Canadian Zinc Corp.

Price Data Symbol Date Price Change 52 Wk Range Volume OTCMKTS:CZICF 06/08/2017 USD 0.1340 0.0040 0.3200 - 0.1100 48,086 TSE:CZN 06/08/2017 CAD 0.1800 0.0100 0.4100 - 0.1600 173,949

Alert me when stock is updated Quick Links External ??' Canadian Insider ??' chat.ceo.ca ??' Incakola News ??' InfoMine ??' Investors Hub [1] ??' Investors Hub [2] ??' SEDAR ??' Seeking Alpha ??' StockChase - Expert Opinions ??' StockHouse.com - Forum ??' YouTubeQuotes & ChartsGoogle Finance ??' CZICF ??' TSE:CZNYahoo Finance ??' CZICF ??' TSE:CZNStockCharts ??' CZICF ??' CZICF / Spot Gold ??' CZICF / Spot Silver ??' TSE:CZNYCharts ??' Key Stats ??' News ??' Quote ??' Share HistoryOther ??' CZICF - Financial Times ??' CZICF - OTC Market ??' TSE:CZN - Financial Times ??' TSE:CZN - TMX

Don's Summary (from last analysis - 06/08/2017)

Canadian Zinc has a silver/zinc/lead project (Prairie Creek) in the Northwest Territories. They are heading towards production once they get financing ($180 million capex) and have a large high grade deposit (70 million oz at 4 opt). Production will start slow (1.7 million oz) and increase, but likely reaching 3 million ounces per year. Estimated future reserves are valued at .74 cents per oz, and they have a fully diluted market cap of only $37 million. The after-tax IRR is only 15% at $18 silver. I would not expect them to get financing until silver reaches $20.

What I really like is their potential to find more reserves and increase production, because very little drilling has been done on the Praire Creek property (20,000 acres and a 10 mile trend). Also, they have a lot of high grade zinc (9%) and lead (9%), which will make this a low cost silver mine. I expect this stock to be at least a 15 bagger long term at higher silver prices - if they build the mine. Another thing I like about them is that they are an unlikely takeover target, because the project has a low IRR and a high capex. They currently have a good balance sheet with $6 million in cash and no debt. They many need more cash to complete the final feasibility study, which is underway.

I'm projecting all-in costs of $12 per oz, which I think is conservative. Zinc and Lead sell for about 85 cents per lb. 165 million lbs x .85 = $140 million annually. Operating cash costs are projected to be less than $100 million the first 5 years, thus silver cash costs should be low. My worry is they will sell the silver in a streaming deal to finance the capex and then focus on zinc production (they are talking to Sandstorm). The capex is high and they will be tempted to sell the silver in advance to finance the mine. That is my biggest concern. If they do a streaming deal, it will be much easier to finance the mine.

The mine is almost permitted. All they have left to do is a road permit (expected in 2017), final feasibility, and financing. I've followed this stock for 10 years and management has always been a weakness. They currently do not have a company presentation on their website. In the past, their company presentations have not been comprehensive. They have done very little drilling over the past 10 years, even though there is excellent exploration potential on the property.

This stock is so cheap that the play is probably to wait and see how they finance the mine. If they don't do a silver stream, then it will triple in value very quickly.

General Details

Resource Data

Property

Last Analysis Data (06/08/2017) Stage Location Name Owned Size (Ha) Type Au Ag Cu Notes Exploration Northwest Territories, Canada Prairie Creek 100% (guess) 8,000 Underground show 70 million oz high grade resource.' Permitted. Total Land Package Size (ha): 8,000

Current Data Stage Location Name Owned Size (Ha) Type Au Ag Cu Notes Exploration Northwest Territories, Canada Prairie Creek 100% (guess) 8,000 Underground show 70 million oz high grade resource.' Permitted. Total Land Package Size (ha): 8,000

Profitability (by resource)

Future Valuation (Cash Flow & Totals)

Defaults