Canadian Zinc Reports Financial and Operating Results for

Canadian Zinc Reports Financial and Operating Results for Third
Quarter 2012 
Award of Options to Certain Officers and Employees 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/15/12 -- Canadian
Zinc Corporation (TSX:CZN)(OTCQB:CZICF) (the "Company" or "Canadian
Zinc") announces its financial results for the three and nine month
periods ended September 30, 2012.  
This press release should be read in conjunction with the unaudited
interim consolidated financial statements and notes thereto, and
management's discussion & analysis ("MD&A") for the three and nine
month periods ended September 30, 2012, both available on SEDAR at 
For the three and nine month periods ended September 30, 2012, the
Company reported a net loss and comprehensive loss of $621,000 and
$12,576,000, respectively, compared to a net loss and comprehensive
loss of $5,293,000 and $29,844,000 for the same periods,
respectively, ending September 30, 2011.  
The net loss in the three and nine month periods ended September 30,
2012 included a mark-to-market gain of $3,032,000 and a loss of
$4,998,000, respectively, on the Company's marketable securities,
compared to mark-to-market losses of $2,703,000 and $23,737,000 for
the comparative periods in 2011. Excluding the gain or loss on the
marketable securities, the Company recorded a loss of $3,653,000 in
the third quarter and a loss of $7,578,000 in the nine months ended
September 30, 2012, compared to similar losses of $2,590,000 and
$6,107,000 in the same periods last year. 
Canadian Zinc currently holds 12.57 million shares of Vatukoula Gold
Mines plc ("VGM"), which represents approximately 10.7% of VGM's
issued share capital. VGM is a UK company listed on AIM (part of the
London Stock Exchange), which owns and operates the Vatukoula Gold
Mine in Fiji. At September 30, 2012, the Company's investment in VGM
had a market value of $8.8 million. The market value of the Company's
investment in VGM at November 13, 2012, was $6.3 million. 
At September 30, 2012, the Company had a positive working capital
balance of $16,432,000 including cash and cash equivalents of
$619,000, short term investments of $8,162,000 and marketable
securities of $8,804,000 (for a total of $17,585,000).  
Numerous site development and exploration programs were undertaken at
the Prairie Creek Mine Site during the summer season of 2012. Cabo
Drilling (Pacific) Corp. was contracted to supply manpower and
technical supervision for the 2012 exploration diamond drilling
program during which a total of 5,629 meters of drilling was
completed utilizing Company owned drills. 
Drilling was continued in the Casket Creek area, located
approximately 1.6 kilometres north of the most northern drill hole
that defines the present mineral resource, in order to complete
wedging some drill holes around the 2011 intercept in hole
PC-11-187W2 which intersected 5% Pb and 11% Zn over 3.5 metres of
core length. Drilling began in May 2012 utilizing the Company's
TM-2500 coring rig. A total of 2,182 metres over two drill holes
(with wedging) was completed in 2012. The drill holes confirmed
stratigraphy and contained a number of structural zones, however, no
visual high grade mineralization was evident but assays are pending.
After completing this phase of drilling at Casket Creek the TM-2500
drill rig was moved back to the Mine Site in September for
maintenance and winter storage. 
The Company's Longyear drill rig focused on drilling infill areas
closer to the Mine Site and within the defined mineral resource.
Drilling commenced in June 2012 and a total of 3,447 metres over nine
drill holes was completed to the end of September. Most of these
holes were drilled at depth and along strike in the proximity of the
known underground workings. Targeted areas included locations that
have the potential to be upgraded from the inferred category to the
indicated resource category.  
Analytical results for the 2012 exploration program are expected
later in November 2012. 
A surface geophysical program involving both electromagnetic (EM) and
gravity surveys was also completed on a small part of the Prairie
Creek property in the proximity of the mine in August 2012.
Interpreted results indicate a strong multi-channel EM anomaly, with
coincident gravity anomaly, centered over a previously undrilled area
immediately west of the existing underground workings. Further
analysis of this anomaly is underway. 
An auger drill rig contracted from Mobile Augers and Research Ltd.,
in Edmonton was airlifted to the Prairie Creek site in May. The auger
drill completed a series of geotechnical holes within the existing
water storage pond and also in the proposed areas for the waste rock
pile and a possible second water pond. This provided further
engineering information for design and construction purposes and also
for permitting requirements. Drilling a series of hydrological
groundwater wells was also completed to further monitor the hydrology
of the site area in preparation for mining activities.  
Field work including geotechnical evaluation and studies of the road
route through Nahanni National Park Reserve and adjacent areas has
also been carried out. This included assessment of specific areas of
route re-alignment focussing on bridge crossings, reducing steep
grades and substratum assessment. A hydrologic assessment was also
completed along the road corridor to support further regulatory
A detailed aerial LIDAR (light detection and ranging system) survey
in combination with new surface imagery was also carried out by
McElhanney Surveying utilizing a fixed wing aircraft. This survey
provided accurate baseline data and maps for road routing and
re-alignment and also for construction planning along the road and at
the mine site. The data from this survey has now been delivered along
with the orthophoto imagery. A second geotechnical helicopter
supported field program involving drilling, surveying and sampling to
further detail the route was completed in late September. This drill
testing included standard penetrating load tests and perma-frost
testing in areas where new structures or significant road cutting are
Using the new LIDAR data a property wide geological field-mapping and
sampling program was completed in September 2012. Concentration was
on the main mining leases, which were accessed by the network of
existing roads with some additional traversing being made. Previously
mapped areas were incorporated and infill mapping and resampling were
carried out. Results are being compiled using a Geographic Imaging
System and are expected later in November 2012. 
Further assessment work of the Mine Site ahead of planned
construction was completed by various contractors. These included
material inspections, roof and building envelope assessments and site
refurbishment studies. Additional assessment of the mill and camp
facilities were carried out with engineers from SNC Lavalin Inc.
visiting and assessing the existing facilities. Underhill Geomatics
Inc. completed a comprehensive internal laser scan survey within the
mill building to provide "as built" engineering data for further
design and planning. These engineering studies will continue until
year-end with procurement planning continuing into 2013. 
In a major new initiative Canadian Zinc launched four significant
onsite training programs at the Prai
rie Creek Mine Site this year.
These training programs were undertaken with assistance from the
Federal Government, Human Resources and Skills Development Canada, in
the $4.2 million "More Than a Silver Lining" aboriginal training
program, specifically for the Prairie Creek Mine, and administered by
the NWT Mine Training Society and assisted by the Government of the
Northwest Territories.  
These training programs included Office Administration, Mineral
Exploration Field Assistant, Environmental Monitors, Heavy Equipment
Operators, Diamond Drill Helper, Advance Medical First Responder, and
Camp Cook. The Silver Lining training program has trained 62
individuals, with many of the graduates joining the staff at the
Prairie Creek Mine, Canadian Zinc's Fort Simpson office, or service
providers to the Project. 
Other training programs, which will continue off-site, are currently
being planned and co-ordinated by the Company and the Mine Training
Society which has opened an office and training centre in Fort
Simpson. Planning sessions are currently underway for training
programs in 2013. 
The Company's principal focus has been to advance the Prairie Creek
Property towards receiving a Class "A" Water Licence and associated
Land Use Permits, through the regulatory process established under
the Mackenzie Valley Resource Management Act, that will permit the
further development and subsequent mine production at Prairie Creek.  
In January 2012, following the completion of the Environmental
Assessment in December 2011, the Water Board commenced the regulatory
process for the issue of a Class "A" Water Licence and Land Use
Permit for the operation of the Prairie Creek Mine. In February 2012,
the Company submitted a Consolidated Project Description ("CPD"),
highlighting the changes that resulted from commitments made by
Canadian Zinc during the environmental assessment process.  
The Water Board completed its review of the information contained in
the application, Environmental Assessment and the CPD and in May
2012, issued a Directive on the additional information required by
the Water Board at this stage of the Regulatory Process.  
A 700 kg bulk composite sample of mineralization from the 870m and
930m underground levels at Prairie Creek Mine was shipped to SGS
Minerals Services in Vancouver for processing. Locked cycle tests
were performed with water that was collected and shipped down from
the Prairie Creek Mine in order to produce representative process
water. The sample was crushed and sorted then sent to SGS Lakefield
to undergo Dense Media Separation and then returned to Vancouver.  
SGS has carried out a number of locked cycle tests in order to
generate mineral concentrates, waste tailings and waste water. The
process water then underwent further treatment studies conducted by
CEMI Labs along with toxicity studies by Hatfield Consultants. Other
generated products, such as the tailings, are slated for further
engineering studies related to paste backfill.  
Due to the necessary time required to complete the lab testing
program with the Water Board revised the original work plan. Under
the revised work plan issued by the Water Board, technical sessions
are now scheduled to be held in Yellowknife, NT in late November
2012, with a public hearing now scheduled in late January 2013. A
draft water licence is expected in April 2013 followed by a final
licence after Ministerial approval in June 2013. 
Documentation related to this regulatory process is posted on the
Water Board website at (Year 2008,
Canadian Zinc MV2008L2-0002). 
In August 2012, Canadian Zinc and the GNWT Department of
Transportation signed a Collaboration Agreement to ensure effective
co-operation related to the public transportation infrastructure that
will support the Prairie Creek Mine project and will help ensure that
both public needs and mine activities are supported.  
Canadian Zinc plans to use the existing Northwest Territories public
transportation system to bring goods, fuel and equipment by road to
the Mine and to transport its mineral products from the Mine to world
markets. As part of this collaborative agreement, to assist in
priority setting, CZN will provide reports to the Department of
Transportation on its anticipated road transportation requirements
for the construction and operation of the Prairie Creek Mine. 
On July 31, 2012, Canadian Zinc announced that it had entered into a
binding arrangement agreement to complete a business combination as
well as a non-brokered private placement with Paragon Minerals
Corporation (TSX VENTURE:PGR). On September 24, 2012, Canadian Zinc
acquired all of the outstanding common shares of Paragon in exchange
for common shares of Canadian Zinc on the basis of 0.136 of a share
of Canadian Zinc for each share of Paragon. Canadian Zinc issued
7,299,019 common shares valued at $3,394,000 based on the closing
market price of the Company's shares on September 24, 2012 of $0.465
per share.  
Paragon's primary project is its 100% interest in the South Tally
Pond Property, which includes the Lemarchant deposit, and is located
in a proven mining district near Buchans, Newfoundland. The South
Tally Pond Property covers 261 km2 and is immediately adjacent to
Teck Resources Limited's Duck Pond Cu-Zn mine and mill complex. The
Lemarchant deposit is a significant precious metal-rich
copper-lead-zinc Volcanogenic Massive Sulphide ("VMS") discovery with
a potential opportunity to develop into a viable economic resource.
An initial National Instrument ("NI") 43-101 mineral resource
estimate that was recently completed by Paragon on the Lemarchant
deposit includes the following defined mineral resources: 

--  Indicated resource estimate: 1.24 million tonnes at an average grade of
    5.38% Zn, 0.58% Cu, 1.19% Pb, 1.10 g/t Au and 59.17 g/t Ag; and 
--  Inferred resource estimate: 1.34 million tonnes at an average grade of
    3.70% Zn, 0.41% Cu, 0.86% Pb, 1.00 g/t Au and 50.41 g/t Ag.

(See Paragon Technical Report and Mineral Resource Estimate on
Lemarchant Deposit, South Tally Pond VMS Project, Central
Newfoundland, dated March 2, 2012 filed on SEDAR.) 
The Lemarchant deposit has been defined to a 210m depth and remains
open along strike and at depth. The exploration potential outside of
the Lemarchant area of the South Tally Pond Property is still
relatively untapped with numerous priority VMS targets that have seen
limited or no drilling.  
The Company has granted stock options to certain officers and
employees to purchase a total of 960,000 shares of the Company for a
period of five years at an exercise price of $0.46 per share pursuant
to the Corporation's stock option plan. The granting of the options
is subject to all necessary regulatory approvals.  
Canadian Zinc's continued focus for the balance of 2012 and for 2013
will be to advance the Prairie Creek permit applications through the
final regulatory phase to the issue of permits allowing for
production. Laboratory testing relating to water treatment work is
finished and the results have been submitted to the Water Board.
Technical sessions are scheduled in mid-Nov
ember with public hearings
to be held in January. The water license is now expected in mid-2013. 
Working with SNC Lavalin Inc. and other consultants, the Company
plans to advance the development of the Prairie Creek Project.
Following delivery of the Preliminary Feasibility Study in June 2012,
further site investigation and geo-technical work, under the
direction of SNC, has been completed and engineering and procurement
activities will continue during the winter of 2012 and into the new
The Company is conducting further technical work to assist in this
process which involves further planning and design, site
investigations to further assess the existing infrastructure,
optimizing the mill plan layout and further assessing the
transportation corridor.  
At September 30, 2012, the Company had working capital of $16.4
million and is well positioned to finalize the 2012 programs,
continue engineering work and begin procurement of long lead time
Canadian Zinc is also evaluating its newly acquired base metal
properties, including the South Tally Pond VMS project, in
Newfoundland and preparing exploration work plans and budgets for
Alan Taylor, P.Geo., Chief Operating Officer, Vice President
Exploration and a Director of Canadian Zinc Corporation, is
responsible for the Company's exploration program, and is a
non-independent Qualified Person for the purposes of National
Instrument 43-101 and has approved this press release. 
Canadian Zinc is a Toronto-listed exploration and development
company. The company's main project is the 100%-owned Prairie Creek
zinc, silver and lead project located in the Northwest Territories,
Canada. The Prairie Creek Project contains a Mineral Reserve of 5.2
million tonnes averaging 9.4% zinc, 9.5% lead and 151 g/t silver. In
addition, Prairie Creek hosts an Inferred Resource averaging 14.5%
zinc, 11.5% lead, 0.57% copper and 229 g/t silver. (AMC Mining
Consultants (Canada) Ltd. J M Shannon and D Nussipakynova, Qualified
Persons, June 2012). 
A Pre-Feasibility study completed by SNC Lavalin in June 2012
indicates a pre-tax net present value ("NPV") of $253 million using
an 8% discount, with an internal rate of return ("IRR") of 40.4% and
payback period of 3 years using long-term metal price projections of
$1.00/lb zinc, $1.00/lb lead and $26.00/oz. silver, based on the
Mineral Reserve alone. 
Canadian Zinc also holds the South Tally Pond VMS exploration project
in Newfoundland. 
Risk and Uncertainties 
The Company's business and results of operations are subject to
numerous risks and uncertainties, many of which are beyond its
ability to control or predict. Because of these risks and
uncertainties, actual results may differ materially from those
expressed or implied by forward looking statements, and investors are
cautioned not to place undue reliance on such statements, which speak
only as of the date hereof. 
Investors are advised to review the discussion of risk factors
associated with the Company's business set out in the Company's
Annual Information Form for the year ended December 31, 2011, which
has been filed with the Canadian Securities Regulators on SEDAR
( The risks and uncertainties, as summarized in the
Company's MD&A and in other Canadian and U.S. filings, are not the
only risks facing the Company. Additional risks and uncertainties not
currently known to the Company, or that are currently deemed to be
immaterial, also may materially adversely affect the Company's
business, financial condition and/or operating results. 
Alan Taylor, P.Geo., Chief Operating Officer, Vice President
Exploration and a Director of Canadian Zinc Corporation, is
responsible for the Company's exploration program, and is a
Non-Independent Qualified Person for the purposes of National
Instrument 43-101 and has approved this press release. 
Cautionary Statement - Forward Looking Information 
This press release contains certain forward looking information. This
forward looking information includes, or may be based upon,
estimates, forecasts, and statements as to management's expectations
with respect to, among other things, the issue of permits, the size
and quality of the company's mineral reserves and resources, future
trends for the company, progress in development of mineral
properties, the timing of exploration, development and mining
activities, completion of financings and the merger, capital costs,
mine production costs, demand and market outlook for metals, future
metal prices and treatment and refining charges, the financial
results of the company and future gold production and profitability
of Vatukoula Gold Mines in which the Company has a significant
shareholding. There can be no assurances that such statements will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements. The
Company does not currently hold a permit for the operation of the
Prairie Creek Mine. Mineral resources that are not mineral reserves
do not have demonstrated economic viability. Inferred mineral
resources are considered too speculative geologically to have
economic considerations applied to them that would enable them to be
categorized as mineral reserves. There is no certainty that mineral
resources will be converted into mineral reserves. 
Cautionary Note to United States Investors 
The United States Securities and Exchange Commission ("SEC") permits
U.S. mining companies, in their filings with the SEC, to disclose
only those mineral deposits that a company can economically and
legally extract or produce. We use certain terms in this press
release, such as "measured," "indicated," and "inferred" "resources,"
which the SEC guidelines prohibit U.S. registered companies from
including in their filings with the SEC. U.S. Investors are urged to
consider closely the disclosure in our Form 40-F which may be secured
from us, or from the SEC's website at
Canadian Zinc Corporation
John F. Kearney
(416) 362-6686
(416) 368-5344 (FAX) 
Canadian Zinc Corporation
Alan B. Taylor
VP Exploration & Chief Operating Officer
(604) 688-2001 or Toll Free: 1-866-688-2001
(604) 688-2043 (FAX) 
Canadian Zinc Corporation
Steve Dawson
VP Corporate Development
(416) 203-1418
(416) 368-5344 (FAX)
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