Annual Meeting of Shareholders 2020 – Corporate Update
Toronto, June 26, 2020 – Buchans Resources Limited (the “Company” or “Buchans”), a Canadian base metal mineral exploration and development company, reports that it held its Annual Meeting of Shareholders today in Toronto.
At the meeting, John Kearney, Chairman and Chief Executive Officer, provided shareholders with an update of the current position and outlook for the Company.
Exploration in Central Newfoundland
To date in 2020, the Company’s exploration activities have, unfortunately, been impacted by COVID-19 and the measures imposed by the Canadian and Newfoundland governments to address the ongoing Pandemic.
Shareholders will recall that in 2019, Buchans commenced the incorporation of its extensive relogging data into an expanded digital database that will be used to create a new, digital, 3-dimensional geological model extending out from previously mined orebodies to key undeveloped prospects and exploration targets.
Work on generating the digital 3D model is progressing with expanded efforts to compile data obtained by the Company’s relogging program together with the substantial historical data available.
Buchans believes creation of a digital 3-dimensional geologic model will greatly enhance the Company’s ability to successfully target and explore for new, buried, high-grade Buchans orebodies that may either augment development of the Company’s Lundberg deposit, or perhaps be developed as new stand alone mines, and the model’s construction is a priority for 2020.
The database is currently being developed in cooperation with Mercator Geological Services of Dartmouth, Nova Scotia, who previously constructed a deposit-scale model for the Lundberg deposit.
Ongoing work on the 3D model will be complemented by limited field-based activities to be undertaken during the summer field season in adherence to government prescribed social distancing and health-related guidelines. These activities will consist of property visits and ground checks, including limited prospecting and additional relogging of archived drill cores once the Provincial Government’s core storage facility in Buchans reopens.
Other activities previously planned for 2020, including diamond drilling, have been deferred for the time being pending improvements in operational and market conditions. In response to difficulties being encountered by mineral exploration companies during this COVID pandemic, the government of Newfoundland and Labrador has waived assessment work requirements for 2020.
We remain confident that the Company’s Newfoundland mineral properties hold potential for discovery of new VMS deposits comparable to historically mined orebodies in the Buchans camp. The Company’s land position now exceeds 72 km2, and includes mineral rights covering essentially all previously mined orebodies, undeveloped deposits and prospects, as well as most of the favourable stratigraphy within the Buchans mining camp, where Asarco mined more than 16.2 million tonnes 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 mine closure in 1984.
Buchans also controls several projects outside of its central Newfoundland VMS properties as additional exploration opportunities with potential to generate significant shareholder value. These properties include nickel-copper-cobalt projects in the Voisey’s Bay area of Labrador as well as gold projects in Newfoundland and Labrador. These properties continue to be maintained as highly prospective exploration projects.
Group restructuring Completed
Earlier in the year, the Company completed its group reorganization whereby the shares of two wholly-owned subsidiaries were distributed to shareholders. Under the Plan of Arrangement, shareholders retained their existing shares of Buchans, and the Company distributed to its shareholders, pro rata, all of the shares of Canadian Manganese Company Inc, and exchangeable warrants entitling shareholders to receive either one share of Minco Exploration Limited or 0.25 additional shares of the Company, at their option, for each share of Buchans held.
ELECTION OF DIRECTORS AT AGM
All of the nominees for re-election as director: Messrs. John Kearney, Patrick Downey, Terence McKillen, Peter McParland, Michael Power and Danesh Varma, were unanimously re-elected as directors, to serve until the next annual general meeting of shareholders.
RE-APPOINTMENT OF AUDITORS
McGovern Hurley LLP Chartered Professional Accountants were re-appointed as Auditors for the current year and the directors were authorized to fix the remuneration of the Auditors.
Buchans is incorporated under the laws of the Province of Ontario, Canada and is a “reporting issuer” in the Provinces of Alberta, British Columbia, Nova Scotia and Newfoundland and Labrador.
Buchans Resources currently holds interests in zinc, lead, silver properties located in Newfoundland; gold properties in Newfoundland and in Labrador; nickel, copper, cobalt properties in Labrador 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
Danesh Varma: Chief Financial Officer + 44 (0)77409 32766
Peter McParland: Director – Ireland +353 (0) 46 907 3709
Additional information is available on the Buchans website at www.BuchansResources.com
This news release 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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