The Prairie Creek project is a zinc, silver, and lead deposit located in the Northwest Territories. There are four types of zinc-lead-copper-silver resources on the property including quartz veins, stratabound sulphides, stockwork, and Mississippi Valley type. The most significant type of mineralization is the quartz vein-type, which contains the majority of the currently defined Mineral Resources.
In the early 1980’s, the mine was developed and fully permitted but a decline in metal prices resulted in suspension of activity prior to commencement of production. Much of the previous infrastructure is still on site and will be utilized and upgraded where possible.
Based on a Feasibility Study released in 2017, the Prairie Creek mine is proposed as an underground operation, mining an average of 1,600 tpd over a 15 year mine life. Average annual production is projected to be approximately 65,000 tonnes of zinc concentrate and 72,000 tonnes of lead concentrate containing approximately 95 Mlbs of zinc, 105 Mlbs of lead and 2.1 Mozs of silver. Recoveries are estimated to be 83% for zinc, 88% for lead and 87% for silver.
The August 2017 Proven and Probable Mineral Reserve at Prairie Creek consists of 8.1 Mt at 124.2 g/t silver, 8.1% lead and 8.6% zinc (6%-12% ZnEq cut-off).
Objectives for 2019 include completing detailed engineering for all major construction and refurbishment activities, finalizing a financing package, and negotiating contracts for construction.
Canadian Zinc closed a C$20 million financing in July. The use of proceeds included repayment of a US$10 million loan provided by RCF VI in December 2017, the ongoing development of the Prairie Creek project, and general working capital.