Buchans & Minco drill 134.8 metres averaging 4.96% combined
base metals, including 56.8 metres averaging 8.33% combined base
metals at Lundberg, Buchans, Newfoundland
Trading Symbol: TSXV: BMC
Shares Outstanding: 166,283,160
WINDSOR, NS, Dec. 7, 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 three month drilling program of 58 holes
totaling 8,184 metres of drilling was completed in October.
Assay results for 51 holes are now available, representing 79% of
the program's assays. Results described in this release are from
five holes drilled into the deposit's northwest portion and further
confirm a higher grade, northwest trending corridor trending
through the heart of the deposit. New assays from this
northwest area include hole H-3475 that intersected 134.8 metres
averaging 4.96% combined base metals, including 56.8 metres
averaging 8.33% combined base metals. Hole H-3473, also
drilled on this corridor, intersected 155.7 metres averaging
1.59% combined base metals, including 55.0 metres averaging 1.99%
combined base metals. Assay highlights are summarized
below.
Lundberg
Hole |
Interval (m) |
Width
(m) |
Cu+Pb+Zn
(%) |
Cu
(%) |
Pb
(%) |
Zn
(%) |
Ag
(g/t) |
Au
(g/t) |
H-12-3472 |
69.5-75.0 |
5.50 |
4.58 |
0.20 |
1.47 |
2.92 |
8.7 |
0.04 |
|
incl. |
69.5-72.0 |
2.50 |
9.59 |
0.39 |
3.10 |
6.10 |
17.8 |
0.06 |
H-12-3473 |
66.3-222.0 |
155.70 |
1.59 |
0.26 |
0.43 |
0.9 |
3.0 |
0.05 |
|
incl |
66.3-122.0 |
55.70 |
1.72 |
0.29 |
0.48 |
0.95 |
3.2 |
0.04 |
|
incl |
130.0-155.0 |
25.00 |
1.27 |
0.09 |
0.40 |
0.8 |
1.5 |
0.06 |
|
incl |
167.0-222.0 |
55.00 |
1.99 |
0.39 |
0.51 |
1.1 |
4.0 |
0.07 |
H-12-3474 |
86.0-92.0 |
6.00 |
7.83 |
0.37 |
2.66 |
4.80 |
9.9 |
0.05 |
|
and |
122.0-133.0 |
11.00 |
1.44 |
0.06 |
0.46 |
0.92 |
1.8 |
0.04 |
|
and |
150.0-186.0 |
36.00 |
1.07 |
0.24 |
0.26 |
0.57 |
1.7 |
0.05 |
*H-12-3475 |
59.5-194.3 |
134.80 |
4.96 |
0.50 |
1.34 |
3.12 |
7.6 |
0.06 |
|
incl. |
59.5-116.3 |
56.80 |
8.33 |
0.83 |
2.23 |
5.28 |
12.2 |
0.09 |
|
and |
215.3-225.3 |
10.00 |
1.37 |
0.11 |
0.35 |
0.91 |
2.3 |
0.03 |
Note: All holes drilled vertically from
surface. Drill hole details including assays are available at
http://www.buchansminerals.com. Intercepts quoted are core lengths
and true widths have not been estimated due to the stockwork and
disseminated nature of mineralization intersected. Vertical core
length intercepts are considered close to true widths as the
mineralized zones are interpreted to consist of flat-lying to
shallowly dipping sheets. *Assay composite for H-3475
includes dilution from 1.0 m of lost core between 62.5 to 63.5
m.
New results from the northwestern portion of the
Lundberg zone are considered particularly encouraging as they
confirm high grades over large widths from that portion of the
Inferred resource evaluated by a positive Preliminary Economic
Assessment in 2011 by Wardrop.
"We are very pleased to see impressive grades
and widths occurring in the northwest portion of the Lundberg zone,
particularly in hole H-3475, as these results represent perhaps the
best intercepts observed to date from the Lundberg resource.
We also hope these results enhance our evaluation of the deposit as
an open pit mine development." commented Warren MacLeod, President and CEO of Buchans
Minerals on the assay results received to date.
The program's remaining assays are anticipated
to be available within the next 2 to 3 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.
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.
Dependent on review and assessment of 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 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 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.