Buchans Announces Positive Exploration Results from Gold Projects in Newfoundland and Labrador
New Nickel-Copper-Cobalt claims staked near Voisey’s Bay in Labrador
Toronto, December 14, 2018 – Buchans Resources Limited (“Buchans” or the “Company”) is pleased to announce positive results from its 2018 exploration programs on its Lake Douglas gold project in Newfoundland and its Tasiuyak gold project near Voisey’s Bay in Labrador.
The 2018 programs included soil geochemical surveys over a portion the Company’s Lake Douglas gold property, located approximately 30 km northeast of Marathon Gold’s (MOZ:TSX) Marathon gold deposit in central Newfoundland, and a prospecting program on the Company’s Tasiuyak gold property, located 10 km south of Vale’s Voisey’s Bay nickel-copper-cobalt mine in north-eastern Labrador.
The above programs represent additional programs completed in 2018 outside of exploration undertaken on the Company’s flagship Buchans base metals projects in central Newfoundland. In view of the favourable results from both properties, Buchans is planning additional work for these properties in 2019.
Buchans is also pleased to announce that it has opportunistically staked 5 claims (1.3 km2) located approximately 8 km southwest of Vale’s Voisey’s Bay mine in northern Labrador, believed to be prospective for extensions to the Voisey’s Bay nickel, copper cobalt deposit.
Lake Douglas Gold Project, central Newfoundland
A soil sampling program was completed on this 83-claim (20.8 km2) gold property in the summer months of 2018. Approximately 700 soil samples were collected on the north-western portion of the property. Results include detection of a 200 m long anomaly with values up to 137 pb Au and a second anomaly defined as a single line, 3-station anomaly with values up to 317 pb Au.
Buchans’ Lake Douglas gold project is located less than 7 km on strike of gold occurrences discovered on properties controlled by Antler Gold (Alder and Jigger prospects) and approximately 30 km northeast on strike of Marathon Gold’s Marathon gold deposit.
Given these positive 2018 results, the Company is planning additional work for this project in 2019.
Tasiuyak Gold Project, Labrador
Bedrock sampling at the VBE-2 gold prospect returned positive results from the main outcrop exposure and along strike in both strike directions (see Tasiuyak property maps below).
Sawn bedrock channel samples collected from the main exposure returned assays averaging 8.51 g/t Au & 0.93 g/t Ag over 4.8 m, including 31.91 g/t Au over 0.85 m, as well as 15.83 g/t Au over 0.65 m. These results exceed historic surface sample assays derived from chip sampling of the showing in the 1990’s that returned a highest assay of 18.29 g/t Au over 1.0 m.
In addition, the VBE-2 prospect’s favourable host paragneiss horizon has now been traced over a 3 km strike where limited prospecting has returned anomalous assays, including sawn channel sample assays of up to 0.69 g/t Au over 0.50 m located 2 km south along strike of the main bedrock exposure, and bedrock grab samples that returned anomalous assays up to 0.02 g/t Au located 700 m north on strike of the main exposure.
Buchans’ 100%-owned Tasiuyak property consists of 46 claims (11.5 km2) covering the historic VBE2 gold prospect and favourable stratigraphy along strike of the showing. Historic drilling of the VBE-2 gold prospect in 1997 (9 holes over 300 m strike) is reported to have returned intercepts of 5.5 g/t Au over 2.1 m, 4.2 g/t Au over 3 m, and 4.1 g/t over 2.1 m. Buchans believes this mineralization may be analogous to mineralisation at the former Homestake mine in South Dakota.
Buchans wishes to acknowledge the Nunatsiavut Government and community of Nain for providing beneficial operational support for the program and is particularly pleased to have employed experienced local prospectors from Nain. Buchans exploration efforts were also complemented by input from the Nunatsiavut Government’s Department of Lands and Natural Resources.
New Property – Luk Nickel Property, Voisey’s Bay, Labrador
Buchans has opportunistically staked 5 new claims (1.3 km2) located approximately 8 km southwest of Vale’s Voisey’s Bay mine in northern Labrador (see property map below).
Buchans’ property, known as the Luk Property, is reported to cover favourable troctolite of the same intrusive body that hosts the Voisey’s Bay mine. Historic information on the property indicate surface gossan samples collected within or immediately adjacent to Buchans’ property returned grab sample assays of up to 1.86% Ni, 0.95% Cu, 0.165% Co, as well as drilled intercepts of up to 7.4 m averaging 0.45% Ni, 0.18% Cu, 0.03% Co (historic assays not confirmed by Buchans).
Buchans’ Luk property is surrounded by mineral claims that comprise Vale’s Voisey’s Bay mine property. Vale recently announced a $US 2 billion mine expansion to develop two additional deposits as underground mines adjacent to the currently operating Voisey’s Bay Ovoid open pit mine. With the expansion, Vale now expects mining operations to continue at Voisey’s Bay until 2034.
Buchans intends to review available historic data on the Luk claims prior to determining a strategy to advance this prospective nickel/copper/cobalt property.
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.
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