Canadian Zinc Corp. announced that the Mackenzie Valley Land and Water Board (Water Board), has issued a Land Use Permit for the establishment and operation of the winter road that will service an operating Prairie Creek Mine. Land Use Permit MV2012F007 (LUP) has been issued for a period of five years commencing January 10, 2013, and permits the construction, maintenance, operation and use of the winter road connecting the Prairie Creek Mine to the Liard Highway.

This permit allows the outbound transportation of the zinc and lead concentrates to be produced at the mine and the inbound transportation of fuel and other supplies during the actual operation of the Prairie Creek Mine. The newly issued road permit incorporates realignment of the original route which will improve access and further reduce potential environmental impact. At the same time the Water Board also issued a Type B Water Licence (MV2012L1-0005), valid for a period of seven years commencing January 10, 2013, which permits the limited use of water and disposal of waste for road construction, maintenance, and operational activities.

This Land Use Permit and Water Licence apply to the portion of the winter road which is under the jurisdiction of the Water Board (Crown Land); in particular, 17 kilometres of road from the minesite to the point where the road enters Nahanni National Park Reserve and 80 kilometres of road from the eastern boundary of the Park to the Liard Highway. Canadian Zinc currently holds a valid Land Use Permit (LUP MV2003F0008) and a Type B Water Licence for the original winter road route, both on Crown land and within the Nahanni National Park Reserve (NNPR), for the purpose of rehabilitation, site clean-up and supply and which may be utilized to support the on-going exploration and development of the Prairie Creek project. The newly granted permits upgrade the use and permitted activities in support of the actual operation of the Prairie Creek Mine.

This will enable commencement of initial construction work on the road prior to the finalization and issue of the main mine operating permits and Class A Water Licence, which are currently in the final permitting stages. The winter road was included in the previous environmental assessment conducted by the Mackenzie Valley Review Board which concluded December 8, 2011 and included all physical works and activities associated with the access road as part of the scope of development of the environmental assessment.