Buchans Intersects 17.02% Combined Base Metals over 0.85 metres at Bobbys Deposit, Central Newfoundland

Buchans Intersects 17.02% Combined Base Metals over 0.85 metres at Bobbys Deposit, Central Newfoundland

December 20th, 2018  

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Toronto, December 20, 2018 – Buchans Resources Limited (“Buchans” or the “Company”) is pleased to announce drilling results from its 2018 drilling programs on the Bobbys deposit and on the Daniels deposit at its Tulks North property in central Newfoundland.

The Tulks North property is located approximately 20 km south of the town of Buchans on the south side of Red Indian Lake and is the location of a separate exploration program from the 2018 drilling at the Lundberg deposit and other nearby VMS targets in the immediate Buchans area.

These two massive sulphide deposits on the Tulks North property host existing NI 43-101 compliant resource estimates and are owned 100% by Buchans. The 2018 drill programs included three holes drilled down plunge below the Daniels deposit and two holes drilled below the Bobbys deposit, for a total of ~2,800 metres.

Drilling at the Bobbys deposit extended semi-massive to massive sulphide mineralization down plunge to a vertical depth of 475 m, where one hole averaged 17.02% combined base metals over 0.85 m, and the lens remains open at depth, while the 2018 drilling at the Daniels deposit extended mineralization below the known resource to vertical depths of 472 m.

Results are illustrated on longitudinal projections for each of Bobbys and Daniels deposits below.

HIGHLIGHTS


Bobbys Deposit Drilling:

Drilling in hole BP-18-041B extended semi-massive to massive sulphide mineralization down plunge of the Bobbys deposit’s main plunge to a vertical depth of 475 m (see Bobbys deposit longitudinal projection).

  • Hole BP-18-041B, intersected 0.85m averaging 17.02% combined base metals (“CBM”) as 0.50% Cu, 0.02% Pb, 16.50% Zn, 28.4 g/t Ag and 0.306 g/t Au.
  • Hole BP-18-040, drilled approximately 182 m southwest of H-18-041B, along a second possible plunge at shallower depth (approximately 190 m below surface), intersected altered and mineralized volcanic rocks averaging 0.90% CBM over 19.0 m averaging 0.34%Cu, 0.07% Pb, 0.49% Zn, 8.04 g/t Ag and 0.093 g/t Au.

 

Of note, the intersection of high-grade massive sulphides in hole BP-18-41B cut a northern lens of zinc- rich massive sulphides that remains open at depth. This lens has seen limited drilling by previous operators and previous highlight intersections for this zone include:

Hole MOA-08-34 that cut 1.75 m assaying 29.09% CBM as 3.25% Cu, 2.51% Pb, 23.33% Zn, 88.1 g/t Ag and 0.153 g/t Au at a vertical depth of 476 m: and

Hole MOA-08-35 that intersected the up dip extension of the zone as two closely spaced zones assaying 2.31% Cu, 2.70% Pb, 9.10% Zn, 53.8 g/t Ag and 0.049 g/t Au (i.e., 14.1% CBM) over 1.0 metre; and 3.52% Cu, 3.09% Pb, 13.73% Zn, 72.8 g/t Ag and 0.100 g/t Au (i.e., 20.34% CBM) over 1.35 m, at a vertical depth of 435 m.

Based on drilling completed prior to 2018, the Bobbys deposit is estimated to host Indicated resources totalling 1,095,000 tonnes averaging 0.86% Cu, 0.44% Pb, 4.61% Zn, 16.56 g/t Ag and 0.20 g/t Au, as well as Inferred resources of 1,177,000 tonnes averaging 0.95% Cu, 0.27% Pb, 3.75% Zn, 10.95 g/t Ag and 0.06 g/t Au using a 1.1% copper equivalent cut-off [Technical report dated July 31, 2008 entitled “Technical Report on the Bobbys Pond Cu-Zn Deposit, Newfoundland and Labrador, Canada” by Hrayr Agnerian, M.Sc. (Applied), P.Geo. of Scott Wilson Roscoe Postle Associates Inc].

The Company further notes that additional targets may also be identified by recently completed SkyTEM airborne surveys that provide coverage over the deposit and surrounding area as these results and data are currently under review (See Buchans News Release October 11, 2018).

Daniels Deposit Drilling:

The 2018 drilling has extended mineralization below the known resource to vertical depths of 472 m (see Daniels deposit longitudinal projection).

Highlights include hole DN-18-131 that intersected 8.80m of pyritic massive sulphides averaging 1.96% CBM as 0.23% Cu, 0.18% Pb, 1.55% Zn, 12.09 g/t Ag and 0.658 g/t Au. This lobe of massive sulphides remains open at depth, where potential remains for discovery of additional accumulations of higher-grade massive sulphides.

This hole had originally been planned to test the deposit at a vertical depth of 500 m, but ground conditions deflected the hole causing it to shallow above target depth. The hole returned results comparable to nearby historic drill hole, hole DN-52, and has been surveyed by borehole geophysical surveys. Hole DN- 52 was unavailable for geophysical surveys.

Two holes drilled southwest and northeast of DN-18-131 (DN-18-130 & DN-18-132 respectively) also intersected extensions to the Daniels mineralized zone as narrow intercepts of semi-massive sulphides, including hole DN-18-130 that intersected 0.50 m assaying 4.18% CBM as 0.15% Cu, 1.36% Pb, 2.67% Zn, 46.60 g/t Ag and 0.225 g/t Au; while hole DN-18-132 intersected 0.5 m assaying 1.92% CBM as 0.02% Cu, 0.63% Pb, 1.27% Zn, 1.30 g/t Ag and 0.315 g/t Au.

Based on exploration completed prior to 2018, the Daniels deposit is estimated to host Indicated resources totalling 929,000 tonnes averaging 0.34% Cu, 2.50% Pb, 5.13% Zn 101.4 g/t Ag and 0.63 g/t Au as well as Inferred resources of 332,000 tonnes averaging 0.30% Cu, 2.13% Pb, 4.61% Zn, 85.86 g/t Ag and 0.53 g/t Au, at a 2% Zn Cut-off [Technical report dated June 13, 2008 and entitled “Revised Technical Report on the Daniels Pond Deposit and Property Holdings of Royal Roads Corp., Red Indian Lake Area, Newfoundland, Canada” by Peter C, Webster, B.Sc., P.Geo., P. James F. Barr, B.Sc., and Rafael Cavalcanti de Albuquerque, B.Sc. of Mercator Geological Services Limited].

2018 Drilling Program Completed:

Buchans has completed borehole geophysical surveys at both the Bobbys and the Daniels deposits and results are currently under review. Further work on the large Tulks North property will be considered once the Company has adequately assessed results from the 2018 drill program together with results from recently completed borehole geophysical surveys and recently completed, property-wide, SkyTEM airborne surveys (See Buchans News Release October 11, 2018).

 Buchans has now completed its 2018 drilling program on its central Newfoundland VMS projects, having completed the last hole of the program, hole H-18-3526, that tested the Lucky Strike horizon approximately 225 metres northeast of the former Lucky Strike high-grade massive sulphide orebody at Buchans. No significant mineralization was observed in this hole.

Following completion of the 2018 drilling a new updated resource estimate for the Lundberg deposit is currently being compiled by Mercator Geological Services and is expected to be available in the first quarter of 2019.

ASSAY RESULTS


The following table provides a summary of assay results discussed in this news release.

HoleFrom mTo
m
Width mCu %Pb %Zn %Ag g/tAu g/tCBM%Comments
Bobbys Deposit
BP-18-040243.00262.0019.000.340.070.498.040.0930.9015% sulphides incl. bands of semi-massive pyrite
incl.244.00252.008.000.480.020.7310.030.0791.24
BP-18-041B485.00501.0016.000.080.120.832.830.0771.02semi-massive sulphides
incl.486.00486.500.500.121.308.5013.200.0739.92
and 516.20518.001.802.410.010.066.920.0772.48local bands semi-massive sulphides
and541.90542.750.850.500.0216.5028.400.30617.02massive sulphides

 

Daniels Deposit
DN-18-130529.50533.003.50.080.350.9414.430.2841.37semi-massive sulphides
incl.529.50530.000.500.151.362.6746.600.2254.18
DN-18-131440.10448.908.800.230.181.5512.090.6581.96massive pyrite
DN-18-132236.70237.200.500.020.631.271.300.0201.92minor sulphide bands and stringers

All holes drilled from surface.  True widths estimated to be 80% of reported widths.  *CBM%-combined copper (Cu%) + lead (Pb%) + zinc (Zn%).  Longitudinal projections showing mineralized intercept locations relative to the deposits are available at www.BuchansResources.com

CENTRAL NEWFOUNDLAND ZINC LEAD PROJECTS

Buchans controls mineral rights covering 116 km2 (11,600 hectares) prospective for Zn-Pb-Cu-Ag-Au base metal volcanogenic massive sulphide (“VMS”) deposits within the Buchans district of central Newfoundland.

Buchans’ land package includes rights to several undeveloped deposits including the large, lower grade, Lundberg deposit at Buchans, as well as several smaller “satellite deposits”, composed of higher-grade, massive sulphide mineralization, including the Daniels deposit and the Bobbys deposit located on the Company’s Tulks North property, 20 km south of Buchans.

Buchans’ exploration strategy in Newfoundland is to continue to build on its existing resource base with the aim of developing either a stand-alone open pit mine, centred on the larger lower grade Lundberg stockwork deposit, or a number of smaller higher-grade VMS deposits that could be developed simultaneously and processed in a central milling facility.

This central Newfoundland district includes past mining operations at Buchans where Asarco mined 16.2 million tonnes of ore from five orebodies, including Lucky Strike, with a combined average grade of 14.51% Zn, 7,65% Pb, 1.33% Cu, 126 g/t Ag, and 1.37g/t Au, as well as the Duck Pond mine where Teck Resources mined 5.0 million tonnes of ore with an average grade of 2.7% Cu, 4.4% Zn, 53 g/t Ag and 0.6 g/t Au.

QUALIFIED PERSON


Paul Moore, M.Sc., P.Geo., (NL), Vice President of Exploration of Buchans, a Qualified Person within the meaning of National Instrument 43-101, has reviewed the technical contents of this release for accuracy.

Buchans Resources maintains and operates under industry standard sampling, assaying and QAQC procedures and protocols. A full description of these procedures can be found within the Company’s news release dated July 31, 2018.

ABOUT BUCHANS RESOURCES


Buchans Resources Limited was incorporated on May 8, 2015 under the laws of the Province of Ontario, Canada. The Company was a wholly-owned subsidiary of Minco plc (“Minco”) until August 30, 2017, at which time all the shares in the Company were transferred to Minco shareholders.

Buchans has interests in zinc, lead, silver properties located in Canada, Ireland and the United Kingdom, gold properties in Newfoundland and Labrador, manganese in New Brunswick and, indirectly through its 22% shareholding in Xtierra Inc. (TSXV: “XAG”), in base metal and silver projects in Mexico.

Enquiries:       info@buchanslimited.com

John F. Kearney: Chairman & Chief Executive                                          +1 416 362 6686

Paul Moore:  Vice President Exploration                                                    + 1 709 738-7384

Peter McParland:  Director – Ireland                                                     +353 (0) 46 907 3709

Additional information about the Company is available on the Company’s website at www.BuchansResources.com.

FORWARD-LOOKING STATEMENTS

This document contains certain forward-looking statements relating to, but not limited to, the Company’s expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward-looking words such as “anticipate”, “believe”, “expect”, “goal”, “plan”, “intend”, “estimate”, “may” and “will” or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information may include reserve and resource estimates, estimates of future production, unit costs, costs of capital projects and timing of commencement of operations, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves the grade and recovery of ore which is mined varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, delays in the development of projects changes in exchange rates, fluctuations in commodity prices, inflation and other factors. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results. Shareholders and prospective investors should be aware that these statements are subject to known and unknown risks uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Shareholders are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

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