ME2018: ZincX Resources Corp.
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Last updated 11/1/2018 at 9:38am
ZincX Resources Corp.
The Aurora Borealis illuminates core boxes stacked up at the Akie property, one of eleven of ZincX Resources' property blocks spanning some 40 kilometers (85 miles) of the Kechika SEDEX belt in northeastern B.C.
Canada Zinc Metals Corp. changed its name to ZincX Resources Corp. in May, part of a rebranding initiative to highlight and distinguish the explorer in the expanding junior zinc space.
ZincX owns zinc-lead-silver properties that blanket 79,870 hectares (197,359 acres) of the Kechika SEDEX (sedimentary exhalative) belt in northeastern British Columbia.
The rebranded company has divided this land package into two projects – Akie, which hosts the Cardiac Creek deposit, and the Kechika regional, a series of property blocks that blanket roughly 140 kilometers (85 miles) of the Kechika SEDEX belt in northeastern B.C.
In June, the company published a preliminary economic assessment for Cardiac Creek that contemplates a 4,000-metric-ton-per-day underground mine providing ore for a 3,000-metric-ton-per-day mill that is expected to produce 3.27 billion pounds of zinc and 362 million lb of lead over an initial 18-year mine life.
This is based on the current Cardiac Creek deposit, which hosts 22.7 million metric tons of indicated resource averaging 8.32 percent (4.16 billion lb) zinc, 1.61 percent (804 million lb) lead and 14.1 grams per metric ton (10.3 million ounces) silver; and 7.5 million metric tons of inferred resource averaging 7.04 percent (1.17 billion lb) zinc; 1.24 percent (205 million lb) lead and 12 g/t (2.9 million oz) silver.
The initial capital expenditures to develop this operation are estimated to run C$302.3 million, which includes C$45.7 million in contingency.
With a net present value (7 percent discount) of C$401 million, an internal rate of 27 percent and a 2.6-year payback period, all after-tax, the economics of this mine are compelling.
With the PEA in-hand, ZincX is now working with consultants to identify the most cost-effective and efficient development of Cardiac Creek, which will inform a pre-feasibility study for the zinc mine project.
ZincX is examining cost-effective means to conduct a planned and permitted two-year underground drill program designed primarily to upgrade the Cardiac Creek resource.
Cardiac Creek remains open at depth, and the company said significant upside remains as grades seem to be improving with depth.
A 2,013-meter drill program carried out this year investigated the Sitka showing, an undrilled prospect east of Cardiac Creek; North Lead zone, located roughly 3,000 meters northwest of the deposit; and the southeastern strike extents of Cardiac Creek.
ZincX Resources continues to carry out baseline environmental studies as it looks to advance this zinc project through pre-feasibility, feasibility and into permitting.
The company is also investigating the district-scale potential of its expansive zinc property in northern British Columbia.
-SHANE LASLEY
ZincX Resources Corp. - TSX.V: ZNX
Chairman President and CEO: Peeyush Varshney
VP, Exploration: Ken MacDonald
Exploration Manager: Nicholas Johnson
Ste. 2050 - 1055 West Georgia St., PO Box 11121, Royal Centre, Vancouver, BC V6E 3P3
Tel: 604-684-2181
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