BUCHANS ANNOUNCES 2018 EXPLORATION DRILLING PROGRAM IN NEWFOUNDLAND
Toronto, May 25, 2018 – Buchans Resources Limited (“Buchans” or the “Company”) reports that its planned 2018 exploration program in Newfoundland includes 5,000 metres of drilling in approximately twenty holes and will be the largest drilling program undertaken at Buchans in the past five years.
CENTRAL NEWFOUNDLAND ZINC LEAD PROJECTS
Buchans controls mineral rights covering 115 km2 (11,582 hectares) considered prospective for volcanogenic massive sulphide (“VMS”) Zn-Pb-Cu-Ag-Au base metal deposits within the Buchans district of central Newfoundland.
Various mines operated in the Buchans area continuously from 1928 until 1984 and are reported to have produced, in total, 16 million tonnes of ore from five orebodies, with reported total average grades of 14.51% Zn, 7,65% Pb, 1.33% Cu, 126 g/t Ag, and 1.37g/t Au.
Buchans holds an extensive mineral land package in the Buchans district with four undeveloped deposits including the large, lower grade, Lundberg deposit, as well three smaller, higher-grade, massive sulphide VMS “satellite” deposits, located less than 20 km south of Buchans, namely the Daniels, Bobbys and Tulks Hill deposits, all with excellent exploration potential.
The planned 2018 exploration programs include 2,200 metres of drilling at Buchans, plus 2,800 metres of drilling at Tulks North (Daniels & Bobbys deposits), for a combined total of about 5,000 metres in approximately twenty holes.
Lundberg -1,000 m drilling in 10 holes & resource update
The Lundberg stockwork sulphide deposit, located in the town of Buchans, is the largest and most advanced deposit with respect to metal inventory, resource definition, mine planning, metallurgical testing and economic studies, and was evaluated by a National Instrument 43-101 compliant positive Preliminary Economic Assessment in 2011 as a stand-alone open pit mine and processing project.
The planned Lundberg program for 2018 includes drilling recommended by Mercator Geological Services, based on pit models designed in 2014 to upgrade select portions of the current resource from the Inferred to Indicated category. In total, approximately 1,000 metres of drilling is planned in approximately 10 holes.
This program will include preparation of a revised resource estimate incorporating results from the 2018 drilling as well as drilling results obtained since the last resource estimate completed in 2013, including results from holes drilled south of Lundberg in 2014 and 2015 that extended mineralization within the Lucky Strike and Engine House zones.
2018 EXPLORATION DRILLING IN NEWFOUNDLAND
In 2017, a program of relogging of historic archived drill cores was undertaken to assess potential for discovery of additional high-grade and near-surface lower grade resources at Buchans, within a two-kilometre-long mineralized corridor extending between the former Lucky Strike and Oriental high-grade massive sulphide mines, including the undeveloped Old Buchans North prospect. Several target areas, at depths of less than 350 metres, comprised of underexplored favourable stratigraphy, occurring down dip of previously mined orebodies and undeveloped prospects, have now been identified in this area.
Exploration drilling compromising about 1,300 metres in seven holes is planned to test several targets near Lundberg that may identify additional resources less than three kilometres from the deposit that could be exploited by Lundberg’s mining infrastructure as additional pits and/or underground development sites.
Targets include the West Orebodies area (southeast of Lundberg); Two-Level deposit area (north of Lundberg); as well as Oriental East; and the Sandfill prospect, both located less than 2.5 kilometres east of Lundberg.
At the West Orebodies, a single 350 m hole is planned to test the northern limits of this previously mined high-grade copper-rich massive sulphide deposit (<100,000 tonnes). This deposit is located 350 metres southwest of Lundberg and was originally discovered in 1939, mined in the 1940s, and has not been drilled since 1953. Modern electromagnetic geophysical surveys will be utilized to enhance exploration in this area.
At Two-Level, a single 350 m hole is proposed to test the northern, down dip potential of the former Two-Level transported ore deposit lying immediately north of Lundberg. The hole will be an initial test of the area’s potential to host additional deposits of Two-Level style mineralization (historic production totaling ~300,000 tonnes of 13.1% combined base metals) at depths of less than 400 metres. Historic drilling in this area has left sufficient space to accommodate additional resources that could potentially contribute to Lundberg’s development.
At Oriental East, four shallow holes (total 180 metres) are proposed to test the eastern limits of low to moderate grade mineralization beneath overburden, east of the former Oriental orebody. At this location, historic drilling undertaken at the end of the Oriental Mine’s operation, intersected mineralization averaging ~5% combined base metals over thicknesses up to ~16 m. Four holes are proposed as an initial test of this mineralization; and if warranted, the program could be expanded to ~1,000 m in 18 holes to yield an initial resource estimate at this location.
At Sandfill, a single 450 metre hole is proposed to test the centre of the historic Sandfill transported ore prospect (historic, non-43-101 compliant resource of 68,000 tonnes averaging 1.5% Cu, 4.7% Pb, 10.0% Zn, 85.7 g/t Ag & 0.34 g/t Au). This hole, with anticipated better core recovery, should allow more complete assaying of the mineralization and better establish the mineralization’s location, as historic drilling was likely prone to hole deviation (narrow diameter holes not surveyed by downhole orientation surveys). Relogging by Buchans suggests Sandfill’s mineralization is more widespread than originally thought and further suggests historic assaying may have been too limited to assess the potential of this target.
Tulks North Targets (Daniels and Bobbys deposits)
Observations generated by the relogging program and other data reviews suggest excellent potential exists beneath the Daniels and Bobbys deposits for discovery of additional resources below 450 metres depth.
Exploration drilling is planned to test both the Daniels and Bobbys deposits at depth. Five holes are proposed as an initial test to determine if these deposits extend and improve at depth. Drilling is proposed to test areas where previous drilling results indicate the deposits may be plunging at depth, where potential remains for discovery of additional, larger accumulations of ore-grade massive sulphides.
Daniels Deposit (1,800 m in 3 holes)
At the Daniels deposit, depth potential is highlighted by the Massive Pyrite zone, a lobe of massive pyrite that achieves true thicknesses that locally exceed 24 metres and exhibits locally elevated base metal concentrations, suggesting the lobe may represent a distal pyritic margin of a larger, higher grade massive sulphide zone at depth.
Drilling will be undertaken to test this deposit at depth, in areas where previous drilling identified thickening within a sheet of essentially barren pyrite (Massive Pyrite Lobe) that remains open in several directions where the sheet may grade into additional accumulations of ore-grade massive sulphides. Three holes are proposed for a total of 1,800 metres of drilling.
Bobbys Deposit (1,050 m in 2 holes)
At the Bobbys deposit, depth potential for additional massive sulphides is highlighted by two main plunge directions that remain poorly explored below the known resource, where additional resource may yet be discovered.
Drilling will be undertaken to test this deposit at depth, in areas where previous drilling results define possible plunge directions where the deposit may continue and improve at depth. Two holes are proposed for a total of 1,050 metres of drilling.
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 Canada and, indirectly, in base metal and silver projects in Mexico. At March 31, 2018 Buchans also held 2.37 million shares of Dalradian Resources Inc, which is developing the Curraghinalt gold deposit in Ireland.
Buchans also holds an approximate 22% shareholding in Xtierra Inc., (TSXV: “XAG”), which holds mineral properties in Mexico.
At March 31, 2018, Buchans held $2,902,422 in cash and cash equivalents and marketable securities of $2,277759 and had a working capital surplus of $4,951,400.
John F. Kearney: Chairman & Chief Executive +1 416 362 6686
Danesh Varma: Chief Financial Officer +44 (0) 207 653 9881
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.
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