Buchans and Minco announce additional Lundberg & Engine House
drilling results, Buchans, Newfoundland
Trading Symbol: TSXV: BMC
Shares Outstanding: 166,283,160
WINDSOR, NS,
Oct. 17, 2012 /CNW/ - Buchans
Minerals Corporation (TSXV: BMC) ("Buchans Minerals" or the
"Company"), together with Minco plc (AIM Market: MIO)
("Minco") are pleased to announce additional results from their
ongoing drilling program on the Lundberg and Engine House base
metal deposits in Buchans, central
Newfoundland, Canada.
Drilling continues with approximately 7,800
metres of the proposed 8,000 metre program complete and 56 of 58
holes complete or in progress. Assay results have been
received for the first 32 holes with the current batch of drilling
results largely defining the southern limits of the Lundberg
deposit.
High-grade intersections are present in holes
located along the southern margin of the Lundberg deposit which
include an intercept of 4.0 metres grading 2.06% copper, 5.94%
lead, 11.62% zinc, 119.0 g/t silver and 0.72 g/t gold in hole
H-3453. Broad intersections of Lundberg stockwork
mineralization are also present as expected beneath the former
high-grade Lucky Strike massive sulphide mineralization horizon for
which the majority of the resource at Lundberg is expected to be
calculated.
Drilling at the Engine House zone continues to
return favourable results, including 18.0 metres averaging 1.10%
copper, 0.44% lead, 1.93% zinc, 6.1 g/t silver and 0.05 g/t gold in
hole H-3454. Current results from the Engine House zone
further suggest the zone remains open to the southwest and includes
an intercept of 13.0 metres averaging 0.58% copper, 0.31% lead,
0.61% zinc, 3.9 g/t silver and 0.07 g/t gold in hole H-3449 on the
deposit's southwestern margin.
The originally proposed program is expected to
be complete within the next few days; however, the Companies
anticipate adding additional holes to further define and extend
mineralization in certain areas, including at Engine House where
higher grade mineralization may remain open to the south.
Complete assay results and a map showing hole locations relative to
the known resource are available at
http://www.buchansminerals.com.
Lundberg (select
highlights) |
Hole |
Interval (m) |
Width
(m) |
Cu+Pb+Zn
(%) |
Cu
(%) |
Pb
(%) |
Zn
(%) |
Ag
(g/t) |
Au
(g/t) |
H-12-3453 |
27.2-31.2 |
4.00 |
19.61 |
2.06 |
5.94 |
11.62 |
119.0 |
0.719 |
H-12-3456 |
142.3-157.8 |
15.50 |
2.38 |
0.20 |
0.73 |
1.45 |
7.3 |
0.049 |
and |
202.0-245.0 |
43.00 |
1.86 |
0.19 |
0.66 |
1.01 |
2.6 |
0.039 |
|
Engine House (select highlights) |
Hole |
Interval (m) |
Width
(m) |
Cu+Pb+Zn
(%) |
Cu
(%) |
Pb
(%) |
Zn
(%) |
Ag
(g/t) |
Au
(g/t) |
H-12-3447 |
85.8-98.0 |
12.20 |
1.67 |
0.84 |
0.26 |
0.57 |
13.7 |
0.178 |
H-12-3448 |
101.1-101.5 |
0.40 |
18.77 |
1.37 |
4.60 |
12.80 |
46.7 |
0.255 |
H-12-3449 |
94.0-107.0 |
13.00 |
1.50 |
0.58 |
0.31 |
0.61 |
3.9 |
0.073 |
Including |
97.0-104.0 |
7.00 |
2.51 |
1.07 |
0.48 |
0.96 |
6.1 |
0.104 |
H-12-3451 |
103.75-104.75 |
1.00 |
8.32 |
1.92 |
2.50 |
3.90 |
23.9 |
0.064 |
H-12-3454 |
90.0-108.0 |
18.00 |
3.47 |
1.10 |
0.44 |
1.93 |
6.1 |
0.048 |
Note: Holes H-12-3450, H-12-3452,
H-12-3455 and H-12-3457 were drilled as step out holes and did not
encounter significant mineralization. All holes drilled
vertically from surface except holes 3452 and 3455, which were both
angled under the old Lucky Strike glory-hole. Drill intercepts
quoted are core lengths and true widths have not been estimated due
to the stockwork and disseminated nature of mineralization
intersected, although previous drilling suggests the mineralization
consists of a flat-lying "stratigraphically controlled blanket" so
vertical core length intercepts are expected to be close to true
widths.
The current drill program has been designed with
multiple objectives, which include: (1) the upgrade of a
substantial portion of the current inferred resources to the
indicated category; (2) seeking to expand a number of higher grade
areas within the conceptual open pit, specifically beneath the
adjacent "Engine House" deposit and also beneath the old "Lucky
Strike Glory Hole" and (3) seeking to expand the potential size of
the Lundberg deposits with step-out exploration holes.
The Lundberg and Engine House
Deposits
The Lundberg and Engine House deposits were
assessed by a positive Preliminary Economic Assessment ("PEA")
completed by Wardrop, a Tetra Tech Company ("Wardrop"), in 2011
that identified the deposit has the potential to become a
stand-alone 5,000 tonne per day mine. The PEA is available
for viewing on the Company's website and a summary of the PEA can
be read from the Company's news release August 11, 2011.
The Lundberg and Engine House deposits are
primarily stockwork-type mineralization associated with
volcanogenic massive sulphide ("VMS") deposits, surrounding and
extending from the former Buchans
- Lucky Strike orebody. This stockwork mineralization
typically hosts lower grades than those previously mined at
Buchans, and is being evaluated as
near surface bulk tonnage mineralization, that is potentially
amenable to open pit mine development. Current Inferred
Resources within the Lundberg-Engine House conceptual open pit, as
defined by Wardrop in the PEA, are estimated as 17.28 million
tonnes with average grades of 1.63% zinc, 0.69% lead, 0.40% copper,
and 5.96 g/t silver.
Minco Joint Venture Agreement
On April
30th, 2012, Buchans Minerals and Minco announced
an agreement granting Minco the right to earn a 51% interest in the
Company's base metal properties in central Newfoundland by spending $8 million to advance the Lundberg deposit to
final feasibility over four (4) years and further explore the
Company's extensive mineral properties in the region.
Minco is initially required to spend
$3.5 million over the next two years
to advance the project to the pre-feasibility stage. During
this period, Minco plans to undertake a range of development
activities that will include:- drilling, resource estimation,
geotechnical engineering, open-pit mine plan, metallurgy, plant
design, engineering, environmental studies and an economic
evaluation. Following the expenditure of $3.5 million, Minco will then have the option to
proceed to complete a final feasibility study by spending a further
$4.5 million over the following two
years.
Qualified Person
The drill program is being supervised by Buchans
Minerals Corporation. Logging, sampling and assaying procedures
were completed as per the Company's QA/QC protocols as described in
Buchans Minerals' press release dated September 13th, 2012.
Paul Moore, M.Sc., P.Geo., (NL),
Buchans Minerals' Vice President Exploration, is acting as
Qualified Person in compliance with National Instrument 43-101 with
respect to this release and has reviewed the contents for
accuracy.
About Minco plc
Minco plc, registered in the Republic of Ireland and listed on the AIM
Market of the London Stock Exchange (AIM: MIO) is involved in
exploration and development activities in Canada at its Buchans zinc-copper-lead-silver volcanogenic
massive sulphide ("VMS") properties under joint venture with
Buchans Minerals Corporation, and indirectly in exploring and
developing silver-zinc properties in Central Mexico through its 29% shareholding in
Xtierra Inc., a company listed on the TSX Venture Exchange.
Minco holds 30 million shares (approximately
29%) in Xtierra Inc. listed on the TSX Venture Exchange (TSX.V:
XAG). Minco also holds 15 million shares (approximately 10%)
in Buchans Minerals listed on the TSX Venture Exchange (TSX.V:
BMC).
Minco currently holds approximately US$17 million in cash and is also evaluating a
number of other investment opportunities in the minerals industry
in North America and Europe.
For further information of Minco refer to
Minco's website at www.minco.ie.
About Buchans Minerals
Buchans Minerals is an Atlantic Canada based resource company that
has three main assets that include its 100% owned base metal
properties near Buchans in
Central Newfoundland (Joint
ventured to Minco plc.), its 100% owned manganese property located
near Woodstock in New Brunswick and its 50% owned gold &
copper Long Range Property in central Newfoundland.
Forward Looking Statements
Information set forth in this news release may
involve forward-looking statements under applicable securities
laws. Forward-looking statements are statements that relate to
future, not past, events. In this context, forward-looking
statements often address expected future business and financial
performance, and often contain words such as "anticipate",
"believe", "plan", "estimate", "expect", and "intend", statements
that an action or event "may", "might", "could", "should", or
"will" be taken or occur, or other similar expressions. All
statements, other than statements of historical fact, included
herein including, without limitation; statements about the
potential of the Lundberg project and the Woodstock project, are forward-looking
statements. By their nature, forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
cause our actual results, performance or achievements, or other
future events, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others, the
following risks: the need for additional financing; operational
risks associated with mineral exploration; fluctuations in
commodity prices; title matters; environmental liability claims and
insurance; reliance on key personnel; the potential for conflicts
of interest among certain officers, directors or promoters with
certain other projects; the absence of dividends; competition;
dilution; the volatility of our common share price and volume and
the additional risks identified the management discussion and
analysis section of our interim and most recent annual financial
statement or other reports and filings with the TSXV and applicable
Canadian securities regulations. Forward-looking statements are
made based on management's beliefs, estimates and opinions on the
date that statements are made and Buchans Minerals undertakes no
obligation to update forward-looking statements if these beliefs,
estimates and opinions or other circumstances should change, except
as required by applicable securities laws. Investors are cautioned
against attributing undue certainty to forward-looking
statements.
Neither the Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Exchange)
accepts responsibility for the adequacy or accuracy of this
release, and no securities regulatory authority has either approved
or disapproved of the contents of this release.
SOURCE BUCHANS MINERALS
CORP.