Vancouver, British Columbia, Canada – Monday, February 1, 2021 – ZincX Resources Corp. (“ZincX Resources” or the “Company”, TSX Venture Exchange: ZNX) is pleased to announce planning is now underway to launch a summer drill program on the Akie property.
2021 Drilling Program
Planning for the Company’s 2021 drill program on the Cardiac Creek Zn-Pb-Ag deposit has been initiated.
The 2021 drill program will consist of three holes totalling approximately 2,000 metres of drilling with a primary objective of acquiring mineralised drill core sample material for advanced metallurgical testing. The holes will target specific areas of the deposit to provide material representative of the deposit across its strike and width. This material will be used to further investigate the metallurgical response of the mineralisation with a focus on enhancing the recoveries and boosting concentrate grades for both zinc and lead; using state-of-the-art metallurgical testing facility owned by Tongling Non-Ferrous Metals of China (Tongling).
ZincX Resources will manage the drill program on behalf of Tongling. It is anticipated that Tongling will send a technical delegation to visit the project site and provide expertise and guidance with respect to the drilling program and subsequent metallurgical test program. The Company will maintain its strict, industry standard QA/QC program that will involve a series of pulverized blanks, duplicate samples and independently prepared laboratory standards. The blanks, standards or duplicate samples will be inserted into the sample stream at intervals of every 10 samples. The assay lab will also apply their own QA/QC procedures by systematically inserting standards, blanks and duplicates into sample batches. Approximately 10% of all the samples submitted to the assay lab will be forwarded to an accredited referee lab for check assay purposes.
The Company anticipates a late May to mid-June start up and the program, as currently planned, is expected to have a 4 to 6 week timeframe from start to finish.
Tongling had previously agreed to fully fund the drilling and metallurgical test program. Tongling will now conduct the metallurgical test program at the conclusion of the 2021 exploration season. This test is intended to enhance metallurgical work conducted and reported in the 2018 PEA.
The Company has been in regular communication with Tongling and the respective technical teams continue to work diligently to confirm design requirements and finalize schedules.
The Company is in general agreement with Tongling to convert the funds, which have already been advanced to the Company, into shares at a price of 30 cents per share – approaching a 67% premium to the Company’s current share price (and which would be at a 400-per-cent premium to the Company’s share price when originally negotiated). Tongling would thus be increasing its involvement and investment in the Company by $1.398 million.
Peeyush Varshney, CEO of the Company, stated: “2020 was an unprecedented and challenging year for the junior mining sector but we look forward to the exploration activity this summer. We continue to dialogue with Tongling and expect to successfully execute on our planned drill program. We have long valued the mutually beneficial relationship with Tongling and appreciate their technical expertise as we advance metallurgical testing on the Cardiac Creek deposit. Tongling’s continued participation and confidence in the project confirms the robust economics shown in the 2018 PEA and recognizes the potential long-term district development opportunity. We look forward to working closely with them this upcoming season.”