VANCOUVER, BC / ACCESSWIRE / July 6, 2023 / ZincX Resources Corp. ("ZincX" or the "Company"), (TSXV:ZNX)(OTCQB:ZNCXF)(FRA:M9R) is pleased to announce that the Company has closed its non-brokered private placement of 10,000,000 common shares of the Company at a price of $0.10 per share to raise gross proceeds of $1,000,000.
Peeyush Varshney, Chief Executive Officer of ZincX, commented, "We are pleased to welcome well known mining entrepreneur Ross Beaty as a new significant shareholder of the Company."
The Company intends to use the proceeds from the private placement to continue to advance the Company's Akie and Kechika Regional projects in British Columbia and for working capital purposes.
All securities issued will be subject to a four-month hold period expiring on November 7, 2023.
The private placement remains subject to the final approval of the TSX Venture Exchange.
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 2018, 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). 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. 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 Kechika Regional Project also includes the Pie, Yuen and Cirque East properties which the Company maintains a significant 49% interest with partners Teck Resources Limited (TSX: TECK.B) and Korea Zinc Co. Ltd holding 51%. 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. These projects 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
info@zincxresources.com
SOURCE: ZincX Resources Corp.
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