Any natural resources company will admit that the permitting process to get activities underway is difficult and time-consuming. Given a solid plan of attack and good will with the permitting agencies, the process can move forward with a minimum amount of delay and expense. Solid management and a desire to work toward a common goal is the key to getting operations under way sooner rather than later. Timing an investment to when the process is nearing completion is the key.
Canadian Zinc Corp., an exploration and development mining company, works to find, develop and exploit mineral deposits primarily in Canada. The company is currently advancing mine permitting and development activities in the Northwest Territories of Canada.
Although the permitting process for new or existing mines is generally a long and arduous one, Canadian Zinc is making significant progress in all areas. Its primary mining project, Prairie Creek, is a reclamation and enhancement project with tested reserves. The company has applied for, and received, permits on several fronts which have allowed it to begin infrastructure and reclamation work. In this regard, access road enhancements are well underway, past storage issues have been addressed to governmental satisfaction, and existing buildings and machinery are being rehabilitated.
Prairie Creek is an existing mine with reserves and infrastructure capable of generating 1,000 tons per/day of production. Measured and indicated reserves within the presently defined vein are 5.2 million tones. Grading within the vein indicates potential concentrations of 11.4% zinc, 10.9% lead, 176 g/t of gold and 0.5% copper – SEDAR October 2007. Indications have also found an open-ended vein of unknown concentrations.
With its balance sheet in solid shape (positive working capital balance $26 million), Canadian Zinc holds a steady cash-burn position. It does appear that the company is nearing operations and ready to produce revenue after a long and productive permitting process.
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