New Joint Venture with Boliden in Ireland – Exploration for Zinc Adjacent to Tara Mine
Toronto, May 3, 2018 – Buchans Resources Limited (“Buchans” or the “Company”) is pleased to report that, through its wholly owned subsidiary Minco Ireland Limited (“Minco Ireland”), it has recently entered into a new joint venture agreement with Boliden Tara Mines DAC (“Boliden Tara Mines” or “the Tara Mine”), Boliden AB’s (“Boliden”) operating subsidiary in Ireland, on Prospecting Licence PL 3373, which lies adjacent to Boliden’s large 100 million tonne Tara zinc-lead mine at Navan, County Meath, Ireland.
Under terms of the agreement, Minco Ireland can earn a 75% joint venture interest in PL 3373 through expenditure of €250,000, in staged programmes, by August 31, 2024.
Boliden, through its subsidiary, has the right of off-take to purchase or toll process all ore that may be produced from the Licence area.
Five defined drill targets on PL 3373
Seismic surveying undertaken in 2011 and 2012 by Boliden Tara Mines identified a major east-west fault extending across PL 3373 and the western part of the adjoining license, PL 1440R.
Five structurally defined drill targets with potential for late-epigenetic mineralisation have been identified on PL 3373, located along a line which runs from eight to fifteen kilometres west of the Tara Mine, lying parallel and to the south of this major east-west fault and offset by a series of north east striking faults.
Buchans believes this east-west fault reflects reactivation of a major regional structural zone, long recognized in Britain and which can be traced into northern Europe where it impacts stratigraphy, structure and mineralization throughout a considerable period of geological history.
A similar east-west regional structure is believed to underlie the Pallas Green trend in Limerick, Ireland.
It was recognition of this structure or trend in the 1990’s that provided the initial impetus for the acquisition by Minco Ireland of the Pallas Green licences, where exploration by Minco Ireland and in joint venture with Noranda/Xstrata subsequently led to the discovery of the Pallas Green deposit, which now exceeds 40 million tonnes.
Minco Ireland later sold its 24% joint venture interest to Xstrata (Glencore) for US$19.5 million in 2011.
JOINT VENTURE AT TATESTOWN PL 1440R
Buchans, through its wholly owned subsidiary already holds a near 20% interest in the adjoining Prospecting Licence 1440R at Tatestown, which is being explored under a Joint Venture agreement with Boliden Tara Mines (80%), and which hosts part of the small Tatestown–Scallanstown zinc lead mineral deposit, (circa 1.5 million tonnes) located approximately 1.5 kilometres north west of the Tara Mine shaft and within about one kilometre of the nearest underground mine development.
The Tatestown–Scallanstown deposit lies within a well-defined, two-kilometre wide, north-east trending, zone of mineralisation, which is a peripheral extension of the large Navan mineralised system and which, traced by drilling, extends north for four or five kilometres from the cross-cutting, north-east trending Randalstown fault which separates it from the main orebody of the Tara Mine.
2017 Program at Tatestown
During 2017, Boliden Tara Mines, Operator of the JV, continued the infill drilling programme on PL 1440R, completing a further four drill holes between and peripheral to existing resource blocks.
Potentially economic grades and widths of mineralization were intersected in one of these four holes.
The drilling confirmed the continuity of the resource and the widespread nature of mineralization, with low grade mineralisation encountered all other holes in this area, and potential for extension.
A continuation of the infill-step out drilling is proposed by Boliden Tara Mines for 2018.
The Tara Mine at Navan
The Boliden Tara Mine is located at Navan, County Meath, approximately 50 kilometres northwest of Dublin.
The Navan deposit, discovered in 1970, is a world-class carbonate-hosted Zinc-Lead deposit. The Tara Mine is the largest zinc mine in Europe and one of the largest in the world, mining around 2.6 million tonnes per year and producing about 200,000 tonnes of zinc concentrate and 40,000 tonnes of lead concentrate annually.
In 2017 Boliden reported that successful exploration at the Tara Mine resulted in the discovery of new mineralisation, the Tara Deep deposit, with an inferred mineral resource totaling 10 million tonnes with a zinc grade of 8.5% and a lead grade of 1.8%.
Since mining began in 1977, more than 90 million tonnes of ore have been extracted, from the Tara Mine and the pre-mining resource exceeded 130 million tonnes, at an approximate average grade of 7.7% Zn, 1.9% Pb.
ABOUT BUCHANS RESOURCES
Buchans Resources Limited was incorporated on May 8, 2015 under the laws of the Province of Ontario, Canada. Buchans has interests in exploration and evaluation properties located in Canada, Ireland and the United Kingdom.
The Company was a wholly-owned subsidiary of Minco plc (“Minco”) until August 30, 2017, at which time all of the shares in the Company were transferred to Minco shareholders.
Buchans holds an extensive mineral land package in the Buchans district of central Newfoundland, with four undeveloped deposits including the large, lower-grade, Lundberg stockwork sulphide deposit, as well three smaller, higher-grade, massive sulphide VMS “satellite” deposits, each with excellent exploration potential.
Buchans also holds an approximate 22% shareholding in Xtierra Inc., (TSXV:“XAG”), which holds mineral properties in Mexico and approximately 2.3 million shares in Dalradian Resources Inc. (TSX:“DNA”) which is developing the Curraghinalt gold deposit in Ireland.
John F. Kearney: Chairman & Chief Executive +1 416 362 6686
Danesh Varma: Chief Financial Officer +44 (0) 207 653 9881
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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