Buchans Updates Expanded Exploration Programs in Newfoundland, Labrador and Ireland at Annual Meeting of Shareholders
Toronto, June 26, 2018 – Buchans Resources Limited (“Buchans” or the “Company”), held its Annual Meeting of Shareholders in Toronto, Canada on June 25, 2018.
At the meeting Chairman and Chief Executive, John Kearney, provided shareholders with an update on Buchans expanded exploration programs in Newfoundland, Labrador and Ireland.
5,000 metre drilling programs on Buchans base metal projects in central Newfoundland
- Geochemical survey on Lake Douglas gold project Newfoundland
- Two new projects exploring for gold and nickel-cobalt in northern Labrador
- Joint Venture with Boliden for zinc exploration in Ireland
CENTRAL NEWFOUNDLAND ZINC LEAD PROJECTS
In central Newfoundland Buchans is currently undertaking a 2,200-metre drilling program to further delineate and upgrade the Company’s Lundberg deposit, as well as explore several target areas located within three kilometres where the potential exists to identify additional resources that could be exploited together with Lundberg as possible additional open pits and/or underground development sites.
The planned 2018 exploration program includes about 5,000 metres of drilling in approximately twenty holes, which is the largest drilling program undertaken at Buchans in the past five years.
Drilling at Lundberg commenced in May and approximately 680 metres of drilling have been completed in six holes. Samples from the first four holes have been submitted for assay and results are pending.
Results from the Lundberg drilling (900 m in 8 holes) will be compiled with previous drilling results obtained in 2014 and 2015 that extended mineralization beyond the limits of the most recent resource estimate compiled in 2013. Buchans has engaged Mercator Geological Services of Dartmouth, Nova Scotia to prepare a new resource estimate which is expected to be available in September.
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 copper mine.
On completion of the Lundberg drill holes, the drill will move off the deposit to explore other targets areas located within three kilometres, where the potential exists for discovery of additional near-surface lower grade resources comparable to Lundberg; or deeper buried, high-grade resources similar to high-grade orebodies historically mined at Buchans.
The other targets to be tested by the 2018 drilling program (~1,300 m drilling in 7 holes) are the West Orebodies area (350 m southeast of Lundberg); Two-Level deposit area (50 m north of Lundberg); and the Oriental East and Sandfill prospects, both located less than 2.5 kilometres east of Lundberg.
LAKE DOUGLAS GOLD PROPERTY, CENTRAL NEWFOUNDLAND
At the Company’s 100%-owned Lake Douglas gold project, Buchans has initiated soil sampling geochemical surveys (~1,000 samples; 25 line-km) over a portion of the Company’s 20.75 km2 property covering favourable geology and structure, located 35 km northeast along strike of Marathon Gold Corporation’s (“Marathon”) Marathon deposit.
The Marathon gold deposit is the largest of several deposits assessed by Marathon’s recently completed positive Preliminary Economic Assessment that evaluated development of an open pit mine to produce 185,000 ounces of gold per year from several deposits over an 11-year mine life producing approximately 1.9 million ounces of gold (See Marathon, May 17, 2018 press release).
Buchans conducted a reconnaissance examination of its Lake Douglas property in 2016 that confirmed the presence of favourable geology on Buchans’ claims. Limited prospecting conducted during this examination identified unsourced mineralized quartz float assaying 913 ppb (0.9 g/t) gold.
NEW LABRADOR PROJECTS
Tasiuyak Property, Labrador – Gold
Buchans has recently embarked on a new gold exploration property in northern Labrador, located 10 kilometres south of Vale’s Voisey Bay nickel-copper-cobalt mine. This 100% Buchans-owned property includes mineral rights to 11.5 km2 covering a gold prospect discovered by previous explorers while exploring for nickel during the Voisey’s Bay exploration rush in the mid-1990s.
Buchans is excited to have acquired this project which is believed to have potential to host significant orogenic-style gold deposits associated with a major ~1.85 billion-year-old collisional boundary between two major geological terranes. The age of this collisional boundary is considered important as it coincides with an internationally recognized, prolific period for formation of orogenic gold deposits around the globe and bears some geological similarity with the former Homestake mine in South Dakota.
Buchans believes that its Tasiuyak property represents an excellent exploration opportunity for discovery of new gold deposits in a frontier area. A field exploration crew will be mobilised to the property in July to complete an initial reconnaissance prospecting program and examination of the known showing.
South Voiseys Bay Property, Labrador – `Nickel-Copper-Cobalt `
Buchans also recently acquired a new nickel-copper-cobalt exploration property in northern Labrador, located 85 kilometres south of Vale’s Voisey Bay nickel-copper-cobalt mine.
This 100%-owned property includes mineral rights to 9 km2 covering a portion of the Pants Lake troctolitic olivine gabbro complex, which is widely recognized as being a geologic environment similar to the Voisey’s Bay mine.
Buchans’ property has received significant historic exploration, including drilling by previous operators that returned mineralized intercepts of magmatic-style nicklel sulphide mineralization including: 0.65 m assaying 1.93% Ni, 1.07% Cu and 0.26% Co, 15.7 m averaging 1.13% Ni, 0.78% Cu, and 0.20% Co, and 1.1 m of 11.9% Ni, 9.6% Cu, and 0.43% Co.
Buchans’ property hosts the highest grade intersections returned from the entire Pants Lake Complex to date. The property is surrounded by mineral rights covering the remainder of the Pants Lake Complex controlled by Fjordland Resources and Commander Resources Ltd. within their South Voisey’s Bay nickel-copper-cobalt project.
EXPLORATION FOR ZINC IN IRELAND
In Ireland, Buchans has also recently entered into a new joint venture agreement with Boliden Tara Mines on Licence 3373, contiguous to the west with Licence 1440R which lies immediately adjacent to Boliden’s large 130 million tonne Tara zinc lead mine at Navan.
Under this agreement Buchans can earn a 75% joint venture interest through expenditure of €250,000, in staged programmes, by August 31st, 2024.
In the first quarter of 2018 Buchans completed two drill holes for a total of 636 metres to define the location of the boundary fault and assist in structural interpretation.
INVESTMENT IN DALRADIAN RESOURCES
Buchans holds 2.37 million shares of Dalradian Resources Inc, which is developing the Curraghinalt gold deposit in Ireland.
On June 21, 2018 Dalradian announced it had entered into an agreement with Orion Mine Finance whereby Orion will acquire Dalradian in a recommended cash offer of $1.47 per share, representing a 62% premium to the closing price of the Dalradian Shares on the Toronto Stock Exchange on June 20, 2018.
The offer values Buchans shareholding in Dalradian at $3.5 million.
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. Historic assays for the Tasiuyak and South Voiseys Bay properties compiled from historic company assessment reports filed with the Government of Newfoundland and Labrador. Buchans has not independently verified historic assays presented herein.
MATTERS AT THE ANNUAL MEETING OF SHAREHOLDERS
Election of Directors
All the nominees for election as director: Messrs. Kearney, Downey, McKillen, Power, McParland and Varma were unanimously re-elected as directors by a show of hands. The detailed results of the proxies submitted for the vote on the election of directors are as follows:
|Director||Votes For||% of Votes For||Votes Withheld||% of Votes Withheld|
|John F. Kearney||8,130,485||100%||Nil||0.00%|
Appointment of Auditors
UHY McGovern Hurley LLP Chartered Accountants were re-appointed as the Company’s Auditors for the current year and the directors were authorized to fix the remuneration of the Auditors.
Approval of Restricted Share Units Plan
By a unanimous vote on a show of hands the Restricted Share Unit Plan as set forth in the Information Circular dated May 11, 2018 was approved with 100% of votes in favour.
Approval of Deferred Share Unit Plan
By a unanimous vote on a show of hands, the Deferred Share Unit Plan as set forth in the Information Circular dated May 11, 2018 was approved with 100% of votes in favour.
Approval of Stock Option Plan
By a unanimous vote on a show of hands, the Stock Option Plan as set forth in the Information Circular dated May 11, 2018 was approved with 100% of votes in favour.
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 through its 22% shareholding in Xtierra Inc. (TSXV: “XAG”), in base metal and silver projects in Mexico. Buchans also holds 2.37 million shares of Dalradian Resources Inc, which is developing the Curraghinalt gold deposit in Ireland.
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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