Vancouver, British Columbia, May 31, 2010 - Canadian Zinc Corporation (TSX: CZN; OTCBB: CZICF)
reports that Vatukoula Gold Mines plc has published its results for the first half year ended February 28, 2010.
Vatukoula Gold Mines plc (“VGM”) is a UK company, listed on the AIM Market of the London Stock
Exchange, which owns and operates the Vatukoula Gold Mine located in Fiji. Canadian Zinc holds 628 million
shares of VGM representing approximately 17% of VGM’s shares.
The following information and commentary has been derived from VGM’s announcement May 28,
VGM reported that the first half year has been particularly productive for the Vatukoula Gold Mine. Continuing
efforts to increase production at the mine resulted in higher gold production of 25,096 ounces, increased gross
margins and £4 million of profit after tax.
VGM now expects gold production for the year ending August 31, 2010 to be about 50,000 ounces and
anticipates reaching its targeted production rate of 100,000 ounces per annum in the first calendar quarter of
2011. Cash costs per ounce are expected to fall as production ramps up, providing further scope for growth.
VGM Financial Results (Unaudited)
VGM reported a profit after tax of £4.0 million for the six months ended February 28, 2010, compared to a loss
of £3.9 million in the period ended February 28, 2009. Earnings per share in the six months ended February 28,
2010 were 0.12 pence per share, compared to a reported loss of 0.29 pence per share in the comparative
period in 2009.
Turnover for the period ended 28 February 2010 was £16.5 million, compared to turnover of £9.5 million for the
period ended 28 February 2009. This increase was predominantly attributable to both the planned ramp up in
gold production at the Vatukoula Gold Mine and a higher average gold price received (US$1,102/ounce). Gross
margins increased to £7.5 million, up from £0.23 million in the period ended 28 February 2009. This substantial