Prairie Creek Nearing Full Regulatory Approval
Regular readers of the newsletter will know that full regular approval of the Prairie Creek mine will finally open the doors and continue the story of this mine made legendary by the Hunt brothers attempt to corner the market in silver in the late 1970's. It was a massive undertaking back then and within 3 months of opening its doors when the brothers were forced into receivership by a collapse in the price of silver engineered in part by the U.S. government.
The current collapse of most base metal stocks since November 2007 has also brought Canadian Zinc down to a bargain basement price. The current operator of the mine has set a course to begin production and the current price level makes it easy to get in with a small amount of money.
| Symbol | Last Trade | Change | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| CZN.TO | 11:29AM ET | 0.46 |  0.0150 | 3.19% |
PRAIRIE CREEK PERMITTING UPDATE
Vancouver, British Columbia, July 22, 2008 - Canadian Zinc Corporation (TSX: CZN; OTCBB: CZICF) (the "Company" or "Canadian Zinc") is pleased to announce that it has received a number of approvals to enable continued activities aimed at preparing infrastructure and road access at the Prairie Creek Mine to take place in order to continue advances towards operations.
Roadwork Authorization:
The Company recently received additional authorizations and permits required to proceed with rehabilitation of the winter road immediately to the north of the Prairie Creek Mine. Final authorization from Fisheries and Oceans Canada was issued July 15, 2008, to permit work to proceed adjacent to the Prairie and Funeral creeks. This authorization, coupled with a Class "B" Water Licence issued March 20, 2008, by the Mackenzie Valley Land and Water Board ("MVLWB" or "Board"), and a Quarry Permit, issued February 28, 2008, from Indian and Northern Affairs Canada, will allow the commencement of rehabilitation work on the winter road. Construction crews are being mobilized and work is expected to commence before the end of July.
The existing road, which connects the Prairie Creek Mine with the Liard Highway is approximately 175 kilometres long. The road was first constructed in 1980 and was previously used to transport more than 800 loads of equipment, material and fuel to the Prairie Creek site. Under a Land Use Permit dated April 10, 2007, issued by the MVLWB, the Company was granted a permit to use the road in the winter months for a period of five years until April 10, 2012.
The Company plans to use the rehabilitated road to transport fuel and other necessary supplies to the Prairie Creek Mine site and, upon commencement of operations, to transport the zinc and lead concentrates from the mine site to the rail head.
Applications for Operating Permits:
On May 28, 2008, Canadian Zinc applied to the MVLWB for Land Use Permits and a Class "A" Water Licence to permit the operation of the Prairie Creek Mine (refer to news release dated June 11, 2008). The Company has subsequently responded to a number of requests for additional information from the Board. On July 14, 2008, the MVLWB advised the Company that all applications have now been deemed complete and that the Board is proceeding to the next stage of the regulatory process.
Canadian Zinc's applications for a Type "A" Water Licence and Type "A" Land Use Permit ("LUP") for the operation of the Prairie Creek Mine utilizes the extensive existing infrastructure and facilities that were built in the 1980's, which will be upgraded and enhanced to meet current-day environmental standards. The improvements proposed for specific site facilities will further mitigate any potential impact the Project may have on the environment.
Background:
The Prairie Creek Mine ("Mine" or "Site") is 100% owned by Canadian Zinc Corporation, and is situated in the southern Mackenzie Mountains of the Northwest Territories. The Site presently contains significant infrastructure and facilities constructed in the early 1980's. The Mine received a Water Licence (#N3L3-0932) and Land Use Permit (N80F248) in 1980 for mine operation and the production of lead and zinc concentrates and a silver-bearing copper concentrate. The Mine was within three months from production when the then owner was placed into receivership as a result of the decline in the price of silver.
For the record, I hold about 20,000 shares of Canadian Zinc stock and will be holding them for a lot longer. I am not affiliated with the management of Canadian Zinc nor have I been contracted in any form to promote the company.
