High-grade Silver, Zinc, and Lead Advanced stage of development Prairie Creek Mine-NWT

Largest Shareholder Vatukoula Gold Mine (680,000 oz Reserves, 4.3 million oz Resource)

Message: Canadian Zinc Corporation | Orest Wowkodaw, CA, CFA


Canadian Zinc Corporation | Orest Wowkodaw, CA, CFA, 1.416.869.3092
.73 | C$114,397.0M | Speculative Buy , Target C$1.50
• Initiating coverage with a SPECULATIVE BUY rating and C$1.50 target
Our SPECULATIVE SPECULATIVE BUY BUY rating and C$1.50 C$1.50 target are based on:
• High--grade Resource with Exploration Upside Potential --grade Resource with Exploration Upside Potential: Prairie Creek has
M&I resources of 5.8m tonnes grading 26.5% ZnEq + inferred resources of
5.5m tonnes grading 33.4% ZnEq. This is among the highest grade
undeveloped ZnEq deposits globally. We anticipate further drilling to
materially expand the resource size.
• Existing Infrastructure/Low Capital Intensity: Prairie Creek is not a Greenfield
project. A previous owner developed an underground mine/surface
infrastructure that was approximately 90% complete before falling into
receivership 30 years ago.
• Permitting De--Risking: --Risking: The Mackenzie Valley Environmental Impact Review
Board recently announced that after finding no adverse environmental
impacts from the project, an Environmental Impact Review would not be
required and that the project should proceed to the regulatory phase for
• Valuation & M&A Optionality: Canadian Zinc is currently trading a 51.0%
discount to our 10% NPV estimate of $1.49 per share versus a 51.7% average
discount for our developer peer group. Given the project’s grade, extensive
existing infrastructure, and available off-take rights, combined with the
current scarcity of WW zinc projects, we view Canadian Zinc as a highly likely
takeover candidate.
We are initiating research coverage of Canadian Zinc with a C$1.50 per share 12-
month target, which is based on 1.0 our 10% NPV estimate of $1.49 per share. In
our view, Canadian Zinc is among the world’s most prospective zinc juniors.
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