Buchans and Minco announce additional positive drilling results
from Lundberg & Engine House, Buchans, Newfoundland
Trading Symbol: TSXV: BMC |
|
Shares Outstanding: 166,283,160 |
WINDSOR, NS,
Nov. 27, 2012 /CNW/ - Buchans
Minerals Corporation (TSXV: BMC) ("Buchans Minerals" or the
"Company"), together with Minco plc (AIM Market: MIO)
("Minco") are pleased to announce further encouraging results from
their recently completed drilling program on the Lundberg and
Engine House base metal deposits in Buchans, central Newfoundland, Canada.
A total of 58 holes comprising 8,184 metres of
drilling was completed during the three month drilling program
which ended in October. Assay results for the first 46 holes
are now available, which represent 64% of the samples collected for
assay during the program. Interpretation of the latest assay
results indicate that the Lundberg deposit extends to the north and
east and will likely allow expansion of the resource in these
areas. Highlights from the northeastern area include:
- 50.15 m averaging 2.42% combined base metals (i.e.,
Cu+Pb+Zn) in hole H-12-3465
-
- 0.36% Cu, 0.52% Pb, 1.54% Zn and 3.5 g/t Ag
- 30.0 m averaging 1.43% combined base metals in hole
H-12-3458
-
- 0.27% Cu, 0.29% Pb, 0.87% Zn and 1.38 g/t Ag
Additionally, holes drilled into the eastern
portion of the Lundberg deposit returned impressive results
confirming excellent grades including:
- 102.8 m averaging 3.41% combined base metals in hole
H-12-3460
-
- 0.68% Cu, 0.91% Pb, 1.82% Zn, and 4.8 g/t Ag
Hole H-12-3460 also intersected remnants of the
former Lucky Strike ore body near surface including 5.20 m
averaging 15.97% combined base metals (4.19% Cu, 4.23% Pb,
7.55% Zn, 60.6 g/t Ag and 0.41 g/t Au).
New results from the north-central portion of
the Lundberg zone are also considered encouraging as confirming
grades and widths in that part of the deposit.
"We are delighted with our drilling results
to date and are encouraged that new results suggest optimism for
expansion of near-surface resources. These latest assays
further confirm the Lundberg deposit hosts a large central corridor
of thicker, higher grade material, and we look forward to remaining
assays from the northwest portion of this corridor in future
results. We are also encouraged that high-grade massive sulphide
mineralization remain close to surface and may have a positive
impact on our resource." commented Warren MacLeod, President and CEO of Buchans
Minerals on the assay results received to date.
The bulk of the program's remaining assays are
anticipated to be available within the next 3 to 4 weeks.
Complete assay results and a map showing hole locations relative to
the known resource are available on the Company's website at
http://www.buchansminerals.com.
Lundberg
Hole |
Interval (m) |
Width
(m) |
Cu+Pb+Zn
(%) |
Cu (%) |
Pb (%) |
Zn (%) |
Ag (g/t) |
Au (g/t) |
H-12-3458 |
49.0-79.0 |
30.00 |
1.43 |
0.27 |
0.29 |
0.87 |
1.38 |
0.03 |
incl. |
52.0-57.0 |
5.00 |
3.77 |
1.24 |
0.71 |
1.82 |
3.62 |
0.04 |
H-12-3459 |
2.6-111.0 |
108.40 |
1.50 |
0.25 |
0.37 |
0.88 |
1.5 |
0.06 |
incl. |
2.6-22.0 |
19.40 |
2.09 |
0.49 |
0.50 |
1.10 |
3.14 |
0.05 |
H-12-3460 |
17.5-120.3 |
102.80 |
3.41 |
0.68 |
0.91 |
1.82 |
4.8 |
0.05 |
H-12-3461 |
46.0-62.0 |
16.00 |
1.65 |
0.20 |
0.42 |
1.03 |
1.4 |
0.04 |
H-12-3463 |
19.0-36.0 |
17.00 |
1.05 |
0.05 |
0.25 |
0.74 |
1.38 |
0.02 |
H-12-3464 |
53.6-57.6 |
4.00 |
2.70 |
0.13 |
0.86 |
1.72 |
32.88 |
0.33 |
and |
70.6-87.6 |
17.00 |
2.52 |
0.20 |
0.74 |
1.58 |
8.71 |
0.05 |
and |
115.0-151.0 |
36.00 |
1.09 |
0.09 |
0.34 |
0.66 |
2.70 |
0.03 |
H-12-3465 |
9.85-60.0 |
50.15 |
2.42 |
0.36 |
0.52 |
1.54 |
3.50 |
0.03 |
H-12-3466 |
77.3-97.0 |
19.70 |
3.11 |
0.37 |
1.15 |
1.59 |
29.63 |
0.10 |
and |
121.0-159.0 |
38.00 |
1.41 |
0.14 |
0.43 |
0.84 |
1.78 |
0.02 |
H-12-3467 |
90.0-147.0 |
57.00 |
1.04 |
0.06 |
0.23 |
0.75 |
1.08 |
0.04 |
H-12-3468 |
76.4-81.4 |
5.00 |
2.99 |
0.10 |
1.17 |
1.73 |
8.40 |
0.06 |
and |
92.6-103.15 |
10.55 |
2.62 |
0.46 |
0.75 |
1.42 |
6.09 |
0.11 |
H-12-3469 |
57.0-87.0 |
30.00 |
1.22 |
0.52 |
0.28 |
0.43 |
3.45 |
0.07 |
H-12-3470 |
82.2-123.0 |
40.80 |
1.08 |
0.24 |
0.29 |
0.55 |
1.61 |
0.05 |
H-12-3471 |
80.0-103.0 |
23.00 |
1.24 |
0.16 |
0.31 |
0.77 |
1.87 |
0.05 |
Lucky Strike
Hole |
Interval (m) |
Width
(m) |
Cu+Pb+Zn
(%) |
Cu (%) |
Pb (%) |
Zn (%) |
Ag (g/t) |
Au (g/t) |
H-12-3460 |
*9.15-14.35 |
*5.20 |
*15.97 |
*4.19 |
*4.23 |
*7.55 |
*60.6 |
*0.41 |
incl. |
9.15-12.3 |
3.15 |
21.35 |
6.47 |
5.46 |
9.42 |
85.5 |
0.63 |
and |
11.85-12.3 |
0.45 |
22.20 |
6.90 |
5.40 |
9.90 |
85.8 |
0.91 |
H-12-3462** |
10.0-13.0 |
3.00 |
2.72 |
0.48 |
0.73 |
1.51 |
5.37 |
0.02 |
Note: All holes drilled vertically from
surface except holes 3464, 3466, 3468 and 3471 (angled under the
Lucky Strike glory hole). Drill hole details including assays are
available at http://www.buchansminerals.com.. Drill intercepts
quoted are core lengths and true widths have not been estimated due
to the stockwork and disseminated nature of mineralization
intersected. The mineralized zones are interpreted to consist of
flat-lying to shallowly dipping sheets so vertical core length
intercepts are considered close to true widths. *Assay
composite for H-3460 from 9.15 to 14.35 m includes dilution from
1.5 m of lost core from 12.3 to 13.8 m. **Hole 3462 was
drilled to 32 m to test for additional high-grade mineralization
adjacent to hole 3460.
The Companies look forward to receiving
remaining assays and generating new resource estimates that will
allow Inferred Resources assessed by the Wardrop 2011 Preliminary
Economic Assessment to be assessed as Indicated Resources.
Depending on the review and assessment of the assay results, the
Companies may consider additional drilling in areas where potential
exists for further resource expansion, particularly in the area
south of Lundberg, down dip and west of the Engine House
deposit.
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 found in the Company's news
release of August 11, 2011.
The Lundberg and Engine House deposits are primarily stockwork-type
mineralization associated with volcanogenic massive sulphide
("VMS") deposits of the Buchans Mining Camp. Stockwork
mineralization typically hosts lower grades than ores 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 design, metallurgy, plant design, and other engineering
and environmental studies that may be required as well as 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$16
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.