Daniels Pond Deposit

The Daniels Pond volcanogenic massive sulphide deposit is located within the Corporation’s 100% owned Tulks North property covering 10.25 km(1,025 hectares) within the Victoria Lake mining camp in central Newfoundland. The Daniels Pond deposit hosts a NI 43-101 compliant Indicated Resource at a 1.5% Zn cut-off of 1.16 million tonnes grading 4.44% zinc, 2.12% lead, 0.31% copper, 87.79 g/t silver and 0.60 g/t gold, as well as an additional Inferred resource totaling 0.45 million tonnes grading 3.88% Zn, 1.74% Pb, 0.27% Cu, 81.63 g/t Ag and 0.52 g/t Au (Royal Roads news release dated March 13, 2008). The bulk of these resources occur within 150 metres of surface in two lobes of mineralization.

The deposit is located within the highly prospective Tulks North property, being located within the northern half of the Tulks Volcanic belt, the same belt of rocks that hosts NorZinc’s Boomerang, Hurricane and Tulks East base metal deposits, as well as Buchan’s Tulks Hill deposit. The Corporation’s Daniels Pond deposit is also located 8 km southwest of Buchans Resources’ Bobbys Pond base metal deposit and less than 30 km west of Teck Resources’ recently closed Duck Pond mine and mill.

The Daniels Pond deposit is being studied as part of a regional metallurgical test program with a view to contributing as potential source of base metal ore to feed a centrally-located mill.

Daniels Pond Resource

Daniels Pond Mineral Resource Estimate by Zn% Cut-off Effective March 11, 2008

Category

Cut-off (Zn %)

Tonnes

Combined Zn%+Pb%+Cu%

Zn %

Pb %

Cu %

Ag g/t

Au g/t

Indicated

1.5

1,162,000

6.88

4.44

2.12

0.31

87.79

0.60

 

2.0

929,000

7.98

5.13

2.50

0.34

101.40

0.63

 

2.5

787,000

8.79

5.65

2.77

0.37

111.03

0.68

Inferred

1.5

445,000

5.89

3.88

1.74

0.27

81.63

0.52

 

2.0

332,000

7.04

4.61

2.13

0.30

85.86

0.53

 

2.5

236,000

8.70

5.59

2.79

0.32

112.31

0.55

 

Recent Work

Drilling on the Daniels deposit in 2018 returned encouraging results highlighted by the intersection of semi-massive to massive sulphide mineralization down plunge of the known deposit, extending mineralization below the known resource to vertical depths of 472 m. Highlights from the this drilling include hole DN-18-131 that intersected 8.80 m of pyritic massive sulphides averaging 1.96% CBM as 0.23% Cu, 0.18% Pb, 1.55% Zn, 12.09 g/t Ag and 0.658 g/t Au (See Buchans News Release December 21, 2018). This lobe of massive sulphides remains open at depth, where potential remains for discovery of additional accumulations of higher-grade massive sulphides.

 Daniels Pond Technical Report

Technical Report on the Daniels Pond Deposit and Property Holdings (pdf)