At a Glance

Buchans Resources Limited has interests in zinc-lead-silver properties located in Newfoundland, gold properties in Newfoundland and Labrador; nickel-copper-cobalt properties in Labrador. Buchans also holds investments in Xtierra Inc. (TSXV: “XAG”), Minco Exploration plc and Canadian Manganese Company Inc.

The directors and management of Buchans Resources have an established track record of discovering, developing and operating or selling mines and mineral properties across the world.

Project Overview

Buchans Base Metals Project

Buchans controls mineral rights within the world-renowned Buchans Volcanogenic Massive Sulphide (“VMS”) mining camp where former operators, ASARCO, operated a high-grade base metal mining complex recognized internationally as one of the world’s highest grade base metal VMS mines. ASARCO produced more than 16.2 million tonnes of ore from five separate deposits with a combined average grade of 14.51% Zn, 7.65% Pb, 1.33% Cu, 126 g/t Ag, and 1.37g/t Au before ore exhaustion and mine closure in 1984.

The Company’s 100% owned Buchans property totaling more than 73.5 km2 (7,350 hectares) and covers all of the Buchans Camp’s past producing orebodies and key undeveloped prospects.

Among the Company’s achievements at Buchans has been its identification of the Lundberg deposit, a large lower grade resource of near-surface mineralization located immediately beneath workings of the previously mined high-grade Lucky Strike massive sulphide orebody. Lundberg has n-pit Indicated Mineral Resources of 16,790,000 tonnes grading 1.53% Zn, 0.64% Pb, 0.42% Cu, 5.69 g/t Ag and 0.07 g/t Au (3.38% Zn Eq) and In-pit Inferred Mineral Resources of 380,000 tonnes grading 2.03% Zn, 1.01% Pb, 0.36% Cu, 22.35 g/t Ag and 0.31 g/t Au (4.46% Zn Eq).

In 2014 the Company initiated a comprehensive and ongoing relogging program, reviewing archived drill core from its Buchans project as a means of identifying and evaluating additional exploration target areas for the discovery of new high-grade Buchans orebodies. This work has identified multiple target areas warranting further exploration including the Middle Branch prospect located 3.5 km northeast of the Lundberg deposit where potential exists for discovery of new large Buchans orebodies; and the Two-Level (Lucky Strike) mine area located immediately north of the Lundberg deposit.

Buchans has entered into a Collaboration Agreement with Boliden Mineral AB under which Boliden will evaluate the Company’s Buchans property for possible future investment and participation.

Boliden will contribute $600,000 to Buchans towards the costs of maintaining the property and approved ongoing exploration and evaluation programs to be undertaken by Buchans. Subject to the outcome of Boliden’s evaluation, the parties intend to negotiate an earn-in and option agreement pursuant to which Boliden shall be given a right to earn an interest in the Buchans Base Metal project.

Buchans is confident that its Buchans property holds potential for discovery of new VMS deposits comparable to historically mined orebodies within the current property.

Other Central Newfoundland VMS Projects in Tulks Belt

Elsewhere in central Newfoundland, the Company owns mineral rights to several projects, including three additional VMS deposits with mineral resource estimates compliant with National Instrument 43-101, including the Daniels Pond, Bobbys Pond, and Tulks Hill base metal deposits. Additional work was undertaken within the Tulks North project that hosts the Daniels and Bobbys deposits in 2019 and additional work that had been considered for 2020 has been postponed as a result of challenging conditions related to the COVID-19 pandemic.

Exploring for Gold in Newfoundland and Labrador

Buchans recently entered into new joint ventures to explore for gold on three of its properties located within the central Newfoundland gold belt and field exploration programs are underway on all JV properties. These joint ventures are:

  • the Long Range Gold JV with Benton Resources Inc.
  • the Tulks South Gold JV with Quadro Resources Ltd., and
  • the Lake Douglas-South Tally Gold JV with C2C Gold Corp.

In addition, Buchans holds 100% interest in three gold properties known as the Exploits Properties, that total 825 ha and are located within and adjacent to New Found Gold Corp.’s Queensway project in central Newfoundland.  Included within Buchans’ Exploits Properties are 4 claims (100 ha) internal to New Found Gold’s Queensway property, located approximately 30 km southwest of New Found Gold’s Keats and Lotto gold discoveries.

Buchans also holds a 100% interest in its Tasiuyak gold property in Labrador, located 10 km south of Vale’s Voisey’s Bay nickel-copper-cobalt mine.

Exploring for Nickel-Copper-Cobalt in Labrador

Buchans has staked several properties in Labrador considered prospective for Voisey’s Bay-style nickel-copper-cobalt deposits, including 38 claims (9.5 km2) covering  troctolitic gabbros of the Pants Lake Intrusive Suite at South Voisey’s Bay, and five claims (1.25 km2) known as the Luk project, covering mineralized troctolite at Voisey’s Bay itself. 

South Voisey’s Bay Project

Previous explorers identified several showings and prospects within Buchans’ property, including drilled intercepts of 1.1 m of 11.9% Ni, 9.6% Cu, and 0.43% Co, 0.65 m of 1.93% Ni, 1.07% Cu and 0.26% Co, and 15.7 m averaging 1.13% Ni, 0.78% Cu, 0.20% Co drilled in the late 1990s.

Luk Project

Buchans acquired by staking five claims (1.25 km2) located 8 km southwest of Vale’s Voisey’s Bay nickel-copper-cobalt mine in northern Labrador which is reported to cover prospective troctolitic rocks of the same intrusive body that hosts the Voisey’s Bay mine. Buchans’ property is surrounded by mineral claims that comprise Vale’s Voisey’s Bay mine property  and Buchans plans to review available historic data to determine a strategy to advance this property.

Investment Overview

As a consequence of the Plan Arrangement that became effective December 31, 2019, the mineral exploration businesses and projects previously owned and operated by Buchans Minerals are now held by three separate public companies. Buchans Resources retains the base and precious metals projects in the Province of Newfoundland and Labrador. Its investment in base metal and silver project in Mexico is now held through its 25.9% shareholding in Xtierra Inc.; Canadian Manganese now holds the Woodstock Manganese Project in the Province of New Brunswick; and Minco Exploration holds the exploration projects in Ireland.

Xtierra Inc. ─ Silver-Lead-Zinc Exploration and Development in Mexico

Buchans holds 43 million shares in Xtierra Inc. (TSXV-XAG), and 5,000,000 share purchase warrants entitling Buchans to purchase one common share for $0.10 until April 27, 2023. The market value of this 26% holding in Xtierra shares at June 30, 2021 based on the market price of Xtierra shares on the TSX Venture Exchange was $3.0 million. Xtierra holds the Bilbao polymetallic sulphide and oxide replacement silver-lead-zinc-copper property, located in the Central Mineral Belt of Mexico, in the southeastern part of the State of Zacatecas, approximately 500 km northwest of Mexico City and is also pursuing new opportunities, including mineral exploration and development projects, and the potential acquisition of new mineral and other royalties.

For more information on Xtierra Inc., please visit www.Xtierra.ca

Minco Exploration plc ─ Zinc exploration in Ireland

Buchans holds a 12.6% interest in Minco Exploration, a company that holds zinc-lead exploration licences in the Republic of Ireland operated by its wholly owned subsidiaries, either alone or in joint venture with Boliden Tara Mines. Minco is participating at 20% in a joint venture with Boliden Tara Mines at 80% on Licence 1440R, which lies immediately adjacent to Boliden’s large 130 million tonnes Tara zinc-lead mine at Navan.

Minco Exploration is also participating in a joint venture with Boliden Tara Mines on Licence 3373, contiguous to the west with Licence 1440R, where Minco Exploration can earn up to a 75% interest, and in a joint venture with Boliden Tara Mines on twelve Prospecting Licences in County Galway where Minco Exploration can earn up to a 50% interest. Minco Exploration also holds two prospecting licences at Moate, County Westmeath.

For more information on Minco Exploration, please visit www.MincoExploration.com