VANCOUVER, BC / ACCESSWIRE / August 19, 2024 / ZincX Resources Corp. ("ZincX" or the "Company", (TSX Venture Exchange:ZNX)(FRA:A2JLRM) is pleased to report that ZincX and Teck Resources Limited ("Teck") have entered into an agreement whereby Teck will conduct advanced metallurgical test work on select drill core from the Company's 100% owned Cardiac Creek deposit on the Akie project, located in northeastern British Columbia.
Under the agreement, Teck's metallurgical representatives have mobilized to the Akie camp to examine and select drill core for the purposes of Teck conducting metallurgical test work.
The selected samples will be tested either at Teck's research facility in Trail, British Columbia; or at a third-party facility to be determined by Teck. The metallurgical test work, to be at Teck's sole expense, is planned to be completed by November 30, 2024.
In exchange, ZincX grants to Teck the right to use the metallurgical data to advance their understanding of Cardiac Creek metallurgy and recoveries from previous metallurgical testing completed by ZincX.
It is expected to take up to 12 weeks to complete the testing after the samples are shipped. A technical report of the results will require up to an additional four weeks to complete.
President and CEO Peeyush Varshney stated, "We are pleased with Teck's continued and growing interest in ZincX's Cardiac Creek deposit. I'm confident the metallurgical test work conducted by Teck will further advance the merits of the project. The world-class SEDEX zinc-lead-silver endowment of the Cardiac Creek (Akie) deposit and the Cirque project (50% Teck; 50% Korea Zinc Co., Ltd.) carry significant potential for resource development in the Kechika Trough region."
ZincX Resources Corp. (TSXV:ZNX)(US:ZNCXF)(FRA:M9R) is a Canadian exploration and development company creating value in the critical metals space - with a focus on zinc. Zinc is a versatile and essential material for the energy transition to a lower-carbon economy. It is already one of the most used metals in the world behind iron, aluminum and copper but also has applications in energy storage. It also plays a vital role in enabling other clean energy technologies like solar and wind.
ZincX Resources is well-positioned to take advantage of the worldwide looming shortfall in zinc production with the development of its Cardiac Creek (Akie property) deposit - which can help Canada meet its need for the critical mineral zinc and the global push towards decarbonization to combat climate change.
The Akie Zn-Pb-Ag Project
The 100% 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 zinc-lead-silver and stratiform barite deposits.
Drilling on the Akie property by ZincX Resources 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.
The Company updated the estimate of mineral resources at Cardiac Creek in 20181, as follows:
5% Zinc Cut-Off Grade | Contained Metal: | ||||||
Category | Tonnes | Zn (%) | Pb (%) | Ag (g/t) | Zn (B lbs) | Pb (B lbs) | Ag (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)1. 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 as follows:
Parameter | Base Case1 |
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 DMS2 upgrade) | 10.0% Zn; 1.9% Pb; 17.17 g/t Ag |
Total Payable Metal (LOM) | $3,960M3 |
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 |
Pre-Tax NPV7% | $649M |
Pre-Tax IRR | 35% |
Pre-Tax Payback | 2.6 years |
After-Tax NPV7% | $401M |
After-Tax IRR | 27% |
After-Tax Payback | 3.2 years |
1. For details and QP statements, see technical report entitled "NI 43-101 Technical Report Akie Project British Columbia, Canada" prepared by JDS Energy & Mining Inc. and filed on https://www.sedarplus.ca/ on August 2, 2028, and News Release dated August 2, 2018.
The base case used metal prices are calculated from the 3-year trailing average coupled with two year forward projection of the average price; and are: US$1.21/lb for zinc, US$1.00/lb for lead and US$16.95 for silver. A CDN$/US$ exchange rate of 0.77 was used. The NPV discount rate is 7%. 2. DMS = dense media separation. 3. All dollar amounts expressed in Canadian dollars.
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% of eight of eleven large, contiguous property blocks that comprise the Kechika Regional Project including the advanced Mt. Alcock prospect. The remaining three contiguous blocks (Pie, Yuen and Cirque East) are owned 49% by ZNX and 51% by Cirque Operating Corporation which is a 50/50 joint venture between Teck and Korea Zinc Co., Ltd. Six additional blocks which constitute the Kechika North project have been optioned to an arm's length third party. All of 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. The Kechika Trough represents tremendous potential for additional discoveries. These properties are located approximately 260 kilometres north-northwest of the town of Mackenzie, British Columbia, Canada.
Zinc (Zn)
Zinc is one of many critical metals facilitating the transition to a low-carbon and greener future and is used in renewable energy storage systems and through the protection of steel to improve its durability and service life in solar and wind turbine applications. The primary uses of zinc are the galvanization of steel protecting against corrosion due to weather conditions, the production of brass and bronze, and in die-casting to produce a wide range of metal products. In agriculture, zinc can also increase crop yields and crop quality and is an essential nutrient in human development and disease prevention.
Ken MacDonald P.Geo., 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. Mike Makarenko P.Eng, JDS Energy and Mining, is the designated Qualified Person as defined by National Instrument 43-101 and is responsible for the PEA technical information contained in this release.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
ON BEHALF OF THE BOARD OF DIRECTORS
ZINCX RESOURCES CORP.
"PEEYUSH VARSHNEY"
PEEYUSH VARSHNEY, LL.B
CEO & CHAIRMAN
CONTACT:
Investor Relations
Phone (604) 684-2181
[email protected]
SOURCE: ZincX Resources Corp.