Canadian Zinc Reports Financial Results for Third Quarter 2014 - Seite 2

At the same time as the underground program is proceeding, upgrades and repairs of existing surface facilities will continue. This surface program will include completing further site testing and engineering design work for the proposed water storage pond and the waste rock pile.

Optimization Update

The Company is currently working on optimization programs to improve and optimize the PFS. The main objective is to enhance overall mine economics by finalizing efficient designs, detailing and assessing what existing equipment can be utilized, determining what needs to be upgraded, exploring methods to reduce initial capital costs and completing bid tender packages that will define with feasibility level accuracy the actual capital cost required to place the mine into production. To accomplish this task, the Company is working with three expert consulting firms.

AMC Consultants have completed a number of underground studies including geotechnical, ventilation, backfill and mine plan design, with additional studies on backfill rheology and ventilation options currently underway. AMC Consultants are also completing an update to the mineral resource model which will form the basis of a new mine plan reserve and scheduling.

Metallurgical studies are also being carried out to optimize the mill flow-sheet with the objective of reducing smelter penalty charges for deleterious elements such as mercury. These studies are on-going and include lab testing combined with evaluation of projected economics to better determine optimum concentrate specifications. These metallurgical studies will be integrated in tandem with the Company's concentrate marketing plan. With the assistance of Cliveden Trading AG the Company is completing a concentrate marketing plan which will include detailed analysis of feasible destinations for Prairie Creek concentrate production.

Tetra Tech WEI Inc. ("Tetra Tech") has completed development of tender packages for further advancement of engineering designs, detailing and assessing what existing equipment can be utilized and better determining upgrade requirements, including mine rehabilitation and development; mill completion; power generation and distribution; heat recovery systems; dense media separation plant; paste fill plant; water treatment plant; instrumentation and control systems; camp construction and winter road construction and maintenance needed to put the Prairie Creek Mine into production.