Canadian Zinc Supports Expansion of Nahanni National Park

* Reuters is not responsible for the content in this press release.

Tue Jun 9, 2009 4:21pm EDT

  OTTAWA, ONTARIO, Jun 09 (MARKET WIRE) -- 
Canadian Zinc Corporation (TSX: CZN)(OTCBB: CZICF) (the "Company" or
"Canadian Zinc") welcomes the announcement of the Government of Canada's
decision and the introduction today in Parliament of new special
legislation on the proposed expansion of Nahanni National Park Reserve,
which excludes the Prairie Creek Mine, and supports the balanced approach
to resource development and conservation.

    The proposed Park expansion announced today in Ottawa by The Honourable
Jim Prentice, Canada's Environment Minister and Minister responsible for
Parks Canada, will see the area of Nahanni Park expanded by 30,000 square
kilometers, making it the third largest National Park in Canada. The
enlarged Park will cover most of the South Nahanni River watershed and
will completely encircle the Prairie Creek Mine. However, the Mine itself
and a large surrounding area of approximately 300 square kilometers is
specifically excluded from the Park and will not be part of the expanded
Park.

    In making the announcement The Honourable Chuck Strahl, Minister of
Indian Affairs and Northern Development, said that the Government
recognizes the importance of resource development in Canada's North and
the decision on the expansion of Nahanni National Park reflects a
balanced approach to conservation and to potential future economic
benefits that development of the Prairie Creek Mine can bring to the
people of the Dehcho.

    A new Bill, introduced by the Government in the House of Commons today,
entitled "An Act to amend the Canada National Parks Act to enlarge
Nahanni National Park Reserve of Canada" provides for the expansion of
Nahanni National Park and, crucially from CZN's point of view, proposes
at Section 7(1) amendments to the Canada National Parks Act to enable the
Minister for the Environment to enter into leases or licences of
occupation of, and easements over, public lands situated in the expansion
area for the purposes of a mining access road leading to the Prairie
Creek Area, including the sites of storage and other facilities connected
with that road.

    Heretofore, an access road to a mine through a National Park is not
permitted under the Canada National Parks Act, and the Act is now to be
amended solely for Nahanni National Park Reserve and specifically for the
purpose of providing access to the Prairie Creek Mine area.

    Attending the historic Nahanni National Park expansion announcement and
celebration at the Canadian Museum of Nature in Ottawa today, Mr. John F.
Kearney, Chairman of Canadian Zinc Corporation said:

    "Canadian Zinc Corporation welcomes the long anticipated expansion of
Nahanni National Park Reserve, with the exclusion of the Prairie Creek
Mine area and the guarantee of access to the Mine through the enlarged
Park."

    "Canadian Zinc, and indeed the entire Canadian mining and exploration
industry, supports a balanced approach to resource development and
conservation, which in the proposed expansion of the Park has now been
achieved," Mr. Kearney added.

    Following the statements made by Prime Minister Harper, in announcing the
interim withdrawal of lands for the purposes of park expansion in August
2007, where the Government committed to consultations to determine how to
balance the interests of various stakeholders, including "the commercial
interests whose existing investments must be recognized and respected",
Canadian Zinc has been working closely with officials at Indian and
Northern Affairs Canada and at Parks Canada, and in consultation with the
Government of the Northwest Territories, to achieve this balanced
solution.

    In July 2008 Canadian Zinc and the Parks Canada Agency entered into a
Memorandum of Understanding in which they agreed to work collaboratively,
within their respective areas of responsibility, authority and
jurisdiction, to achieve their respective goals of an expanded Nahanni
National Park Reserve and an operating Prairie Creek Mine.

    Canadian Zinc supports the proposed expansion of Nahanni National Park
and has agreed to manage the development of the Prairie Creek Mine so the
mine does not, in its own right, negatively affect the expansion of the
Nahanni Park.

    The balanced approach to development and conservation achieved today also
acknowledges the aspirations of the communities of the Dehcho First
Nations in that most of the South Nahanni watershed will be preserved and
protected while also facilitating the development of the Prairie Creek
Mine which will bring much needed jobs, benefits, business opportunities
and economic stimulus to the Dehcho Region and to this part of the
Northwest Territories.

    Enactment of the new legislation introduced today will be a "win- win"
for the Park, for the Prairie Creek Mine and for the Dehcho and will
facilitate all parties achieving their respective objectives.

    "Canadian Zinc believes that the Prairie Creek Mine and the enlarged
Nahanni National Park can co-exist and that, properly planned and
managed, the enlarged Park will not interfere with the operation of the
Prairie Creek Mine and similarly that the operation of the Mine will not
adversely impact upon the Park or its ecological integrity," said John
Kearney.

    "We are very pleased to be part of this unique and historic solution to
the compatibility of mine development and environmental protection and
conservation." Mr. Kearney added.

    THE PRAIRIE CREEK MINE:

    Canadian Zinc's 100% owned Prairie Creek Mine is an important Canadian
resource, located in the Mackenzie Mountains in the Dehcho region of the
Northwest Territories, within the watershed of the South Nahanni River
and in proximity to but outside the current boundaries of Nahanni
National Park Reserve.

    The Project includes a partially developed underground mine with an
existing 1,000 ton per day mill and related infrastructure and equipment.
The mineral deposit contains very substantial quantities of zinc, lead
and silver. When in production the Mine will add significantly to
Canada's production of lead and zinc concentrates and will create
employment for about 225 people and business opportunities for the local
communities in the Dehcho region of the Northwest Territories which
currently have a very high unemployment rate and a growing population.

    Development of the Prairie Creek Mine has the support of the great
majority of the peoples of the Dehcho, who are badly in need of the jobs,
training and business opportunities that the mine will provide, and who
at the same time are committed to the protection of their traditional
lands.

    Canadian Zinc has entered into Memoranda of Understanding with the
Nahanni Butte Dene Band and with the Liidlii Kue First Nation (Fort
Simpson) to establish mutually beneficial, cooperative and productive
relationships. Canadian Zinc has agreed to use its best efforts to employ
community members on a first preference basis and to assist the
communities to benefit from the business opportunities associated with
the Prairie Creek Project.

    A major underground tunneling and diamond drilling program completed in
2006 /2007 led to the completion of a Technical Report to National
Instrument 43-101 standards in October 2007, filed on SEDAR, which
estimates that the Prairie Creek Property hosts total Measured and
Indicated Resources of 5,840,329 tonnes grading 10.71% zinc, 9.90% lead,
0.326% copper, and 161.12 grams silver per tonne. In addition, the Report
confirms a large Inferred Resource of 5,541,576 tonnes grading 13.53%
zinc, 11.43% lead, 0.514% copper and 215 grams silver per tonne and
additional exploration potential.

    The Measured and Indicated Resource is capable of supporting a mine life
in excess of fourteen years at the planned initial rate of 600 tonnes per
day, which will increase to 1,200 tonnes per day, and the future
inclusion of Inferred Resources is expected to extend the mine life to at
least 20 years.

    The proposed new operation at Prairie Creek utilizes the existing
infrastructure and facilities that were built in the 1980s and which will
be upgraded and enhanced to meet current-day environmental standards.

    The proposed development and operation of the Prairie Creek Project is
currently undergoing environmental assessment by the Mackenzie Valley
Environmental Review Board, which is expected to be completed by October
2010. The exclusion of the Prairie Creek Mine from the proposed Nahanni
National Park Reserve expansion area has brought clarity to the land use
and policy objectives for the region and will facilitate various aspects
of the environmental assessment.

    The future operation of the Prairie Creek Mine will provide tremendous
economic stimulus to this region of the Northwest Territories, and
presents a unique opportunity to strengthen and enhance the social and
economic well being of the surrounding Dehcho communities.

    Cautionary Statement - Forward Looking Information

    This press release contains certain forward-looking information,
including, among other things, the expected completion of acquisitions
and the advancement of mineral properties. 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 completion of transactions, the issue of permits, the size
and quality of mineral resources, future trends for the company, progress
in development of mineral properties, future production and sales
volumes, capital costs, mine production costs, demand and market outlook
for metals, future metal prices and treatment and refining charges, the
outcome of legal proceedings, the timing of exploration, development and
mining activities, acquisition of shares in other companies and the
financial results of the company. 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. Certain terms are used in this press release, such as
"measured," "indicated," and "inferred" "resources," which the SEC
guidelines prohibit U.S. companies from including in their filings with
the SEC.

Contacts:
Canadian Zinc Corporation
John F. Kearney
Chairman & Chief Executive
(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)
invest@canadianzinc.com
www.canadianzinc.com

Copyright 2009, Market Wire, All rights reserved.

-0-
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.