Buchans Continues to Intersect High-Grade Sulphides in Central Newfoundland
Buchans Resources Limited (“Buchans” or the “Company”) is pleased to announce additional positive results from its ongoing 8,000 metre drilling program at its base metal exploration projects in the Buchans area of central Newfoundland.
Results reported today include three additional holes drilled in the Buchans camp area to explore for high-grade massive sulphide mineralization in the vicinity of the former Lucky Strike massive sulphide orebody. At Lucky Strike Asarco is reported to have mined several zones of mineralization that collectively produced 5.6 million tonnes of ore with an average grade of 1.6% Cu, 8.6% Pb, 18.4% Zn, 112 g/t Ag & 1.7 g/t Au, before closing the mine in 1984.
The additional holes tested two target areas, one down-dip of the former Lucky Strike massive sulphide orebody, and the other at the Middle Branch transported breccia sulphide prospect, located approximately 3.5 km northeast of Lucky Strike.
The new drilling results indicate the Lucky Strike deposit appears to continue northwards beyond the limits of historic mining where potential remains to identify additional unmined higher-grade mineralization. Within this northern area, the Lucky Strike deposit occurs within a lobe of historically mined mineralization known as the Two-Level orebody from which Asarco mined 0.30 million tonnes averaging 0.50% Cu, 4.56% Pb, 8.02% Zn, 125 g/t Ag and 1.6 g/t Au.
Buchans Hole H-18-3424 intersected baritic sulphide breccia mineralization that now extends mineralization approximately 70 metres north of historic underground workings. Based on these results, further drilling is warranted and will be proposed for a future drilling program, after a review of historic drill holes from the area is completed.
Assay results are pending for an additional hole drilled at the Sandfill prospect, located approximately 2 km east of Lucky Strike, where recent drilling returned encouraging results, including an intercept of 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”). (See Buchans News Release September 17, 2018).
Meanwhile, Buchans is currently drilling what is anticipated to be the final drill hole of the 2018 drilling program. This hole, H-18-3526, is testing the Lucky Strike horizon approximately 225 metres northeast of the former Lucky Strike orebody, where the Company believes potential exists to identify additional massive sulphide resources.
Results from other drilling undertaken during the 2018 program are pending, including assay results of drilling on the Tulks North property, where the Company completed 5 holes to test the Daniels and Bobbys volcanogenic massive sulphide deposits down plunge of known mineralization.
Lucky Strike area:
Drilling, approximately 70 metres north of historic workings of the previously mined Lucky Strike orebody, intersected higher-grade sulphide mineralization down dip of the former mined orebody.
- Hole H-18-3524, drilled vertically from surface, intersected 8 m averaging 9.48% combined base metals (“CBM”) as 0.76% Cu, 3.15% Pb, 5.57% Zn, 90.5 g/t Ag and 0.37 g/t Au, including 1.0 m assaying 14.83% CBM as 1.26% Cu, 4.87% Pb, 8.70% Zn, 133.2 g/t Ag and 0.47 g/t Au.
- Hole H-18-3523, drilled approximately 70 m east of H-18-3524 failed to intersect significant higher-grade mineralization as the Lucky Strike horizon appears to have been faulted out at this location.
Middle Branch Prospect:
A single vertical drill hole was put down to test this transported breccia sulphide prospected, located 3.5 km northeast of the Lucky Strike deposit, as an initial test of this area’s potential to host additional, high-grade mineralisation in a less well explored area where the interpreted ore horizon occurs at depths of approximately 550 m below surface.
In this Middle Branch area, H-1910, drilled by Asarco in 1961 intersected 1.8 m assaying 0.4% Cu, 3.1% Pb, 4.8% Zn, 48 g/t Ag & 0.7 g/t Au (historic assays). Buchans new Hole H-18-3522, collared approximately 25 metres west of historic hole H-1910, intersected ore-horizon rocks between 533 and 566 m down the hole, including a 0.30 m section extending between 564.70 m and 565.00 m assaying 0.07% Pb, 0.16% Zn, 162.80 g/t Ag and 0.054 g/t Au.
The Company now intends to review additional historic drill holes as well as undertake borehole geophysical surveys prior to proposing additional drilling within this highly prospective, underexplored area.
The following table provides a summary of assay results discussed in this news release. Previous 2018 assays are available in the Company’s news releases dated July 31, September 17, and October 17, 2018.
|Hole||From m||To m||Width m||Cu %||Pb %||Zn %||Ag g/t||Au g/t||*CBM%||Comments|
|H-18-3523||No sig. min. Target Horizon faulted out at this location.||Lucky Strike-Two Level|
|H-18-3524||244.50||246.30||1.80||0.76||3.15||5.57||90.53||0.367||9.48||Lucky Strike-Two Level
All holes drilled from surface. True widths estimated to be 80-100% of reported widths. *CBM%-combined copper (Cu%) + lead (Pb%) + zinc (Zn%). Maps showing hole locations relative to the Lundberg resource are available at www.BuchansResources.com .
Geophysical Surveys Update
Borehole Electromagnetic Geophysical Surveys (“BHEM” surveys) are in progress at the Buchans and Tulks North properties. These surveys are being undertaken in select areas where the Company believes potential exists to discover additional higher-grade resources at depth. Areas to be surveyed include many of the holes drilled in 2018.
Buchans completed its SkyTEM airborne electromagnetic surveys over its Buchans and Tulks North properties at the end of October. Results are currently under review by the Contractor and delivery of final processed results is expected in the coming weeks.
The airborne electromagnetic survey will provide coverage over several of the Company’s key exploration prospects and deposits, as well as historic mine sites (See Buchans News Release October 11, 2018).
CENTRAL NEWFOUNDLAND ZINC LEAD PROJECTS
Buchans controls mineral rights covering 116 km2 (11,600 hectares) considered prospective for volcanogenic massive sulphide (“VMS”) Zn-Pb-Cu-Ag-Au base metal deposits within the Buchans district of central Newfoundland.
Asarco operated the Buchans mine continuously from 1928 until 1984 and is reported to have produced a total of 16.2 million tonnes of ore from five orebodies with a combined average grade of 14.51% Zn, 7,65% Pb, 1.33% Cu, 126 g/t Ag, and 1.37g/t Au.
Buchans extensive land package includes rights to several undeveloped deposits including the large, lower grade, Lundberg deposit, located beneath the former Lucky Strike orebody at Buchans, as well as several smaller “satellite deposits”, composed of higher-grade, massive sulphide mineralization, including the Daniels and Bobbys deposits located within the Company’s Tulks North property, 20 km south of Buchans.
Buchans’ exploration strategy in Newfoundland is to continue to build on its existing resource base with the aim of developing either a stand-alone open pit mine, centred on the larger lower grade Lundberg stockwork deposit, or a number of smaller higher grade VMS deposits that could be developed simultaneously and processed in a central milling facility, similar to the past-producing mines at Buchans or Duck Pond.
The 2018 8,000-metre drilling program is being undertaken to further delineate and upgrade the Company’s Lundberg deposit, as well as explore several other target areas located within a 3.5 kilometres radius of the former Lucky Strike mine, where the Company is exploring for additional massive sulphide resources.
The 2018 program also includes drilling of the Daniels and Bobbys satellite deposits, located within the Tulks North property approximately 20 km to the south, to explore for additional resources below known deposits.
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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