Buchans Resources holds mineral rights covering approximately 252 km2 (25,200 hectares) considered prospective for VMS Zn-Pb-Cu-Ag-Au base metal deposits within the Buchans mining district of central Newfoundland. ASARCO mined approximately 5.6 million tonnes of ore averaging 18.4% Zn, 8.6% Pb, 1.6% Cu, 112 g/t Ag & 1.7 g/t Au from the Buchans deposits
This extensive land package hosts several undeveloped deposits including the Company’s large Lundberg stockwork sulphide deposit located beneath the former Lucky Strike massive sulphide orebody at Buchans. Numerous exploration targets proximal to the mined deposits have been identified on the Buchans VMS project and are in need of evaluation.
Several smaller “satellite deposits”, composed of higher-grade volcanogenic massive sulphide mineralization including Daniels, Bobbys and Tulks Hill deposits, each with excellent exploration potential and located within the Company’s Tulks North and Tulks Hill properties, all located less than 45 km south of Lundberg.
Buchans VMS Project
In January 2021, Buchans announced that it had entered into a Collaboration Agreement with Boliden Mineral AB under which Boliden will evaluate the Company’s Buchans VMS property in Newfoundland for possible future investment and participation.
The Collaboration Agreement outlines the terms and conditions under which Buchans will provide information about, and access to, the property for the purpose of facilitating Boliden’s evaluation. Boliden will share with Buchans technical data from its geology/geophysical review and deliver to Buchans relevant technical data compiled by Boliden with respect to the Project.
Boliden will contribute $600,000 to Buchans towards the costs of maintaining the Property and approved ongoing exploration and evaluation programs to be undertaken by Buchans on the Property during the Exclusivity Period. Boliden intends to complete its evaluation of the project during an exclusivity period ending December 31, 2021 2021 and the companies will negotiate the Earn-in and Option Agreement and the JV Agreement
The combination of Buchans’ in-depth, hands-on, knowledge of the historic Buchans camp with Boliden’s experience and technological expertise in near-mine exploration for VMS base metal deposits could lead to future discoveries of new buried, high-grade, orebodies and a revitalization of this world-renowned historic VMS mining camp. Boliden has had success in its near mine exploration for VMS deposits at the Garpenberg mine in Sweden and at the Tara mine in Ireland.
In March 2019 Buchans reported an updated pit-constrained Mineral Resource Estimate for its lower-grade bulk tonnage, Lundberg base metal deposit located at the former Lucky Strike mine site. Lundberg consist of stockwork mineralization situated below the previous mined Lucky Strike deposit which totaled 5.6 M tonnes averaging 18.4% Zn, 8.6% Pb, 1.6% Cu, 112 g/t Ag & 1.7 g/t Au.
The 2019 Mineral Resource Estimate includes In-pit 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) that contains more than 1.25 billion pounds Zinc Equivalent, with 97.8% of the Mineral Resources in the Indicated category. The Resource Estimate was estimated within an optimized pit shell at a cut-off grade of US$20/t NSR and is considered to reflect reasonable prospects for economic extraction in the foreseeable future using conventional open-pit mining methods. The resource applied metal price assumptions of US $1.20/lb Zn, $1.00/lb Pb, $3.00/lb Cu, $1,250/oz Au, and $17/oz Ag. Buchan’s Mine exploration
The Company is confident that its Buchans property holds potential for discovery of new VMS deposits comparable to historically mined orebodies within the current property. Buchans also recognizes that further enhancements for mineral development of Lundberg could be achieved through exploration by the discovery of additional mineral resources immediately adjacent to the Lundberg deposit. Buchans’ exploration activities throughout 2020 have been largely comprised of relogging of archived drill core drilled by past operators as well as compilation of historic work. Together these data are being compiled into a new digital, 3-dimensional model upon which the Company intends to drive future exploration programs
Relogging efforts are currently focused on two target areas, including the Middle Branch prospect located 3.5 km northeast of the Lundberg deposit where potential exists for discovery of new large Buchans orebodies; and the Two-Level (Lucky Strike) mine area located immediately north of the Lundberg deposit.
Based upon results to date, the Company believes the Two-Level area holds potential for discovery of additional high-grade ore that could complement Lundberg’s development or perhaps extend down plunge into areas capable of hosting much larger deposits that could be developed as new standalone underground mine developments.
The Two-Level target area covers the on strike extension of favourable geology extending westward from drilling completed by the Company in 2018. During this drilling campaign hole H-18-3524 intersected 1.0 m assaying 14.83% combined base metals (%Cu+%Pb+%Zn or “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) and the Company believes potential exists to discover additional high-grade resources in this area down plunge of previous exploration drilling.
Middle Branch Target
The Middle Branch prospect was discovered in 1960 by drilling by ASARCO that intersected 1.8 m (core length) assaying 0.4% Cu, 3.1% Pb, 4.8% Zn, 48 g/t Ag & 0.7 g/t Au at approximately 550 m depth. Though deep, this area is considered highly prospective for discovery of new larger deposits of high-grade Buchans-style mineralization.
Read more about the Buchans Base Metal Project here.
Other Central Newfoundland VMS Projects
Buchans owns mineral rights to several projects, that host 3 other deposits with NI-43-101 resource estimates at Bobbys Pond, Daniels Pond and Tulks Hill, and our neighbors, NorZinc control 3 other deposits including Lemarchant, Long lake and Boomerang.
Together these favorably situated “satellite” deposits could potentially contribute production as feed for a mine and mill development at Buchans and represent a significant base metal inventory with further exploration potential.
Read more about the Bobbys Pond Base Metal Project here.
Read more about the Daniels Pond Base Metal Project here.
Read more about the Tulks Hill Base Metal Project here.