada: looking out a few years we believe that a series of mine closures should lead to shortages of zinc mining capacity and an absolute shortage of zinc metal. Salman Partners suggest how investors can play the imminent shortage of zinc and list Canada Zinc Metals as one of the few alternatives for the development of zinc resources. Recently, the firm commented: We believe that, beginning next year, the world faces an increasing shortage of zinc mines. The opening up of the Akie district could help Canada make an important contribution to alleviating such a shortage. Similar statements about the upcoming shortage of mine supply and zinc inventories being drawn down below critical levels have been made by RBC Capital Markets, Credit Suisse and Goldman Sachs. April 2012 Brook Hunt (research group): Zinc has the most promising fundamental outlook among the metals The zinc price is expected to be rangebound for the most part of this year before starting its ascent towards the end of 2012 in anticipation of a tight market. Brook Hunt expects the zinc price to average US$1.24/lb in 2014 and steadily climb thereafter, possibly challenging the previous high of US$2.08/lb that was reached in late 2006.

7 AKIE Zn+Pb+Ag PROPERTY

8 Location and Infrastructure Akie is in NE British Columbia 260 km NNW of Mackenzie 450 km NNW of Prince George Full road access to the Cardiac Creek deposit and the planned portal area Existing highway and railway access at Mackenzie Government supports development BC s largest hydroelectric power source is 160 km SE Deep sea port at Prince Rupert and zinc smelter at Trail, BC

9 Akie Property and Kechika Regional Mineral Tenure Akie Property:125 km 2 (yellow) Kechika Regional: km 2 (red) CZX 100% Ownership Overlies 140 km of permissive Gunsteel Formation Secure Tenure to Dec ,754 hectares in BC s highly prospective Kechika Zn-Pb-Ag SEDEX belt Belt hosts several base metal deposits (Akie, Cirque, Driftpile) & numerous targets

10 2011 Kechika Project PIE Property Gunsteel FM Shale Iron Seeps

11 2011 Kechika Project WEST PIE Property Gunsteel FM Shale Iron Gossan Iron Seep

12 Akie Property Work completed by CZX Diamond drilling: 31,059 m/60 holes NI Indicated and Inferred resource estimate prepared Road/trail construction 14.7 km Construction of 50 person trailer camp & core facility Environmental baseline studies (2007- ongoing) Regional exploration (2006 ongoing) Geotechnical & Groundwater Drilling

13 2011 Achievements Infill and step out drilling (6 holes 3,450 meters) at Cardiac Creek Zone massive sulphides were hit, significant intersections. Drilling (6 holes 2,200 meters) on SE & NW extensions to the Cardiac Creek deposit. Continuity of SEDEX mineralized horizon shown. Received Underground Exploration permit for Akie property. Initiated surface work construction program clearing trail and road to the proposed portal site. Trail construction to portal Detailed geological mapping and geochemical sampling on several Kechika regional properties. Established drill ready targets at Pie and Mt. Alcock.

14 Resource Outline - Longsection

15 Cross Section 3300

16 Multiple Wide High Grade Intercepts Hole # Int (m) Zn+Pb (%)

17 Resource Calculation (based on drill results through 2011) Cut Off Grade % Zinc Tonnes (000 s) Zinc (%) Lead (%) Silver (g/t) Combined Zn + Pb (%) Zinc Metal tonnes (000 s) Lead Metal tonnes (000 s) Silver ounces (000 s) INDICATED 2 20, , , , , , , , , , , , , , INFERRED 2 48, , , , , , , , , , , , , , , ,122 Notes: (1)Estimate based on drilling results inclusive to 2011 data (2)Average width of deposit is estimated at 20 metres

18 Gross In-Situ Metal Metric tonnes Zn Cut-off Grade Average Grade Gross Contained Metals Indicated 12.7 Million 5% Zinc 8.38% Lead 1.68% Silver 13.7 g/t Zinc 2.35 billion lbs Lead 0.47 billion lbs Silver 5.60 million oz Inferred 16.3 Million 5% Zinc 7.38% Lead 1.34% Silver 11.6 g/t Zinc 2.65 billion lbs Lead 0.48 billion lbs Silver 6.05 million oz Metal Prices: Zinc US$0.90/lb Lead US$0.85/lb Silver US$25.00/oz

19 North Lead Anomaly Large lead in soil anomaly (200 x 1000m): Overlies Gunsteel Formation High Pb/Zn (soils) ratios 2.2 km north of nearest hole (A-08-60A) in CCD Cardiac Creek Deposit Drilling to date: Inmet 1996: 11.60% Zn, 9.05% Pb Strong pyrite, sphalerite and galena replacement in FW carb. Possible Vent Complex

20 Northwest Extension Drilling took place in this area for the first time in m along strike from the Cardiac Creek deposit First hole assayed 1.17m of 2.69% Zn, 0.6% Ni and 4.4g per tonne Ag Interval is also anomalous in gold, lead, copper, molybdenum, antimony, phosphorus, vanadium, thallium and other elements Very interesting results possible discovery of a new style of mineralization

21 Mt. Alcock Property Geology similar to Cardiac Creek, Cirque and Driftpile Historical Drill Results: 8.8m grading 9.3% Zn+Pb (inc. 3.6m grading 14.2% Zn+Pb)

22 Kechika Project Mt. Alcock Property Large barite SEDEX Kill Zone 1989 Drilling: % Zn + Pb & 1.2 oz/t Ag

23 Value Drivers Akie is one of the largest undeveloped zinc-lead deposits in the world and is attracting the interest of several large base metal mining companies with Tongling Nonferrous Metals and Lundin Mining already invested A dominating highly prospective land position in the district with a strong likelihood of discovery of additional deposits Company is well funded $15 million in working capital Program being planned includes underground development and drilling to move towards completion of feasibility level studies Infrastructure in the area is relatively advanced Regional claims - considering spinout of properties into another publically traded vehicle for the benefit of existing CZX shareholders or other transactions to unlock value Looming chronic shortage of zinc is being forecasted. The coincidental closure of major zinc mines through depletion in the near future coupled with very limited new mine developments is leading to very bullish views on zinc

24 Canada Zinc Metals Corp. Please contact us at: West Georgia St. PO Box 11121, Royal Centre Vancouver, BC, Canada V6E 3P3 T: TF: E: W: