Buchans Resources Limited Buchans Base Metals Project, Newfoundland - - PowerPoint PPT Presentation

Buchans Base Metals Project, Newfoundland - Update

…heart of one of the world’s highest-grade VMS mining camps…

BuchansResources Limited

January 2 2020

Forward-Looking Statements

Buchans Resources Limited (“Buchans” or the “Company”) has prepared this presentation for information purposes only. The information contained herein was prepared by management on a best efforts basis and is believed to be accurate. This presentation contains or refers to "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements in this release, other than statements of historical fact, which address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking information. Wherever possible, words such as "plans", "expects" or "does not expect", "budget", "scheduled", "estimates", "forecasts", "anticipates" or "does not anticipate", "believes", "intends" and similar expressions or statements that certain actions, events or results "may", "could", " "would", "might" or "will" be taken, occur or be achieved, have been used to identify forward-looking information. In particular, all statements in this presentation that address estimated resource quantities, grades and contained metals, possible future mining, and exploration and development activities are forward looking statements. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results. Shareholders and prospective investors are cautioned not to place undue reliance on forward- looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law. This presentation may contain certain information derived from official government publications, industry sources and third

• parties. While we believe inclusion of such information is reasonable, such information has not been independently verified by

us or our advisers, and no representation is given as to its accuracy or completeness.

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Toronto

The Company

Canadian Junior Company focused in world- renowned base metal mining districts … demonstrated potential for exceptional mines

Orogenic Au

Buchans

• Historic Mining Camp

(Zn-Pb-Cu-Ag-Au) Xtierra Ag-Zn-Pb (own 22% - TSXV:XAG)

• base metals & Ag Skarn

Voisey’s Bay Style Ni-Cu-Co

Dec 31, 2019 - Reorganisation Completed 3 Separate Focused Companies

…”each of the Companies plans to take steps to apply for separate stock exchange listings”…

Buchans Resources

(TSXV or CSE)

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Historical Production from Canada’s First Mineral District in Central New foundland

Duck Pond Mine Operator: Teck Resources 2007 to 2015 Production: 5.4 million tonnes averaging 5.8% Zn, 0.9% Pb, 3.3% Cu, 0.86 g/ t Au and59 g/ t Ag Buchans Mine Operator: ASARCO 1927 to 1984 Production: 16.2 million tonnes averaging 14.5% Zn, 7.6% Pb, 1.3% Cu, 1.37 g/ t Au, 126 g/ t Ag from five separate deposits (Lucky Strike ,Old Buchans, Oriental, Rothermere, and MacLeans)

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among world’s highest grade volcanogenic massive sulphide (VMS) camps

• Asarco: 16.2 Mt >23% CBM (Zn+Pb+Cu) - 1.3% Cu, 7.6% Pb, 14.5% Zn, 1.37 g/t Au & 126 g/t Ag

(historic production; 1928-84)

• excellent infrastructure - mining friendly jurisdiction
• explore for new high-grade mines
• lower grade resources left behind by past operators
• district hosts multiple VMS deposits - potentially contribute production

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Map Area

District Opportunity

Cambro-Ord. Volc. Millertown

20 km

Buchans

Buchans Resources NorZinc Properties NI 43-101 Resource Historic mine

Lundberg – 100% BRL

Indicated – 16.79 Mt @ 1.53% Zn, 0.64% Pb, 0.42% Cu, 5.69 g/t Ag, 0.07 g/t Au Inferred – 0.38 Mt @ 2.03% Zn, 1.01% Pb, 0.36% Cu, 22.35 g/t Ag & 0.31 g/t Au ($20US NSR cut-off)

Bobbys Pond (1.1% CuEq) - 100% BRL

Indicated - 1.1 Mt @ 4.6% Zn, 0.4% Pb, 0.9% Cu, 16.6 g/t Ag, 0.2 g/t Au Inferred- 1.2 Mt @ 3.8% Zn, 0.3% Pb, 1.0% Cu, 11.0 g/t Ag & 0.06 g/t Au

Lemarchant 100% NZC (4% ZnEq. cut-off)

Indicated - 2.42 Mt @ 6.2% Zn, 1.6% Pb, 0.7% Cu, 64.0 g/t Ag, 1.22 g/t Au Inferred – 0.56 Mt @ 4.7% Zn, 1.1% Pb, 0.5% Cu, 44.7 g/t Ag, 1.1 g/t Au

Daniels – 100% BRL

Indicated-0.93 Mt @ 5.1% Zn, 2.5% Pb, 0.3% Cu, 101.4 g/t Ag, 0.6 g/t Au Inferred- 0.33 Mt @ 4.6% Zn, 2.1% Pb, 0.3% Cu, 85.9 g/t Ag, 0.53 g/t Au (2% Zn cut-off)

Long Lake 100% NZC (using a 7.0% zinc equiv. cut-off)

Indicated – 0.41 Mt @ 7.8% Zn, 1.6% Pb, 1.0% Cu, 49 g/t Ag, 0.57 g/t Au Inferred – 0.08 Mt @ 5.8% Zn, 1.2% Pb, 0.7% Cu, 34 g/t Ag, 0.48 g/t Au

Duck Pond Mine (past prod.)

5.0Mt @ 4.4%Zn, 2.7%Cu, 53g/t Ag, 0.6 g/t Au (Teck, 2007-15)

Buchans (past prod.) 16.2 Mt

14.5% Zn, 7.6% Pb, 1.3% Cu, 1.37 g/t Au & 126 g/t Ag (Asarco, 1928-1984) Tulks Hill – 100% BRL

Indicated-0.43 Mt @ 4.0% Zn, 1.6% Pb, 0.9% Cu, 35.1 g/t Ag, 1.2 g/t Au (1.1% CuEq)

Boomerang Deposits 100% NZC (1% Zn cut-off)

Indicated - 1.36 Mt @ 7.1% Zn, 3.0% Pb, 0.5% Cu, 110.4 g/t Ag, 1.7 g/t Au Inferred - 0.28 Mt @ 6.7% Zn, 2.9% Pb, 0.4% Cu, 96.5 g/t Ag, 1.3 g/t Au Domino (Inferred) – 0.41 Mt @ 6.3% Zn, 2.8% Pb, 0.4% Cu, 94 g/t Ag, 0.6 g/t Au Hurricane (Inferred) – 0.06 Mt @ 13.4% Zn, 7.0% Pb, 1.2% Cu, 159 g/t Ag, 0.9 g/t Au

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200 400 600 800 1,000 1,200 1,400 1,600 1,800

Zn (lbs) Pb (lbs) Cu (lbs) 583 245 158 1,179 357 136 1,762 602 294 Millions

• District* hosts >1.75 billion lbs

Zn, >600 million lbs Pb, & ~300 million lbs Cu

• Lundberg* hosts >580 million lbs

Zn, 245 million lbs Pb & >158 million lbs Cu

• 2017 bench-scale metallurgical

study demonstrated ore from 5

• f the district’s main deposits

could be processed using a sequential flow sheet in a central milling facility

* combined Indicated & Inferred resources Deposits: Lundberg, Bobbys, Daniels, Tulks Hill, Boomerang, Lemarchant, Long Lake

Buchans District

(undeveloped resources)

Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be considered for estimation of mineral reserves, and there is no certainty that inferred mineral resources will be realized.

District Total VLSG (all NI 43-101) Lundberg (largest & most advanced)

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Red Indian Lake

deposits (incl. past producers-projected to surface) sulphide prospects favourable alteration 5 km

Lundberg (near surface - stockwork)

below Lucky Strike (massive sulphides)

Outline of Buchans Camp rocks after GSC 2016

Buchans camp rocks

Asarco mined 16.2 Mt 14.5% Zn, 7.6% Pb, 1.3% Cu, 1.37 g/t Au & 126 g/t Ag (1928-1984)

BUCHANS Lundberg Deposit

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Schematic block diagram of the MacLean channel, Lucky Strike area, illustrating hydrothermal vents along synvolcanic faults, diatreme activity associated with subvolcanic plutonic body, ore bearing slumps and debris flows (modified after Kirkham and Thurlow, 1987; and Thurlow, 2001).

stockwork ore

sulphide-rich vein networks (2-6% Zn-Pb-Cu) (not mined)

transported ore

debris flow deposits (16-22% Zn-Pb-Cu) (52% of ore mined)

VMS DEPOSITS (Buchans model)

in situ ore

massive sulphides (25-28% Zn-Pb-Cu) (48% of ore mined)

Lundberg Lucky Strike

In a VMS setting ….

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Lundberg Project

VMS Stockw ork Deposit Surrounding Lucky Strike Deposit, Buchans Mine

Lucky Strike (massive sulphides): Production 1928-1958 and 1972-1979 High grade deposit of 5.6 M tonnes averaging 18.4% Zn, 8.6% Pb, 1.6% Cu, 112 g/t Ag & 1.7 g/t Au

Mineralization

LUNDBERG Bulk Tonnage Resource BuchansResources

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Lundberg H-3356 – 37 m

LUNDBERG

STOCKWORK DEPOSIT

2008 – 1st resource estimate (100% Inferred)

• 45 BRL holes (6,860 m) + 128 historic holes (~10,000 m)

2013 – 2nd resource estimate (84.5 % indicated)

• 51 BRL holes (7,235 m)

2018 - drilled 17 holes (2,205 m) upgrade resource

• 113 BRL + 128 historic holes - grand total: 241 holes / ~26,300 m

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Mineralization

LUNDBERG RESOURCE

Quoted resources are pit-optimized. Resources that are not mineral reserves do not have demonstrated economic viability. Resource tonnages have been rounded to the nearest 10,000. Metal price assumptions: US $1.20/lb Zn, $1.00/lb Pb, $3.00/lb Cu, $1,250/oz Au, and $17/oz Ag. Additional disclosure and details available in Buchans Resources Limited news release dated March 1, 2019.

• pen pit – bulk tonnage

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In-Pit Lundberg Deposit Mineral Resource Estimate (Effective February 28, 2019)

NSR Cut-off (USD/t) Category Tonnes Zn % Pb % Cu % Ag g/t Au g/t Zn Eq. % NSR (USD/t) Strip Ratio 20 Indicated 16,790,000 1.53 0.64 0.42 5.69 0.07 3.38 54.98 2.9 Inferred 380,000 2.03 1.01 0.36 22.35 0.31 4.46 72.95

Indicated Category hosts >1.25 billion pounds of ZnEq contained metal as 566 Mlbs Zn, 237 Mlbs Pb, 156 Mlbs Cu, 3 MOz Ag & <38,000 Oz Au

Inferred Indicated mineral deposit not within optimized pit shell (not included in 2019 pit-optimized MRE)

Resource Category 2019 Lundberg MRE (plan view)

See Buchans Resources Limited press release dated March 1, 2019 for further explanation.

200 m

N

Optimized Pit Shell

(surface limits)

Lundberg deposit

(limits projected to surface)

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Lundberg 2019 Mineral Resource Estimate

(optimized pit-constrained)

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Kidd Creek Brunswick No.12 Flin Flon Horne Neves Corvo Cu (Portugal) LaRonde Bawdwin (Burma) 777/ Callinan Cayeli (Turkey) Roseberry (Australia)

Buchans

Hellyer (Australia) 100 200 300 400 500 600 700 800 900 1,000 20 40 60 80 100 120 140 160

High Value VMS Deposits

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Cu = $2.78/lb Zn = $1.18/lb Pb = $0.92/lb Ag = $15.57/oz Au = $1312/oz

Feb 15, 2019 (Kitco)

Tonnes (million) Gross Metal Value $US/tonne

* unverified data from multiple sources including historic production & pre-production resource estimates

Metal Prices: $US

1 km N

Lucky Strike

• thers
• thers

BRL BRL BRL BRL Oriental

Lundberg

(low-grade stockwork near-surface )

Sandfill Clementine Oriental East West Orebodies Lucky Strike North Middle Branch Old Buchans North

Orebodies (historic/ mined out) (mined 1928-1984 - 16.2 M tonnes 14.5% Zn, 7.6% Pb, 1.3% Cu, 1.37 g/t Au & 126 g/t Ag Stringer Mineralization (projected to surface) Historic Prospect (undeveloped, projected to surface) Lundberg & Engine House Zone (resource projected to surface)

Target Areas H-18-3513 - 7.0 m of 7.4% CBM

0.69% Cu, 1.58% Pb, 5.15% Zn, 33.5 g/t Ag & 0.21 g/t Au

• incl. 1.0 m 23.6% CBM

2.96% Cu, 5.13% Pb, 15.5% Zn, 96.4 g/t Ag & 0.27 g/t Au

and 3.10 m 6.4% CBM

0.22% Cu, 1.99% Pb, 4.19% Zn, 52.04 g/t Ag & 0.25 g/t Au

• incl. 1.0 m 17.5% CBM

0.56% Cu, 5.50% Pb 11.40 % Zn, 152.8 g/t Ag & 0.70 g/t Au

H-18-3524 - 1.8 m of 9.48% CBM

0.76% Cu, 3.15% Pb, 5.57% Zn, 90.5 g/t Ag & 0.37 g/t Au

• incl. 1.0 m of 14.83% CBM

1.26% Cu, 4.87% Pb, 8.70% Zn, 133.2 g/t Ag & 0.47 g/t Au

Buchans – Exploration Drilling BuchansResources

Relogged (2014-17)* >123,000 m of core (652 holes)

16

1 km

N

• thers
• thers

BRL BRL BRL BRL

Oriental In Situ Orebody – mined out Transported Orebody – mined out Stringer Mineralization (projected to surface; ASARCO) Prospect (undeveloped, projected to surface) Lundberg Deposit - 2019 Resource (projected to surface)

Clementine Sandfill West Orebodies Lucky Strike North Middle Branch Middle Branch (hist. intercept) 1.8 m - 0.4% Cu, 3.1% Pb, 4.8% Zn, 48 g/t Ag & 0.7 g/t Au

Lundberg Deposit

Old Buchans North

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Old Buchans North - hist. intercepts up to 2.74 m 2.6% Cu, 9.0% Pb, 23.7% Zn, 147.4 g/t Ag, & 3.4 g/t Au

• thers
• thers

Lundberg Optimized Pit (2019 Resource

Sandfill

Exploration Target Area (2019 Resource

Advanced Target

Lucky Strike

Buchans

Exploration

Relogged (2014-19)* >128,000 m of core (670 holes)

Clementine (historic, non-43-101 compliant) 360,000 tonnes 0.3% Cu, 2.6% Pb, 4.9% Zn & 41.0 g/t Ag Sandfill (historic, non-43-101 compliant) 68,000 tonnes – 1.5% Cu, 4.7% Pb, 10.0% Zn, 85.7 g/t Ag & 0.34 g/t Au

Regional Target

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Y Y Y

• Y
• Y

Y Y

• Y
• Y

Y

• Y
• Y
• Footwall disseminated mineralization

Footwall stockwork mineralization

? ? ? ? ? ? ? ?

Mineralization at Buchans Horizon Buchans Horizon absent (cut off) Too shallow – did not reach Buchans Horiz. Buchans Hor. no sig. mineralization

H-18-3513 - Sandfill

7.0 m - 7.4%CBM - 0.69% Cu, 1.58% Pb, 5.15% Zn, 33.5 g/t Ag, & 0.21 g/t Au

• incl. 1.0 m - 23.6%CBM - 2.96% Cu, 5.13% Pb, 15.5% Zn, 96 g/t Ag & 0.27 g/t Au

3.1 m - 6.4%CBM - 0.22% Cu, 1.99% Pb, 4.19% Zn, 52.04 g/t Ag & 0.25 g/t Au

• incl. 1.0 m - 17.5%CBM - 0.56% Cu, 5.50% Pb, 11.40 % Zn, 153 g/t Ag & 0.70 g/t Au

Sandy Lake (prom. qtz rhyolite/ arkose/basalt) Diabase Buchans River (rhyolite/ m.sulphs./ felsic tuffs

H-18-3522 - 0.30 m - 0.23% CBM

0.07% Pb, 0.16% Zn, 162.8 g/t Ag & 0.054 g/t Au

Historic drill hole/ BMC drill hole

250 m 1.8 m – 8.3% CBM @ 553 m 0.4% Cu, 3.1% Pb, 4.8% Zn, 48 g/t Ag & 0.7 g/t Au

Sandfill-Middle Branch Trend

Woodman’s Brook (structural cover) Woodman’s Brook (structural cover)

~10 Mt @ 25% CBM

0.24 m mass. pyrite-barite 0.1% CBM + 189 g/t Ag @ 438 m

B

3.1 m - 2.4% CBM 0.1% Cu, 0.7% Pb, 1.6% Zn, 7 g/t Ag 1.52 m - 4.9% CBM 0.3% Cu, 2.0% Pb, 2.6% Zn, 93 g/t Ag, 1.03 g/t Au 1.22 m - 17.7% CBM 0.2% Cu, 3.9% Pb, 13.7% Zn, 62 g/t Ag, 1.20 g/t Au 3.35 m - 21.7% CBM 2.6% Cu, 6.5% Pb, 12.6% Zn, 87 g/t Ag, 0.34 g/t Au 3.66 m - 11.2% CBM 0.5% Cu, 3.1% Pb, 7.7% Zn 0.46 m - 31.3% CBM 1.4% Cu, 8.6% Pb, 21.3% Zn, 219 g/t Ag, 2.74 g/t Au 0.24 m - 13.4% CBM (one sample) 1.6% Cu, 1.8% Pb, 10.0% Zn, 26 g/t Ag, 0.4 g/t Au

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Bobbys Pond and Daniels Pond Deposits

Daniels Pond Deposit

• High-grade VMS base metal deposit exposed at surface
• Located within the highly prospective Tulks North Property, in the same mineral belt

as the Boomerang deposit

• 83 drill holes totaling 15,411 m were completed in 2007 and 2008

Resource Estim ate for Bobbys Pond 1 Bobbys Pond Deposit

• Deposit has vertical orientation, favourable metallurgical characteristics and high grade

mineralization which comes to surface

• Thick intervals of low grade copper stringer mineralization indicate that the mineralized

system continues at depth

• Potential for very high grade stopes with numerous composite assays greater than 12%

Zn

• Good recoveries and concentrate grades in preliminary metallurgical study
• 80% Cu recoveries with 23% concentrate
• 80% Zn recoveries with 57% concentrate

Category Tonnes Grade Zn (%) Pb (%) Cu (%) Ag (g/t) Au (g/t) Indicated 1,162,00 4.44 2.12 0.31 87.79 0.60 Inferred 445,000 3.88 1.74 0.27 81.63 0.52

Resource Estim ate for Daniels Pond 1

Category Tonnes Grade Zn (%) Pb (%) Cu (%) Ag (g/t) Au (g/t) Indicated 1,095,00 4.61 0.44 0.86 16.6 0.2 Inferred 1,177,00 3.75 0.27 0.95 10.95 0.06

• 1. See Technical Report filed on Minco plc’s company profile at www.sedar.com

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Metallurgical Research Program 2 0 1 6

• DMS - Amenability of the deposits to be physically upgraded (pre-concentration) at the

mine sites by Dense Media Separation (DMS).

• Metallurgy - Identification of a flotation flow sheet and reagent scheme that will allow for

the production of a marketable Cu, Pb and Zn concentrate products from the various deposits.

• Process Sim ulation & Cost Assessm ent - Assess the potential of a centralized milling

concept and provides direction for future project planning.

Research Program Funded by Research Developm ent Corporation ( RDC)

• f New foundland and Labrador I nvestigates:
• DMS viable for Lundberg, Bobbys Pond and semi-massive and stringer samples from

Lemarchant

• Metallurgical works supports developm ent of sequential flotation flow sheet for all

five deposits

• Sequential flowsheet provides better grades and recoveries for Cu, Pb and Zn

concentrates compared with bulk flotation flowsheet.

• Test results and simulations confirm sequential flow sheet yields selective Zn, Pb and

Cu concentrates at m arketable grades

Results of Research Program March 2 0 1 7 :

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Reasons to I nvest in Buchans Resources

 Advanced Zn-Cu-Pb-Au-Ag projects in Newfoundland  Stable, mining-friendly with excellent access to infrastructure and low exploration costs  Newfoundland ranked 14th globally for investment attractiveness by the Fraser Institute in 2016  Existing high grade deposits remain open for expansion  Numerous high priority VMS prospects outside of the current deposits  Many acquisition opportunities in the region  Management team with operating and exploration experience in Newfoundland  Exploration stage Zn-Cu-Pb-Au-Ag projects in Newfoundland  Proven track record of advancing/ developing/ selling projects through feasibility, permitting and construction

Summary

Lucky Strike

www.BuchansResources.com

Buchans Project

• located in one of the world’s premier high-grade VMS base metal mining camps
• hosts a substantial metal inventory with excellent potential for discovery of additional resources
• value underpinned by large, potentially open pitable resource - brownfields site (Lundberg)

Exploration

• positioned to make new discoveries through application of considerable expertise
• including >128,000 m core relogging

Looking Forward

• continue to assess Lundberg as a valuable, advanced resource asset
• focus exploration on discovery of new high-grade orebodies
• complement Lundberg’s development
• new, stand-alone, high-grade underground orebodies

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Buchans Resources Lim ited

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