Canadian Zinc Corporation: Drilling Extends Massive Sulphide Mineralization at Lemarchant Deposit, South Tally Pond Project, Newfoundland

Canadian Zinc Corporation: Drilling Extends Massive Sulphide Mineralization at Lemarchant Deposit, South Tally Pond Project, Newfoundland

07:01 EDT Thursday, October 31, 2013

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 31, 2013) - Canadian Zinc Corporation (TSX:CZN)(OTCQB:CZICF) ("the Company" or "Canadian Zinc") is pleased to provide an update on the 2013 Phase 2 diamond drill program underway on its wholly owned South Tally Pond copper-lead-zinc-silver-gold project in central Newfoundland. The South Tally Pond project is located adjacent to, and in the same volcanic belt as, the Duck Pond copper-zinc mine and mill complex operated by Teck Resources.

Assay results from first six drillholes (2,350 metres) of a planned 6,000 metre drill program have been received. The initial six drillholes were aimed at extending the newly discovered Northwest Zone massive sulphide mineralization located 250 metres northwest of the Lemarchant deposit (see CZN press release dated February 27, 2013).

Highlights from the 2013 Phase 2 diamond drill program include:

• Drillhole LM13-82 intersected massive sulphide mineralization assaying 9.33% zinc, 0.38% lead, 0.90% copper, 38.57 g/t silver and 0.47g/t gold over 3.0 metres.
• Drillhole LM13-83, located 35 metres up-dip of drillhole LM13-82, intersected multiple semi-massive to massive sulphide including 6.55% zinc, 1.96% lead, 0.30% copper, 37.12 g/t silver and 0.35 g/t gold over 9.0 metres..

The current drilling program has successfully extended the Northwest Zone mineralization 50 metres to the south of the two discovery drillholes, LM13-73 and LM13-74 (Section 106+00N).

Drillhole LM13-82 intersected a well mineralized interval between 309.0 and 351.6 metres downhole (42.6 m) which includes a base metal sulphide zone from 309 to 312 metres and a barite zone from 332.6 to 351.6 metres.

Drillhole LM13-83, located 35 metres up-dip of the LM13-82 intersection, cored a well mineralized interval between 275.1 and 354.1 metres downhole that contains local semi-massive to massive base metal sulphide zones.

The other four drillholes (LM13-84 to LM13-87) for which assays have been received to date all intersected favourable felsic volcanic stratigraphy similar to that associated with base metal sulphide zones. Each drillhole contains locally anomalous disseminated to stringer base metal mineralization.

Significant assay results to date:

Drilling is continuing at the South Tally Pond project and is focused on expanding the Lemarchant mineral resource (see Press Release dated September 16, 2013). Additional drilling of the Northwest Zone is planned including a step-out to the north.

South Tally Pond Project

The South Tally Pond project is a significant, 100%-owned land position covering 214 km2 of a highly prospective volcanogenic massive sulphide ("VMS") geological belt in central Newfoundland. The Lemarchant Deposit, the most advanced target on the South Tally Pond property, is situated 20 km southwest of Teck Resources Limited's Duck Pond copper-zinc mine in the same geological belt.

Previous drilling by Paragon Minerals Corporation (now a 100% owned subsidiary of Canadian Zinc) at the Lemarchant Deposit has outlined a significant precious metal-rich copper-lead-zinc VMS deposit with excellent potential to develop into a viable economic resource. An initial National Instrument ("NI") 43-101 mineral resource estimate was completed in January 2012 on the Lemarchant Deposit and includes the following mineral resources, as of that date:

• Indicated Mineral Resource: 1.24 million tonnes grading 5.38% zinc, 0.58% copper, 1.19% lead, 1.01 g/t gold and 59.17 g/t silver (15.40% ZnEQ) using a 7.5% zinc equivalent grade cut-off.
• Inferred Mineral Resource: 1.34 million tonnes grading 3.70% zinc, 0.41% copper, 0.86% lead, 1.00 g/t gold and 50.41 g/t silver (11.97% ZnEQ) using a 7.5% zinc equivalent grade cut-off.

(See Technical Report and Mineral Resource Estimate on the Lemarchant Deposit, South Tally Pond VMS Project, central Newfoundland, dated March 2, 2012, filed on SEDAR under Paragon Minerals Corporation).