Bobbys Pond Deposit

Overview

Buchans Resources controls a 100% interest in the Bobbys Pond Property which hosts the volcanogenic massive sulphide (VMS) Bobbys Pond zinc-copper-lead deposit. The deposit contains NI 43-101 compliant Indicated Resources of 1.1 million tonnes with an average grade of 4.61% zinc, 0.86% copper, 0.44% lead, 16.60 g/t silver, and 0.20 g/t gold. It contains additional Inferred Resources totaling 1.18 Mt with an average grade of 3.75% zinc, 0.95% copper, 0.27% lead, 10.95 g/t silver, and 0.06 g/t gold*.

Geology

Mineralization is stratabound and shear-hosted predominantly by various facies of Tulk’s Hill fragmental felsic volcanic rocks making up the Ordovician Victoria Lake Group. It is characterized by a zone of quartz-sericite-pyrite footwall alteration and variable biotite hanging wall alteration along the main structural zone. The resource is comprised of individual mineralized zones ranging in thickness from 2 to 15 meters, with an average thickness ranging from 5 to 8 meters for the more continuous zones. At least five mineralized lenses are recognized within the 100 meters of width across the strike of the Bobbys Pond deposit. Only two of these lenses however (Lens 2 and Lens 3) can be traced for a strike length of approximately 150 meters. Another lens (Lens 4) can be traced for approximately 75 meters along strike. Thick intervals of low grade copper stringer mineralization currently define the edges of much of the deposit and indicate that the mineralized system continues at depth.

History

From 1986 to 1996, the property was explored by diamond drilling by Inco Exploration and Technical Services, Inc. (Inco, a predecessor company to Vale Inco). Between 2004 and 2008, Mountain Lake Resources completed approximately 12,300 meters of drilling in 39 drill holes which resulted in the current resource estimation.

In 2013, Buchans Resources acquired the Bobbys Pond property mining lease, which comprises a total area of approximately 6.1 km2 (610 hectares), located within the Tulks mineral belt of central Newfoundland. The deposit lies 17 kilometers south of Buchans Resources’ Lundberg project at the town of Buchans and 8 kilometers from its Daniels Pond deposit. Buchans believes that there are significant opportunities and benefits to a coordinated exploration and development approach at Daniels and Bobbys Pond, and other nearby deposits.

Recent Work 

Drilling on the Bobbys deposit in 2018 returned encouraging results highlighted by the intersection of semi-massive to massive sulphide mineralization down plunge of the known deposit.  This drilling extended semi-massive to massive sulphide mineralization down plunge to a vertical depth of 475 m, where one hole averaged 17.02% combined base metals over 0.85 m.  This hole, BP-18-41B, intersected 0.85 m assaying 0.50% Cu, 0.02% Pb, 16.50% Zn, 28.4 g/t Ag and 0.306 g/t Au (See Buchans News Release December 21, 2018).  This mineralization remains open at depth below 475 m, and is correlated with other historic high-grade intersections nearby, including 1.75 m assaying 29.09% contained base metals (“CBM”) as 3.25% Cu, 2.51% Pb, 23.33% Zn, 88.1 g/t Ag and 0.153 g/t Au (hole MOA-08-34) and two closely spaced zones in hole MOA-08-35 that intersected 14,1% CBM over 1.0 m assaying 2.31% Cu, 2.70% Pb, 9.10% Zn, 53.8 g/t Ag and 0.049 g/t Au; and 20.34% CBM over 1.35 m assaying 3.52% Cu, 3.09% Pb, 13.73% Zn, 72.8 g/t Ag and 0.100 g/t Au.

Strategy for Development

A metallurgical test program and mine planning is underway to determine the viability of mining at Bobbys Pond with the view of transporting ore to a centrally located milling complex with respect to Buchans Resources’ other deposits located along the Tulks Belt.

*The resource estimate was prepared by Scott Wilson Roscoe Postle Associates on July 31, 2008 for Mountain Lake Resources, who subsequently sold the property to Buchans in 2013. The reported mineral resources are estimated in accordance with CIM guidelines for Classifications of Mineral Resources and Mineral Reserves. Mineral Resources are estimated at a cut-off grade of 1.1% CuEq, with Zn grade converted to Cu at 2.8:1 ratio, Pb grade converted to Cu at 4.35:1 ratio, an average copper price of US$2.50 per lb, an average zinc price of US$0.90 per lb, an average lead price of US$0.75 per lb, and a minimum horizontal width of 2.0 m of mineralization.