TSX: NZC $0.090
Zn: $1.29/lb
Pb: $0.93/lb
Ag: $15.40/oz

Mineral Reserves and Resources

A number of historical mineral reserve and resource estimates have been compiled and reported for the Main Zone deposit at Prairie Creek. It is apparent from consideration of the various reserve and resource statements that they consistently reflect a high grade zinc-lead-silver- vein-type deposit.

Mineral Reserves 2017

As a result of the Sept 2017 Feasibility Study, a new Mineral Reserve was estimated by AMC and is shown below.

August 2017 Mineral Reserves, Prairie Creek Mine

Mineral Zone Classification Tonnes
(t)
Silver
(g/t)
Lead
(%)
Zinc
(%)
Zinc
Equivalent
Main Quartz Vein (MQV) Proven 1,524,171 161.43 8.90 10.22 26.84
Probable 4,190,187 144.76 9.96 8.20 25.70
Total 5,714,358 149.21 9,67 8.74 26.00
Stockwork (STK) Proven 188,173 108.19 4,84 11.56 21.22
Probable 1,188,366 63.81 3.54 6.86 13.46
Total 1,376,539 69.88 3.72 7.50 14.52
Stratabound (SMS) Proven - - - - -
Probable 980,566 54.90 5.06 9.64 17.97
Total 980,566 54.90 5.06 9.64 17.97
TOTAL Proven 1,712,344 155.58 8.45 10.36 26.22
Probable 6,359,119 115.78 8.00 8.17 22.22
Total 8,071,463 124.22 8.10 8.64 23.07

Notes: The Mineral Reserves are as of August 02, 2017, and based on a design cut-off grade of 11% ZnEq for longhole open stoping (“LHOS”), 11% ZnEq for mechanized drift-and-fill (“DAF”), an incremental stoping cut-off grade of 10% ZnEq, and 6% ZnEq cut-off grade for development ore. Cut-off grades are based on a zinc metal price of $1.00/lb, recovery of 75% and payable of 85%; a lead metal price of $1.00/lb, recovery of 88% and payable of 95%; and a silver metal price of $18/oz, recovery of 92% and payable of 81%. Exchange rate used is C$1.25= US$1.00. Average planned dilution, unplanned dilution and mining recovery factors of 13%, 11% and 95%, respectively, for LHOS; and 18%, 6% and 98%, respectively, for DAF are assumed.

A Technical Report based on the 2017 Feasibility Study is available below. This Technical Report dated September 28, 2017, was prepared by AMC Consultants, with H. A. Smith, P.Eng., L. P. Staples, P.Eng., S.Elfen, P.E., G. Z. Mosher, P.Geo, F. Wright, P.Eng, and D. Williams, P.Eng. as the Qualified Persons, all independent of NorZinc. The Technical Report has been filed on SEDAR and may be viewed under NorZinc’s profile at www.sedar.com, or by clicking below.

To view the complete September 28, 2017 Technical Report please click on the image below.

Prairie Creek Property Feasibility Study NI 43-101 Technical Report
(20.2MB PDF)

2015 Mineral Resource Estimates

The most recent Prairie Creek Mineral Resource Estimate was completed in September 2015 by AMC Mining Consultants Ltd. ("AMC") [Gregory Z. Mosher P.Geo. Qualified Person ("QP"), as defined by NI 43-101].

September 2015 Mineral Resources Prairie Creek Mine

Mineral Zone Classification Tonnes (t) Silver (g/t) Lead (%) Zinc (%)
Main Quartz Vein (MQV) Measured 1,313,000 211 11.5 13.2
Indicated 4,227,000 168 11.6 9.2
Measured & Indicated 5,540,000 178 11.6 10.2
Inferred 5,269,000 199 8.7 12.9
Stockwork (STK) Measured 169,000 116 5.3 12.6
Indicated 1,953,000 61 3.5 6.6
Measured & Indicated 2,122,000 66 3.6 7.1
Inferred 1,610,000 70 4.6 6.2
Stratabound (SMS) Indicated 1,042,000 54 5.2 10.8
Measured & Indicated 1,042,000 54 5.2 10.8
Inferred 170,000 60 6.3 11.2
TOTAL Measured 1,482,000 200 10.8 13.2
Indicated 7,222,000 123 8.5 8.7
Measured & Indicated 8,704,000 136 8.9 9.5
Inferred 7,049,000 166 7.7 11.3

Notes: Mineral Resources are stated as of 10 September 2015. Mineral Resources include those Resources converted to Mineral Reserves. Stated at a cut-off grade of 8% ZnEq based on prices of US$1.00/lb for both zinc and lead, and US$20/oz for silver. Average processing recovery factors of 78% for Zn, 89% for Pb, and 93% for Ag. Average payables of 85% for Zn, 95% for Pb, and 81% for Ag. ZnEq% = (grade of Zn in %) + [(grade of lead in % * price of lead in $/lb * 22.046 * recovery of lead in % * payable lead in %) + (grade of silver in g/t* (price of silver in US$/Troy oz/ 31.10348) * recovery of silver in % * payable silver in %)] / (price of zinc in US$/lb*22.046 * recovery of zinc in % * payable zinc in %). $ Exchange rate = 1 CAD/USD. The September 2015 Prairie Creek Mine Mineral Resource estimate was completed by Gregory Z. Mosher, P.Geo, Qualified Person (“QP”), as defined by National Instrument 43-101 (“NI 43-101”) of AMC Mining Consultants (Canada) Ltd.

MQV RESOURCE LONG SECTION VIEW

Distribution of Main Quartz Vein resources by resource classification

SMS RESOURCE PLAN VIEW

Distribution of Stratabound Resources by resource classification (looking vertically downwards)

Disclaimer

The “resource” grades and tonnages include all intercepts in the specific area and has no blocks removed by a cut-off grade. The estimate includes 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, and there is no certainty that the preliminary assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the mineral resources will be converted to mineral reserves.

Cautionary Note to U.S. Investors – The United States Securities and Exchange Commission 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. We use certain terms on this website, such as “measured,” “indicated,” and “inferred” “resources,” which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F which may be secured from us, or from the SEC’s website at http://www.sec.gov/edgar.shtml


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