ZincX Resources Receives Permit Approval for the Akie Property

Rhea-AI Summary

ZincX Resources Corp. has received a 5-year extension for its surface drilling permit at the Akie project, now valid until December 31, 2026. This renewal allows continued exploration of the Zn-Pb-Ag Cardiac Creek deposit and its surrounding targets. The spot zinc price is above US$1.60/lb, driven by supply-demand fundamentals. The Preliminary Economic Assessment (PEA) from 2018 revealed strong financial metrics, showing a potential pre-tax NPV of CAD$649M and an IRR of 35%. ZincX is preparing for exploration activities in 2022.

Positive

• 5-year extension of the surface drilling permit until December 31, 2026.
• Spot zinc price remains strong, over US$1.60/lb.
• 2018 PEA indicates strong financial metrics including a pre-tax NPV of CAD$649M and IRR of 35%.
• Ongoing support from government and stakeholders enhances confidence in exploration efforts.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / January 18, 2022 / ZincX Resources Corp. ("ZincX" or the "Company", (TSXV:ZNX),(OTCQB:ZNCXF), (FRA:M9R) is pleased to provide an update on the permitting status for its 100% owned Akie project that hosts the premier Zn-Pb-Ag Cardiac Creek deposit.

Permitting Status Update:

The Company has been advised by the Ministry of Energy, Mines and Petroleum Resources that the surface drilling permit for the Akie property has been renewed for an additional 5-year period that now extends exploration activities to December 31^st, 2026. The permit originally expired on December 31^st, 2020; however due to COVID-19 it was given a one-time, one-year extension to December 31^st, 2021.

The drill permit covers a large exploration area of the 11,580-hectare Akie property, including all three key thrust panels that contain mapped occurrences of the highly prospective Gunsteel Formation. The central thrust panel represents the primary target for exploration on the Akie property and is host to the premier Zn-Pb-Ag Cardiac Creek deposit that has been progressively drilled by the Company. Other high-priority exploration targets on the central panel include the North Lead Zone and NW Extension targets where drilling has identified mineralisation along the same stratigraphic horizon as the deposit. The eastern thrust panel is host to the recently discovered Sitka showing as well as a large open-ended silver soil anomaly. Other exploration targets on this panel include the large South Zinc Anomaly. The western thrust panel is host to the GPS barite showing.

Peeyush Varshney, President and CEO, commented, "We are pleased to have received our drill permit extension for the Akie property. The ongoing support by the government and other stakeholders of our exploration efforts on the Cardiac Creek deposit and Akie property is encouraging.

The spot zinc price is very encouraging and remains well in excess of market expectations, starting 2022 above US$1.60/lb. We believe this is the result of market supply/demand fundamentals and our team remains very bullish on zinc. The addition of zinc to the critical minerals list by Canada and the US Geological Survey in 2021, alongside the approval of massive infrastructure programs in the US and Europe, point to very favorable market demand dynamics. This growing demand, coupled with shrinking supply that is associated with mine closures, will continue to foster strong markets for zinc over the coming years, making the Company's 100% owned Akie project a potential key development project globally."

The Company has initiated planning of exploration activities on the Akie property for the 2022 season, including a number of high-priority drill targets.

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 (million)	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.

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.

(1) Murrell, M., and Roberts, W., 1990; Summary Report, 1989 Exploration Program on the Mt. Alcock Property, British Columbia Ministry of Energy, Mines and Petroleum Resources, Assessment Report 19829A & B, 133p.

(2) Carne, R.C., 1980; Report on Diamond Drilling on the Bear and SI Claim Group, British Columbia Ministry of Energy, Mines and Petroleum Resources, Assessment Report 8626, 51p.

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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FAQ

What is the significance of the permit extension for ZincX Resources (ZNCXF)?

The extension allows ZincX to continue exploration activities at the Akie project until December 31, 2026, enhancing the potential for resource development.

What are the projected financial metrics according to the 2018 PEA for ZincX Resources (ZNCXF)?

The 2018 Preliminary Economic Assessment indicates a pre-tax NPV of CAD$649M and an IRR of 35%.

How does the current zinc price affect ZincX Resources (ZNCXF)?

The spot zinc price is over US$1.60/lb, which is higher than market expectations and supports a favorable market environment for the company.

When is ZincX planning its next exploration activities for the Akie project (ZNCXF)?

ZincX is planning high-priority exploration activities for the Akie property in the 2022 season.