Buchans Resources Increases Land Position in Buchans Mining Camp
Acquisition of former MacLean Mine property
Staking of Wiley Claims
Toronto, November 15, 2019 – Buchans Resources Limited (“Buchans” or the “Company”) announces that it has further expanded its large land position in the Buchans mining camp in central Newfoundland through the purchase of the mineral claims covering the former MacLean mine, a significant past producer of Zn-Pb-Cu-Ag-Au, and the competitive staking of the Wiley claims.
The MacLean mine property consists of six claims, comprising mineral rights covering 2 km2 , located two kilometres northwest of the town of Buchans, including the past producing MacLean mine where ASARCO reportedly mined approximately 3.6 million tonnes of ore grading 1.1% Cu, 7.5% Pb, 13.5% Zn, 118 g/t Ag & 0.9 g/t Au from 1959 until mine closure in 1984.
The 10.5 km2 Wiley Property covers favourable Buchans stratigraphy located approximately 4 kilometres southwest of historical mining sites.
With the addition of these two properties, Buchans Resources has now increased its Buchans Project land position to approximately 72 km2, including mineral rights covering essentially all previously mined orebodies and undeveloped deposits and prospects, and most of the favourable stratigraphy, within the Buchans mining camp. This camp is world-renowned as former operators, ASARCO, reportedly mined more than 16.2 million tonnes of high-grade ore from five separate deposits within Buchans Resources current property with a cumulative average grade of 14.51% Zn, 7.65% Pb, 1.33% Cu, 126 g/t Ag, and 1.37g/t Au. ASARCO’s mining operations at Buchans ran continuously from 1928 to mine closure in 1984.
In the heart of the camp, Buchans Resources holds the Lundberg deposit, with a current Mineral Resource Estimate that includes Indicated Mineral Resources of 16,790,000 tonnes grading 1.53% Zn, 0.64% Pb, 0.42% Cu, 5.69 g/t Ag and 0.07 g/t Au (3.38% Zn Eq) and In-pit Inferred Mineral Resources of 380,000 tonnes grading 2.03% Zn, 1.01% Pb, 0.36% Cu, 22.35 g/t Ag and 0.31 g/t Au (4.46% Zn Eq). The Lundberg deposit is mainly comprised of stockwork mineralization surrounding and lying below the former Lucky Strike orebody but includes some massive sulphide mineralization remaining unmined in the former ASARCO operations. [Technical Report entitled “NI 43-101 Technical Report and Mineral Resource Estimate on the Lundberg Deposit, Buchans Area, Newfoundland and Labrador, Canada”, dated April 15, 2019, filed on SEDAR].
The MacLean property is located approximately 600 metres northwest of Buchans’ Lundberg deposit. There are two past-producing orebodies on the property, the MacLean and MacLean Extension orebodies, and both are examples of ‘transported’ ores. These deposits are believed to have formed down paleo slope and were likely derived from the Lucky Strike massive sulphide orebody or perhaps some other earlier-deposited, up-dip source, or both. The transported ores are interpreted as having formed from disruption of in-situ massive sulphides and their host rocks and transportation of this material as debris flows along paleo topographic channels. The MacLean transported sulphide orebodies are overlain by fragmental barite.
More significantly; however, the property covers the inferred strike extension of favourable geology extending westward from exploration drilling completed by Buchans Resources on its adjoining claims in 2018. In the 2018 drilling, hole H-18-3524 intersected 1.0 m assaying 14.83% CBM as 8.70% Zn, 4.87% Pb, 1.26% Cu, 133.2 g/t Ag and 0.47 g/t Au (see Buchans News Release dated November 20, 2018).
This 2018 intercept is comprised of higher-grade sulphide mineralization extending down dip of the former Lucky Strike orebody and is located approximately 70 metres north of old mine workings.
This mineralization and its potential extension to the west, where it may extend onto the MacLean property, has been assigned a high priority by Buchans Resources for discovery of additional high-grade mineralization comparable to the high-grade ores historically mined by ASARCO in the Buchans camp, and was one of the prime factors motivating acquisition of the MacLean property, where Buchans revised stratigraphic and structural interpretations indicate potential for new blind deposits.
Buchans has purchased a 100% interest in the MacLean property with the grant of a 2% net smelter royalty (NSR) to the vendors, of which half (1%) can be purchased by Buchans for CDN$1.5 million, and the payment to the vendors of a total of $25,000, in cash or shares, in instalments over three years.
The Wiley property was acquired recently by staking and is held 100% by the Company without underlying royalties or interests. The 42-claim (10.5 km2) property is located approximately 4 kilometres southwest of historical mining sites and covers favourable Buchans stratigraphy.
The property has seen comparatively little previous exploration by past operators compared to areas surrounding the past producing mines and known prospects.
Prior to Buchans staking the property in 2019, previous property holders reported in 2013, the discovery of several sulphide-rich boulders within Buchans’ current claims that remain unsourced. The previous property holders filed their exploration work and results with the Newfoundland Government stating:
“Prospecting during the 2013 season resulted in the discovery of three base metal rich boulders along the shoreline of Wileys Lake. Boulder 1 returned grades of 10.6%Zn, 1.84%Cu, 2.27%Pb, 26.4 g/t Ag and 9.90%Zn, 1.31% Cu, 2.50 Pb, 19.2 g/t Ag respectively. Boulder 2, discovered approximately 500 meters north of Boulder 1, graded 13.5% Zn and 12.2 g/t/Ag. Boulder 3, discovered approximately 500 meters north of Boulder 2, returned grades of 3.20% Pb, 1.16% Zn and 9.1 g/t/ Ag. The angularity of the boulders suggest that they are locally derived… Boulder 1, the larger of the boulders, measures approximately 40 by 30 by 20 cm and is considered angular. Boulder 2 measures approximately 30 by 15 by 15 cm and is also considered angular. Boulder 3 measures 30 by 15 by 15 (cm) and is considered sub-angular. The angularity of boulders 1 and 2 suggest a local source”…
There has been no systematic follow-up of the boulders as outcrop is exceedingly scarce in the area. Previous drilling suggests the Buchans ore horizon rocks occur within the Wiley claims and remain under explored.
1 Readers are cautioned that the aforementioned assay results from the Wiley Property are historical in nature and have not been verified by a qualified person on behalf of the Company. As such, this information is presented for information purposes and should not be relied upon.
During 2018, Buchans completed a total of 8,000 metres of drilling in 38 holes exploring its Buchans and Tulks North base metal properties in central Newfoundland. Drilling in four target areas within a radius of 3.5 kilometres of Lundberg/Lucky Strike returned favourable results warranting further exploration for additional higher-grade resources. Buchans is confident that its now further expanded and consolidated central Newfoundland mineral properties hold potential for discovery of new VMS deposits, including deposits comparable to historically mined orebodies in the Buchans camp.
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 and approved the technical contents of this release.
ABOUT BUCHANS RESOURCES
Buchans Resources Limited 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 Canada, Ireland and the United Kingdom; gold properties in Newfoundland and in Labrador; nickel, copper, cobalt properties in Labrador and a manganese project in New Brunswick; and, indirectly through its 22% shareholding in Xtierra Inc. (TSXV: “XAG”), in base metal and silver projects in Mexico.
On November 4, 2019, Buchans announced a proposed group restructuring under a “Plan of Arrangement” whereby the shares of two wholly-owned subsidiaries will be distributed to Buchans Shareholders and both will become stand-alone, public companies (see Buchans Resources News Release November 4, 2019). Under the proposed Plan of Arrangement, if approved, the mineral exploration business and projects now owned and operated by Buchans will be held by three separate public companies, namely:
- Buchans Resources which will retain the base and precious metals projects in the Province of Newfoundland and Labrador and its investment in base metal and silver projects in Mexico through an approximately 22% shareholding in Xtierra Inc.;
- Canadian Manganese which will hold the Woodstock Manganese Project in the Province of New Brunswick; and
- Minco Exploration which will hold the mineral exploration projects in Ireland.
Completion Arrangement is subject to a number of conditions including approval by the shareholders at an Annual and Special Meeting to be held on December 10, 2019 and approval by the Ontario Superior Court.
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 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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