14 September 2016
Vancouver, British Columbia, September 14, 2016 - Canadian Zinc Corporation (TSX:CZN; OTCQB: CZICF) reports that, as part of its ongoing financing and concentrate marketing activities for its 100% owned Prairie Creek lead, zinc, silver mine in the Northwest Territories, the Company has identified an error in the life-of-mine economic model included in its 2016 Preliminary Feasibility Study.
The error caused an overstatement in gross smelter revenue to $3.7 billion from $3.3 billion, over the projected 17-year life of the Prairie Creek Mine. The gross metal value of production (using the same assumptions) remains unchanged. The overestimation resulted from the inclusion in the economic model of smelter revenue for bi-product metals in primary concentrates that may not be payable, depending on final concentrate contract terms.
All other inputs into the economic model and all technical aspects of the 2016 Preliminary Feasibility Study (“PFS”) remain unchanged, including all mineral resource and reserve estimates, mining plans and production rates and estimates of capital and operating costs and assumptions on concentrate treatment charges and penalties. However, royalties and taxes payable also reduce by $153 million over the projected life of the mine, partially offsetting the impact of lower revenue.