Daniels Pond Deposit


The Daniels Pond volcanogenic massive sulphide deposit is located within the Corporation’s 100% owned Tulks North property covering 16,075 hectares (approximately 32 km x 5 km) within the Victoria Lake mining camp in central Newfoundland. The Daniels Pond deposit hosts a NI-43-101-compliant Indicated Resource at a 1.5% Zn cut-off of 1.16 million tonnes grading 4.44% zinc, 2.12% lead, 0.31% copper, 87.79 g/t silver and 0.60 g/t gold, as well as an additional Inferred resource totaling 0.45 million tonnes grading 3.88% Zn, 1.74% Pb, 0.27% Cu, 81.63 g/t Ag and 0.52 g/t Au (Royal Roads news release dated March 13, 2008). The bulk of these resources occur within 150 metres of surface in two lobes of mineralization.

The deposit is located within the highly prospective Tulks North property, being located within the northern half of the Tulks Volcanic belt, the same belt of rocks that hosts Messina Minerals’ Boomerang, Hurricane and Tulks East base metal deposits, as well as the Tulks Hill deposit jointly owned by Buchans (49%) and joint venture partner, Prominex Resources (51%). The Corporation’s Daniels Pond deposit is also located less than 10 kilometres southwest of Buchans Resources’s Bobbys Pond base metal deposit and less than 30 kilometres west of Teck Resources’ recently closed Duck Pond mine and mill.

The Daniels Pond deposit is being studied as part of a regional metallurgical test program with a view to contributing as potential source of base metal ore to feed a centrally-located mill.

Daniels Pond Resource

Daniels Pond Mineral Resource Estimate by Zn% Cut-off Effective March 11, 2008

Category

Cut-off (Zn %)

Tonnes

Combined Zn%+Pb%+Cu%

Zn %

Pb %

Cu %

Ag g/t

Au g/t

Indicated

1.5

1,162,000

6.88

4.44

2.12

0.31

87.79

0.60

2.0

929,000

7.98

5.13

2.50

0.34

101.40

0.63

2.5

787,000

8.79

5.65

2.77

0.37

111.03

0.68

Inferred

1.5

445,000

5.89

3.88

1.74

0.27

81.63

0.52

2.0

332,000

7.04

4.61

2.13

0.30

85.86

0.53

2.5

236,000

8.70

5.59

2.79

0.32

112.31

0.55

 

Daniels Pond Technical Report

Technical Report on the Daniels Pond Deposit and Property Holdings (pdf)