Buchans Intersects High-Grade Sulphides and strong Stockwork Mineralization at Lundberg Deposit, near Buchans, Central Newfoundland
October 17th, 2018
Buchans Resources Limited (“Buchans” or the “Company”) announces additional positive results from its ongoing 8,000 metre drilling program at its base metal exploration projects in the Buchans area of central Newfoundland.
Recent results include assays from 8 additional holes drilled at the Lundberg deposit to complete the Lundberg portion of the planned Buchans 2018 drilling program.
New results from the Lundberg deposit area continue to meet or exceed expectations, particularly as intersections of high-grade massive sulphide orebodies were again encountered above the Lundberg stockwork resource. Of the six holes drilled in the area of historic workings in 2018, five intersected high-grade ore remaining unmined by the former Lucky Strike mining operations.
Drilling on the central-northern portion of the Lundberg stockwork sulphide deposit encountered intersections of the former Lucky Strike high-grade massive sulphide orebody lying above Lundberg.
- Hole H-18-3515, drilled vertically from surface, did not intersect old workings and cut higher grade sulphides within the Two Level zone of the Lucky Strike orebody, reporting 8 maveraging 9.11% combined base metals (“CBM”) as 0.35% Cu, 3.01% Pb, 5.75% Zn, 94.04 g/t Ag and 0.999 g/t Au, including 8.0 m averaging 20.38% CBM as 0.69% Cu, 6.81% Pb, 12.88% Zn, 159.94 g/t Ag and 1.254 g/t Au.
- Also in hole H-18-3515, Lundberg stockwork mineralization was intersected immediately beneath Lucky Strike, including 9 m averaging 3.93% CBM as 0.91% Cu, 0.97% Pb, 2.05% Zn, 6.48 g/t Ag and 0.053 g/t Au.
- Hole H-18-3516b, drilled from the same setup as 3515 at an angle of -45 towards the south, intersected approximately 8 m of old workings before cutting high-grade massive sulphides over 4.80 m, averaging 15.48% CBM, as 0.50% Cu, 5.01% Pb, 9.98% Zn, 149.06 g/t Ag and 0.686 g/t Au.
- In the same hole H-18-3516b, underlying stockwork mineralization was intersected beneath Lucky Strike over 7 maveraging 4.53% CBM as 0.62% Cu, 1.08% Pb, 2.84% Zn, 7.31 g/t Ag and 0.127 g/t Au, including 23.0 m averaging 6.18% CBM, as 0.85% Cu, 1.42% Pb, 3.91% Zn, 7.59 g/t Ag and 0.156 g/t Au.
- Hole H-18-3518, drilled approximately 70 m east of 3515 at an angle of -48 towards the south, intersected breccia sulphides over 0.50 m assaying 5.22% CBM as 0.12% Cu, 1.69% Pb, 3.41% Zn, 7.70 g/t Ag and 0.125 g/t Au before passing through approximately 17 metres of old workings to intersect stockwork mineralization over 7 m averaging 2.57% CBM as 0.53% Cu, 0.71% Pb, 1.34% Zn, 11.54 g/t Ag and 0.065 g/t Au.
Beyond the north-eastern limits of the 2013 Lundberg resource estimate, four shallow surface holes (i.e., H-18, 3414, 3519, 3520, & 3521) were drilled to explore for extensions to the Lundberg deposit near surface.
Results from this drilling indicate the Lundberg resource extends further to the northeast than previously assumed, as drilling returned stockwork mineralisation in all four holes, including an intersection of 29.0 m averaging 1.86% CBM as0.14% Cu, 0.57% Pb, 1.15% Zn, 2.12 g/t Ag & 0.043 g/t Au in Hole H-18-3519.
The following table provides a summary of drilling assay results discussed in this News Release. Previous 2018 assays are available in the Company’s News Releases dated July 31, 2018 and September 17, 2018.
|Hole||From m||To m||Width m||Cu %||Pb %||Zn %||Ag g/t||Au g/t||CBM%||Comments|
|*H-18-3515||51.00||74.80||23.80||0.35||3.01||5.75||94.04||0.999||9.11||Lucky Strike (Two Level)|
|*H-18-3518||25.50||26.00||0.50||0.12||1.69||3.41||7.70||0.125||5.22||Lucky Strike (North Orebody)|
|H-18-3520||58.70||59.20||0.50||0.31||2.94||3.63||16.30||0.026||6.88||Lucky Strike horizon|
* All holes drilled from surface as vertical holes except for H-18-3516b & 3517 drilled at a dip of -45° towards 180°; 3515 drilled at a dip of -84° towards 180°; and & 3518 drilled at a dip of -48° towards 180°. True widths estimated to be 80-100% of reported widths. **CBM%-combined copper (Cu%) + lead (Pb%) + zinc (Zn%). A map showing hole locations relative to the Lundberg resource is shown below.The objective of the 2018 exploration drilling program on the Lundberg deposit is to further refine and upgrade this resource, including calculation of a revised resource estimate, in advance of conducting future assessments of the Lundberg deposit’s potential for open-pit development.
The intersections of the former Lucky Strike high-grade massive sulphide orebody lying above Lundberg were not included in previous Lundberg resource estimates and may provide additional, high-grade ore that could be exploited in the early stages of a Lundberg open-pit mining operation.
Buchans now believes these high-grade intersections should be incorporated into its next resource estimate, expected in late 2018, and to this end, Buchans will be working with Mercator Geological Services to determine an appropriate methodology to weight these high-grade massive sulphide intersections into the new Lundberg open pit resource estimate.
Drilling continues at Buchans with approximately 4,500 metres drilled to date in 27 holes. In addition to drilling at the Lundberg deposit, a second drill rig has been working north of Lundberg in search of high-grade massive sulphides down dip of the former Lucky Strike orebody, as well as other VMS targets located within 3.5 km from Lundberg, including the undeveloped Sandfill and Middle Branch prospects, both comprised of transported style sulphide breccia mineralization similar to that mined in the historic Asarco operations.
Geophysical Surveys Planned
Borehole Time Domain Electromagnetic Geophysical Surveys are planned to be undertaken later in October within select holes drilled by the Company since 2007, including several deeper holes drilled during the 2018 drill program.
In addition, Buchans has contracted SkyTEM, a leading airborne electromagnetic (AEM) survey company, to fly state-of-the-art helicopter borne transient electromagnetic (TEM) and magnetic airborne geophysical surveys over its Buchans and Tulks North properties in central Newfoundland. The geophysical program is planned to survey 970-line kilometres, providing coverage over several of the Company’s key exploration prospects and deposits, as well as historic mine sites. (See BuchansNews Release October 11, 2018.)
The objective of the 2018 airborne geophysical survey is to further enhance understanding of several key exploration target areas,
Among targets to be flown are the deposits and prospects currently being explored by the current 8,000 metre drilling program, including the near-surface Lundberg deposit and other VMS exploration targets at Buchans, as well as the Daniels and Bobbys massive sulphide deposits located 20 kilometres south of Buchans.
CENTRAL NEWFOUNDLAND ZINC LEAD PROJECTS
In central Newfoundland Buchans is undertaking an 8,000-metre drilling program to further delineate and upgrade the Company’s Lundberg deposit, as well as explore several other target areas located less than 3.5 kilometres from Lundberg (Buchans News Release dated May 25, 2018) where the Company is exploring for additional resources that could be exploited in conjunction with the proposed Lundberg open-pit mine.
Buchans has engaged Mercator Geological Services of Dartmouth, Nova Scotia to prepare a new resource estimate expected to be available in Q4 of 2018. The results from the 2018 Lundberg drilling will be compiled with previous drilling results obtained in 2014 and 2015 that extended mineralization beyond the limits of the defined resource estimate compiled in 2013.
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.
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.
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.
# # # # #