Toronto, Ontario – September 30, 2015 – Nevada Zinc Corporation (“Nevada Zinc” or the “Company”) (TSX-V: NZN) is pleased to announce it has purchased a 100% interest in the Mountain View Mine (“MVM”) located within the Company’s Lone Mountain Zinc Project. The MVM, which has been a key outstanding acquisition target since the Company commenced exploration and drilling in the Lone Mountain area roughly one year ago, cements the Company’s holdings in the area to 100% of all mineral titles in the Lone Mountain area. The MVM property boundary is located within 60 metres of the closest point of drilling on the Company’s Discovery Zone and approximately 200 metres from the Company’s latest drill hole, LM-15-36 which intersected very significant high grade zinc and lead mineralization averaging 9.49% zinc and 1.34% lead,(10.83% zinc + lead) over a 91.44 metre (300 foot) interval.
President and CEO, Bruce Durham commented on the acquisition: “We have continued to intersect long intervals of high grade mineralization that expand the overall footprint of the Discovery Zone. We knew that in order to expand the footprint of the mineralization much farther to the southeast we needed to acquire the Mountain View Mine property. We managed to purchase 100% of the propertry with no further obligations and we can now go back to work on expanding the footprint of the Discovery Zone and also commence an evaluation of the various targets around the Mountain View Mine workings.”
· The MVM is reported to have produced some 5 million pounds of zinc and some 0.6 million pounds of lead from non-sulphide mineralization comprised of smithsonite, zincite, hydrozincite and cerussite.
· Production statistics from the MVM indicate that mining of high grade zinc (and lesser lead) was carried out intermittently between 1942 and 1964.
· Recently reported drill hole LM-15-33 intersected zinc-lead mineralization from 146.3 to 152.4 metres, an interval of 6.1 metres that averaged 2.71% zinc and 0.41% lead (3.12% zinc + lead) approximately 60 metres to the northwest of the nearest point of the MVM property.
· Recently reported drill hole LM-15-34 intersected zinc-lead mineralization from 128.02 to 144.78 metres, an interval of 16.76 metres that averaged 4.20% zinc and 1.76% lead (5.96% zinc+lead) approximately 60 metres to the northwest of the nearest point of the MVM property.
· The Company’s most recent drill hole, LM-15-36 intersected a 91.44 metre zone of high grade zinc and lead mineralization in the interval from 146.30 to 237.74 metres thataveraged 9.49% zinc and 1.34% lead (10.83% zinc+lead). Importantly there is no drilling beyond the long high grade interval intersected in drill hole LM-15-36 so the ultimate dimensions of the Discovery Zone remain open to further significant expansion toward and away from the MVM property. This hole is located approximately 200 metres from the closest point of the MVM property.
· The most recent drill program results (Phase 3) expanded the footprint of the Discovery Zone of mineralization up-dip, down-dip as well as along strike in both directions from the discovery first reported in the Company’s press release dated November 19, 2014.
· Drill holes completed in the first three phases of drilling define an area of mineralization over a 180 metre strike length, over a dip length of up to 250 metres and that averages approximately 40 metres in thickness (varying from a few metres to more than 100 metres). Mineralization at the Discovery area remains open to further expansion including in the area beyond drill holes LM-15-33, and LM-15-34 near the MVM property.
· Plans are underway for a Phase 4 drill program that will focus on the expansion of the Discovery Zone mineralization and some initial testing for mineralization on the newly acquired MVM property.
Drilling Plan Map
The Mountain View Mine Property
Little information is readily available on the operations at the historic Mountain View Mine. In a Nevada State report by Roberts, R.J., Montgomery, K.M., and Lehner, R.E., (1967) and titled Geology and Mineral Resources of Eureka County, Nevada, Nevada Bureau of Mines and Geology, Bull. 64, the following is indicated:
Production years were from 1942-1964 and production totaled 4,952,627 lb of zinc, 649,579 lb of lead, 4,040 oz of silver and 600 lb of copper (no data provided or available for 1950).
Roberts et al (1967) reported the first claims were located in the area in 1920 for zinc. Production was small until 1942 when high grade zinc carbonate was discovered on the Mountain View claim. An underground mine was established with levels on the 44-foot and 82-foot levels. Production in 1942-1943 totalled 2284 short tons grading 28.8% zinc and 4% lead. Production to 1964 amounted to 4,952,627 lb. of zinc, 649,579 lb. of lead, 4,040 oz of silver and 600 lb of copper. The mineralogy of the ore was reported to be smithsonite, zincite, hydrozincite and cerussite, malachite, and azurite. It was reported that small amounts of sulphide were present locally, principally, sphalerite, galena, chalcopyrite, and pyrite. A small drill program was reported to have been completed in areas proximal to the MVM properety which indicated the presence of additional mineralization. Mineralization is located within brecciated Devils Gate Limestone and is thought to be structurally controlled, perhaps at the intersection of two fault systems (Roberts et al.).
It is not known if any mining or exploration has been completed on the MVM property since 1964.
At this point the Company has little more information about the mining and exploration activities on the MVM although it is known that some additional information is likely available from private sources. The Company will endeavor to secure as much data as reasonably possible prior to commencing work on the property.
About The Lone Mountain Project
The Lone Mountain Project (the “Property”), comprised of 218 claims covering approximately 4,000 acres and 100% owned by the Company through its wholly-owned US subsidiary, is subject to certain terms as per the underlying lease agreements disclosed on SEDAR (press release June 24, 2014 and various other filings including the Company’s MD&A’s filed on SEDAR).
The Property is located in east-central Nevada and is easily accessible via paved and gravel roads northwesterly from Eureka where all essential services are available. The Property nowincludes the Mountain View Mine that is reported to have produced some 5 million pounds of zinc and some 0.6 million pounds of lead from non-sulphide mineralization comprised of smithsonite, zincite, hydrozincite and cerussite.
Bruce Durham, P.Geo, is a qualified person as that term is defined by National Instrument 43-101 on behalf of the Company and has approved the scientific and technical content contained in this press release.
About Nevada Zinc
Nevada Zinc is a discovery driven, early-stage mineral exploration company with a proven management team focussed on identifying unique opportunities in mineral exploration that can provide significant value to its shareholders. The Company’s existing projects are located in Nevada and the Yukon.
For further information contact:
Nevada Zinc Corporation
Suite 612 - 390 Bay St.
Toronto, Ontario M5H 2Y2
Bruce Durham, President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.