Buchans Continues to Intersect High-Grade Mineralisation In Exploration Drilling at Lundberg in Central Newfoundland

Buchans Continues to Intersect High-Grade Mineralisation In Exploration Drilling at Lundberg in Central Newfoundland

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Buchans Resources Limited (“Buchans” or the “Company”) announces additional results from its ongoing 7,000 metre drilling program at its base metal exploration projects in the Buchans area of central Newfoundland.

To date, the Company has completed 24 holes (total 3,000 m) at Buchans in 2018, including drilling at the Lundberg deposit itself and at the Oriental East and the Sandfill prospects, both located less than 3 kilometres from the Lundberg deposit.  These targets are being explored for additional nearby resources that could potentially be exploited with the proposed Lundberg open pit mine, either as additional development deposits or, potentially, stand-alone mines.

HIGHLIGHTS


Lundberg Deposit:

  • Drilling on the south-west limit of the Lundberg stockwork sulphide deposit intersected additional remnants of the former Lucky Strike high-grade massive sulphide orebody above Lundberg.
  • Hole H-18-3506, intersected 0.10 m assaying 5.53% Cu, 22.50% Pb, 8.50% Zn 83.3 g/t Ag and 0.022 Au below historic underground mine workings.
  • The 2018 resource drilling of the Lundeberg deposit has now returned multiple intersections of remnant high-grade massive sulphide ore near historic workings, including 1.0 m 21.99% combined base metals as well as 1.8 m assaying 32.22% combined base metals (July 31, 2018 press release). Buchans is cautiously optimistic that the occurrence of remnants of high-grade Lucky Strike ore above Lundberg may benefit open-pit mine development of the Lundberg deposit.
  • Additional delineation drill holes designed to test Lundberg below historic underground workings have been completed and assays are pending.

Sandfill Prospect

  • Drilling at the undeveloped Sandfill prospect, located 2.5 km northeast of Lundberg, intersected several sections of sulphide debris breccia akin to “transported ores” mined historically in Buchans.
  • Hole H-18-3513 intersected mineralization at multiple intervals between depths of 306 and 353 m, including:

 7.0 m averaging 0.69% Cu, 1.58% Pb, 5.15% Zn, 33.5 g/t Ag and 0.21 g/t Au (7.4% combined Cu+Pb+Zn %) or (“%CBM”),

including 1.0 m assaying 2.96% Cu, 5.13% Pb, 15.5% Zn, 96.4 g/t Ag and 0.27 g/t Au (23.6% CBM); as well as a lower section of 3.10 m averaging 0.22% Cu, 1.99% Pb, 4.19% Zn, 52.04 g/t Ag and 0.25 g/t Au (6.4% CBM),

including 1.0 m assaying 0.56% Cu, 5.50% Pb 11.40 % Zn, 152.8 g/t Ag and 0.70 g/t Au (17.5% CBM).

  • Based on these results from Sandfill, and review of adjacent historic holes, Buchans believes potential exists to identify additional “transported” mineralization within a poorly-tested, interpreted west-southwest trending ore channel. With the location of this mineralization now established by down-hole orientation surveys, Buchans is planning additional holes to explore this trend for additional resources of “transported” breccia-style mineralization comparable to several of the Camp’s historic high-grade mines where Asarco mined 16.2 million tonnes averaging 14.51% Zn, 1.33% Cu, 7.56% Pb, 126 g/t Ag & 1.37 g/t Au from insitu massive sulphide and transported breccia sulphide ores between 1928 and 1984.

Oriental Target

  • Buchans drilled five shallow holes to the east of the former Oriental mine, located two kilometres east of Lundberg, four of which returned intercepts of near-surface low-grade base metal mineralization including:

Hole 18 -3511 which intersected 3.30 m averaging 0.27% Cu, 0.48% Pb, 2.80% Zn, 7.6 g/t Ag and 0.120 g/t Au (3.55% CBM).

ASSAY RESULTS


The following table provides a summary of drilling assay results discussed within this News Release.  Previous 2018 drilling assays are available in the Company’s News Release dated July 31, 2018.

Hole From m To m Width m Cu % Pb % Zn % Ag g/t Au g/t *CBM% Comments
H-18-3506 81.85 81.95 0.10 5.53 22.50 8.50 83.30 0.022 36.53 Lundberg-Lucky Strike
H-18-3507 21.20 22.00 0.80 1.49 0.09 0.12 7.50 0.154 1.70 Engine House
H-18-3508 20.60 29.00 8.40 0.19 0.90 1.40 82.01 0.585 2.50 Oriental East
incl. 20.60 27.60 7.00 0.20 0.99 1.57 95.41 0.670 2.76  
H-18-3509 22.00 27.60 5.60 0.06 0.85 1.39 41.57 0.407 2.30 Oriental East
H-18-3510 No sig. min. Hole drilled into footwall below overburden. Oriental East
H-18-3511 31.70 35.00 3.30 0.27 0.48 2.80 7.59 0.120 3.55 Oriental East
H-18-3512 39.00 43.50 4.50 0.04 0.46 1.03 10.34 0.090 1.54 Oriental East
H-18-3513 306.00 321.00 15.00 0.36 0.87 2.74 22.25 0.154 3.97 Sandfill
incl. 311.00 318.00 7.00 0.69 1.58 5.15 33.50 0.213 7.41  
incl. 311.00 312.00 1.00 0.16 1.32 3.27 31.30 0.357 4.75  
  313.00 314.00 1.00 2.96 5.13 15.50 96.40 0.271 23.59  
  314.00 315.00 1.00 0.23 1.77 3.30 33.00 0.304 5.30  
  315.00 316.00 1.00 0.27 0.43 5.21 24.10 0.139 5.91  
  317.00 318.00 1.00 1.09 2.17 7.90 41.00 0.354 11.16  
and 350.00 353.10 3.10 0.22 1.99 4.19 52.04 0.252 6.40  
  350.00 351.00 1.00 0.08 0.54 1.30 6.20 0.037 1.92  
  351.00 352.10 1.10 0.04 0.12 0.26 2.10 0.043 0.42  
  352.10 353.10 1.00 0.56 5.50 11.40 152.80 0.698 17.46  

* CBM%-combined copper (Cu%) + lead (Pb%) + zinc (Zn%).  All holes were drilled from surface as vertical holes except for H-18-3506 drilled at a dip of -45 ° towards true North.  True widths are estimated to be 80-100% of reported widths.  A map showing hole locations relative to the Lundberg resource is available at www.BuchansResources.com

Drilling continues at Buchans with approximately 3,000 metres drilled to date in 24 holes with a second drill added to the Buchans project.  Additional targets include the West Orebodies and Two-Level deposits near Lundberg, as well as other targets located up to 3.5 km from Lundberg, including the undeveloped Middle Branch prospect, a transported style sulphide prospect located approximately one kilometre further northeast and on trend of the Sandfill prospect.

DRILLING AT DANIELS – UPDATE


Drilling also continues on the Company’s Tulks North property with approximately 1,700 metres drilled to date in 3 holes at the Daniels deposit (assays pending).  The Tulks North property is located 20 kilometres south of Buchans, where it hosts two massive sulphide deposits with National Instrument 43-101 compliant resource estimates (see Company’s website for details).

Drilling is being undertaken at both the Daniels and Bobbys deposits to explore for larger accumulations of ore-grade massive sulphides down-plunge of these known deposits.  The Company intends to utilize borehole electromagnetic geophysical surveys to complement its exploration efforts as these deposits.

Assays and additional exploration results will be released when received and analysed.

CENTRAL NEWFOUNDLAND ZINC LEAD PROJECTS


In central Newfoundland Buchans is currently undertaking a 7,000-metre drilling program to further delineate and upgrade the Company’s Lundberg deposit, as well as explore several other target areas located less than 3.5 kilometres from Lundberg (Buchans News Release dated May 25, 2018) where the Company is exploring for additional resources that could be exploited in conjunction with the proposed Lundberg open-pit mine.

Buchans has engaged Mercator Geological Services of Dartmouth, Nova Scotia to prepare a new resource estimate expected to be available in Q4 of 2018.  The results from the 2018 Lundberg drilling will be compiled with previous drilling results obtained in 2014 and 2015 that extended mineralization beyond the limits of the defined resource estimate compiled in 2013.

In addition, Buchans has engaged AGP Mining Consultants Inc. of Toronto, to conduct an internal scoping study to evaluate and assess possible mining and processing scenarios for development of Lundberg as an open pit mine, including further application of Dense Media Separation (“DMS”) technology.  It is expected that the updated resource estimate and scoping study will provide a path forward for completion of a Preliminary Feasibility Study (PEA) on Lundberg as an open-pit, zinc, lead and copper mine.

 QUALIFIED PERSON


 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. 

SAMPLING PROCEDURE

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.

Enquiries:       info@buchanslimited.com

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.

FORWARD-LOOKING STATEMENTS

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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