Buchans & Minco receive final assays from Lundberg drilling,
Buchans, Newfoundland
Trading Symbol: TSXV: BMC
Shares Outstanding: 166,283,160
WINDSOR, NS,
Jan. 9, 2013 /CNW/ - Buchans
Minerals Corporation (TSXV: BMC) ("Buchans Minerals" or the
"Company"), together with Minco plc (AIM Market: MIO)
("Minco") are pleased to announce remaining assays from their
recently completed drilling program on the Lundberg and Engine
House base metal deposits in Buchans, central Newfoundland, Canada.
The 3 month drilling program was completed in
October and consisted of 58 holes totaling 8,184 metres of
drilling. Results for the final seven 7 holes of the program
are now available and include additional favourable results
confirming thick mineralization extending to depth within the
resource's northwestern area while also confirming the resource
extends further east than previously interpreted, with two shallow
step-out holes intersecting the zone beneath overburden east of the
known resource. Results from the northwest area include
multiple thick intercepts that further confirm the resource in this
key area including 43 metres averaging 2.37% combined base
metals comprised of 0.15% copper, 0.69% lead, and 1.52% zinc in
hole 3477. Highlights from the east margin of the Lundberg
zone include an intercept of 37.7 metres averaging 1.01%
combined based metals comprised of 0.23% copper, 0.15% lead and
0.63% zinc beneath 11.3 metres of overburden in hole
3482. A second hole drilled in this area, 3483, also
intersected mineralization immediately below overburden coring
16.55 metres averaging 1.79% combined base metals comprised of
0.26% copper, 0.42% lead and 1.11% zinc. Results from
these two holes suggest the zone remains open beyond the eastern
limits of the previous resource estimate. Assay highlights
for the final 7 holes of the program are summarized below.
Lundberg
Hole |
Interval (m) |
Width
(m) |
|
Cu+Pb+Zn
(%) |
|
Cu
(%) |
|
Pb
(%) |
|
Zn
(%) |
Ag
(g/t) |
|
Au
(g/t) |
H-12-3477 |
136.0-179.0 |
43.00 |
|
2.37 |
|
0.15 |
|
0.69 |
|
1.52 |
4.0 |
|
0.06 |
and |
227.0-272.0 |
45.00 |
|
2.20 |
|
0.23 |
|
0.69 |
|
1.28 |
2.3 |
|
0.04 |
and |
290.0-315.0 |
25.00 |
|
1.26 |
|
0.16 |
|
0.38 |
|
0.72 |
2.5 |
|
0.08 |
H-12-3478 |
195.0-229.0 |
34.00 |
|
1.45 |
|
0.11 |
|
0.40 |
|
0.9 |
2.3 |
|
0.03 |
and |
241.0-330.0 |
89.00 |
|
1.03 |
|
0.19 |
|
0.25 |
|
0.59 |
1.8 |
|
0.04 |
H-12-3479 |
95.9-169.0 |
73.10 |
|
2.01 |
|
0.32 |
|
0.49 |
|
1.20 |
3.4 |
|
0.07 |
incl. |
99.0-129.0 |
30.00 |
|
2.65 |
|
0.58 |
|
0.59 |
|
1.48 |
5.2 |
|
0.08 |
and |
206.0-225.0 |
19.00 |
|
1.67 |
|
0.12 |
|
0.48 |
|
1.07 |
2.0 |
|
0.05 |
H-12-3480 |
66.6-103.0 |
37.00 |
|
1.19 |
|
0.17 |
|
0.23 |
|
0.78 |
4.6 |
|
0.04 |
H-12-3481 |
97.0-107.0 |
10.00 |
|
3.40 |
|
0.39 |
|
0.64 |
|
2.37 |
9.9 |
|
0.08 |
H-12-3482 |
11.3-49.0 |
37.70 |
|
1.01 |
|
0.23 |
|
0.15 |
|
0.63 |
1.2 |
|
0.02 |
incl. |
16.0-31.0 |
15.00 |
|
1.34 |
|
0.35 |
|
0.19 |
|
0.80 |
1.7 |
|
0.02 |
H-12-3483 |
14.45-31.0 |
16.55 |
|
1.79 |
|
0.26 |
|
0.42 |
|
1.11 |
2.1 |
|
0.03 |
incl. |
69.5-72.0 |
2.50 |
|
9.59 |
|
0.39 |
|
3.10 |
|
6.10 |
17.8 |
|
0.06 |
Note: All holes drilled vertically from
surface. Drill hole details including collar locations and complete
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 mineralization is
interpreted to consist of flat-lying to shallowly dipping
sheets.
The Companies have now retained Mercator
Geological Services of Dartmouth Nova
Scotia to undertake new resource estimate for the Lundberg
and Engine House deposits that will estimates resources within both
Indicated and Inferred categories. The Companies anticipate
the resource estimates will be complete within the next 4 to 5
weeks and allow Inferred Resources previously assessed by a
positive Preliminary Economic Assessment undertaken by Wardrop in
2011 to be reassessed as Indicated Resources within a NI-43-101
compliant Prefeasibility study.
"We are pleased with our drilling program's
results as they appear to confirm the concept of the Engine House
and Lundberg deposits as an open pit development project. We
are particularly encouraged as the program appears to have
successfully confirmed several key aspects of the project
including: delineation of a higher grade corridor of mineralization
running the length of the Lundberg Zone, plus the expansion of near
surface resources on the east margin of Lundberg, and the further
expansion of the Engine House deposit down dip to the south and
west. We look forward to receiving new resource estimates for
the project." commented Warren
MacLeod, President and CEO of Buchans Minerals.
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.
The PEA concluded that 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 the deposit 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 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 (also joint ventured to Minco
plc.) and its 50% owned gold and copper Long Range Property in
central Newfoundland.
Buchans Options Correction
The Company also announces a correction to the
number of options granted reported in the January 7, 2013 news release. A total of 837,000
options were granted to an aggregate of 4 directors, officers and
employees of the Company rather than 635,500 options announced on
January 7, 2013. The terms and
conditions of the option grant remain unchanged.
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, 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.