BuchansResources Limited
Buchans VMS Project, Newfoundland - Update
November 2018
Buchans Resources Limited Buchans VMS Project, Newfoundland - Update - - PowerPoint PPT Presentation
Buchans Resources Limited Buchans VMS Project, Newfoundland - Update November 2018 Buchans Resources Forward-Looking Statements Buchans Resources Limited (Buchans or the Company) has prepared this presentation for information
November 2018
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
us or our advisers, and no representation is given as to its accuracy or completeness. The TSX Venture Exchange nor any other exchange has reviewed and nor do they accept responsibility for the adequacy or accuracy of material presented in this document.
by Dalradian Resources (Aug-2017)
favourable market conditions.”
Alberta, Nova Scotia, and Newfoundland & Labrador… in compliance with…Securities Acts and Regulations in Canada…including NI 43-101… public filings available on SEDAR
Toronto
North Pennine Orefield (Zn-Pb-Ag)
Buchans (Zn-Pb-Cu-Ag-Au)
Woodstock (Mn)
Xtierra Ag-Zn-Pb (22% - TSXV:XAG)
Irish Midland Orefield (Zn-Pb-Ag)
(adjacent - Boliden’s Tara Mine)
Volcanic/epiclastic rocks Ophiolite Deposits >200,000 tonnes
(production and/or reserves)
AVALON ZONE CENTRAL MOBILE BELT
several undeveloped deposits
(Ord. - Buchans Group & Cambro-Ord. Victoria Lake Group)
(after Swinden,1991 and Evans & Kean, 2002) 100 km
Asarco - 16.2 Mt - 23.4% CBM - 14.5%Zn, 7.6%Pb, 1.3%Cu, 1.37g/t Au, 126g/t Ag (mined 1928-84)
potential for open pit development - Lundberg
Map Area
Cambro-Ord. Volc. Millertown
20 km
Buchans
Buchans Resources Properties Canadian Zinc Properties NI 43-101 Compliant Resource Historic mine
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
Lundberg – 100% BRL
Indicated – 23.4 Mt @ 1.41% Zn, 0.60% Pb, 0.35% Cu, 5.31 g/t Ag, 0.07 g/t Au Inferred – 4.3 Mt @ 1.29% Zn, 0.54% Pb, 0.27% Cu, 4.47g/t Ag & 0.08 g/t Au ($15US 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% zinc equiv. 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.)
5.0 Mt @ 4.4% Zn, 2.7% Cu, 53 g/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 – 49% BRL:51% Prominex
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)
500 1,000 1,500 2,000 2,500
Zn (lbs) Pb (lbs) Cu (lbs) 851 361 207 1,179 357 136 2,030 718 342 Millions
>700 million lbs Pb, & >300 million lbs Cu
district’s Cu & Pb, and almost as much Zn as all other deposits combined
* combined Indicated & Inferred 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
metallurgy - recoveries
2PEA based on Inferred Mineral Resources, not Mineral Reserves, and do not have demonstrated economic viability. Inferred Mineral Resources are considered too speculative
geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is therefore no certainty that the conclusions of the PEA will be realized. PEA assumptions: metal prices - ($US) $1.22 Zn/lb, $1.10 Pb/lb, $3.62 Cu/lb, $22.74 Ag/oz; Exchange Rate: $1.012 CAN$:US$.
1Resources that are not mineral reserves do not have demonstrated economic viability. Resource Estimate reported from: Technical Report prepared by Michael Cullen, P.
trailing average metal prices: $0.95 /lb Zn, $1.00 /lb Pb, $3.68 /lb Cu, $29.00 /oz Ag, $1,493.65 /oz Au.
processing - central mill upgraded resource
Since 2011…
Red Indian Lake
deposits (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)
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).
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)
in situ ore
massive sulphides (25-28% Zn-Pb-Cu) (48% of ore mined)
Lundberg H-3356 – 37 m
200 m
Resource Limits - projected to surface 2012 drill hole Previous surface drill hole Workings projected to surface 2013 – Indicated & Inferred (US$15 NSR) Historic underground drill hole 2008 drill hole
Lundberg Zone
14
Engine House Zone
*Figure excludes holes drilled after 2012
Section A (looking Northeast)
0 m 200 m 400 m
NW SE 700 m
2013 Resource Model ($15 US cut off) $0.95 lb Zn $1.00 lb Pb $3.68 lb Cu $29.00 oz Ag $1,493.65 oz Au
Bulk Tonnage Resource
15 to 25 25 to 50 50 to 75 75 to 100 100 to 150
NSR ($ US)
>150 resource blocks 5 m includes Indicated & Inferred
(2013 Resource Block Model)
* excludes holes drilled after 2012
300 m
Two Level glory hole
Lucky Strike
SW NE
2013 Resource Model ($15 US cut off) $0.95 lb Zn $1.00 lb Pb $3.68 lb Cu $29.00 oz Ag $1,493.65 oz Au
Bulk Tonnage Resource
15 to 25 25 to 50 50 to 75 75 to 100 100 to 150
NSR ($ US)
>150
0 m 200 m 400 m 300 m
400 m Section B (looking Northwest)
glory hole
resource blocks 5 m includes Indicated & Inferred
(2013 Resource Block Model)
* excludes holes drilled after 2012
NW SE
2013 Resource Model ($15 US cut off) $0.95 lb Zn $1.00 lb Pb $3.68 lb Cu $29.00 oz Ag $1,493.65 oz Au
Bulk Tonnage Resource
15 to 25 25 to 50 50 to 75 75 to 100 100 to 150
NSR ($ US)
>150
Lucky Strike
glory hole 0 m 200 m 400 m 300 m
300 m Section C (looking Northeast)
resource blocks 5 m3 includes Indicated & Inferred
(2013 Resource Block Model)
* excludes holes drilled after 2012
SW NE
2013 Resource Model ($15 US cut off) $0.95 lb Zn $1.00 lb Pb $3.68 lb Cu $29.00 oz Ag $1,493.65 oz Au
Bulk Tonnage Resource
15 to 25 25 to 50 50 to 75 75 to 100 100 to 150
NSR ($ US)
>150
0 m 200 m 400 m 300 m
300 m Section D (looking Northwest)
resource blocks 5 m3 includes Indicated & Inferred
(2013 Resource Block Model)
* excludes holes drilled after 2012
2018 PROGRAM
STRATEGY
work completed since 2011 PEA (expanded resource, improved metallurgy, milling options)
LUNDBERG
pitable resource
Mill (~2,000 t/d mill)
SkyTEM AEM Surveys
~1,000 ln km in 2 blocks some areas - 1st AEM since 1980’s
Exploration
Buchans Resources Properties NI 43-101 Compliant Resource Historic mine Cambro-Ord. Volc. Millertown
10 km Buchans
Bobbys Deposit Daniels Deposit Lundberg Deposit Buchans Drilling (5,200 m)
2,200 m - Lundberg - (16 ddh) 3,000 m - “other targets” – (10 ddh)
Tulks North Drilling (2,800 m)
1,100 m - Bobbys - (2 ddh) 1,700 m – Daniels - (3 ddh)
BHEM surveys
Buchans & Tulks North exploration potential at depth
underground workings projected to surface 100 m
2018 Results – Lundberg Resource Drilling
1.0 m - 21.99% CBM & 1.8 m - 32.22% CBM
0.10 m - 36.53% CBM
4.8 m - 15.48% CBM 23.8 m - 9.11% CBM
0.5 m - 5.22% CBM
N
2013 Lundberg Resource Outline
28.0 m - 2.63% CBM 152.0 m - 2.49% CBM
0.8 m - 1.7% CBM
29.0 m - 1.86% CBM
6.0 m - 1.23% CBM 10.0 m - 1.0% CBM
35.7 m - 2.57% CBM 8.9 m - 3.93% CBM & 64.0 m - 1.25% CBM 34.7 m - 4.53% CBM
4.0 m 19.61% CBM
0.8 m 24.95% CBM
2.7 m 9.87% CBM
2.65 m 4.61% CBM
5.05 m 5.98% CBM
0.94 m 12.04% CBM
2018 drill hole (angle hole) 2007-12 drill hole historic surface/ underground hole
topographic contours 2 m
2014-15 drill hole
…although further work is needed, we believe availability of remnant high-grade mineralization above Lundberg may ultimately enhance - open pit development...
%CBM- combined Cu+Pb+Zn% - complete assays available on www.buchansresources.com
underground workings projected to surface 100 m
2018 Results – Lundberg Resource Drilling
N
2013 Lundberg Resource Outline
28.0 m - 2.63% CBM 152.0 m - 2.49% CBM
0.8 m - 1.7% CBM
29.0 m - 1.86% CBM
6.0 m - 1.23% CBM 10.0 m - 1.0% CBM
35.7 m - 2.57% CBM 8.9 m - 3.93% CBM & 64.0 m - 1.25% CBM 34.7 m - 4.53% CBM
2018 drill hole (angle hole) 2007-12 drill hole historic surface/ underground hole
topographic contours 2 m
2014-15 drill hole
…although further work is needed, we believe availability of remnant high-grade mineralization above Lundberg may ultimately enhance - open pit development...
%CBM- combined Cu+Pb+Zn% - complete assays available on www.buchansresources.com
underground workings projected to surface 100 m
2018 Results – Lundberg Resource Drilling
1.0 m - 21.99% CBM & 1.8 m - 32.22% CBM
0.10 m - 36.53% CBM
4.8 m - 15.48% CBM 23.8 m - 9.11% CBM
0.5 m - 5.22% CBM
N
2013 Lundberg Resource Outline
4.0 m 19.61% CBM
0.8 m 24.95% CBM
2.7 m 9.87% CBM
2.65 m 4.61% CBM
5.05 m 5.98% CBM
0.94 m 12.04% CBM
2018 drill hole (angle hole) 2007-12 drill hole historic surface/ underground hole
topographic contours 2 m
2014-15 drill hole
…although further work is needed, we believe availability of remnant high-grade mineralization above Lundberg may ultimately enhance - open pit development...
%CBM- combined Cu+Pb+Zn% - complete assays available on www.buchansresources.com
100 m
2013 Lundberg Resource Outline
Two Level underground workings projected to surface
BuchansResources
Lucky Strike Drilling
N
2018 BRL drill hole
2007-15 BRL drill hole historic surface/ underground hole
topographic contours 2 m
H-18-3500 (-58°) H-18-3501 H-18-3502 H-18-3503 H-18-3504 H-18-3505 H-18-3506 (-45°) H-18-3516b (-45°) H-18-3515 (-84°) H-18-3520 H-18-3519 H-18-3514 H-18-3521 H-18-3518 (-48°)
H-18-3526 in progress H-18-3523 - no significant mineralization horizon faulted out at this location H-18-3524 1.80 m 9.48% CBM 0.76% Cu, 3.15% Pb, 5.57% Zn, 90.5 g/t Ag & 0.37 g/t Au
1.26% Cu, 4.87% Pb, 8.70% Zn, 133.2 g/t Ag & 0.47 g/t Au
Two Level (proximal-transported)
0.30 Mt - 0.5% Cu, 4.6% Pb, 8.0% Zn, 125 g/t Ag, 1.6 g/t Au (mined)
North Orebody (proximal-transported)
0.55Mt @ 0.5% Cu, 4.5% Pb, 8.2% Zn, 123 g/t Ag, 1.7 g/t Au (mined)
1 km
N
Lucky Strike
BRL BRL BRL BRL Sandfill
(transported) Oriental
Lundberg
Sandfill Target Area Clementine Target Area Oriental East Target Area West Orebodies Target Area Lucky Strike North Target Area Middle Branch Target Area Old Buchans North Target Area
Other Target Areas
“other targets” 2018 drilling
Target Areas
(relogging)
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) Prospect (undeveloped, projected to surface) Lundberg & Engine House Zone (projected to surface) Lundberg Model Open Pit
500 m
breccia-tuffs conglomerate
(granite cobbles)
thrust panel - “other rocks” (above Buchans rocks)
BRL
Lundberg (stockwork)
Lucky Strike (in situ & proximal-transported) 5.6 Mt @ 1.6% Cu, 8.6% Pb, 18.4% Zn, 112 g/t Ag, 1.7 g/t Au (mined) Middle Branch (transported) (hist. intercept) 1.8 m - 0.4% Cu, 3.1% Pb, 4.8% Zn, 48 g/t Ag & 0.7 g/t Au Oriental (in situ & transported) 3.3 Mt -1.47% Cu, 7.90% Pb, 14.18% Zn, 154.0 g/t Ag & 1.96 g/t Au (mined) Sandfill (transported) (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
Buchans Lake
500 m
barren rocks thrust over prospective Buchans rocks
Middle Branch (transported)
H-1910 (historic) 1.83 m - 8.3% CBM (0.4% Cu, 3.1% Pb, 4.8% Zn, 48 g/t Ag, 0.69 g/t Au)
1582 3350
2018 Sandfill Drilling - Buchans
Thrust Fault Ski Hill (basalt/ intermediate fragmentals)
Geology
Sandy Lake (prominent qtz rhyolite/ arkose/basalt) Diabase Buchans River (rhyolite/ m.sulphs./ basalt/ felsic tuffs Surface/ underground DDH & historic assays BRL DDH (2007-15)
2018 BRL drill hole
N
too shallow too shallow too shallow too shallow?
limits - transported sulphides (projected to surface)
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, 0.38 g/t Au
H-18-3513 - transported sulphides - 7.0 m - 7.4% CBM Upper Zone
and 3.10 m - 6.4% CBM Lower Zone
assays pending
Sandfill (transported) narrow diam. drilling 300-400 m depth - 25-35 m OB
assays pending
500 m
barren rocks thrust over prospective Buchans rocks
Middle Branch (transported) H-1910 (historic) 1.83 m - 8.3% CBM (0.4% Cu, 3.1% Pb, 4.8% Zn, 48 g/t Ag, 0.69 g/t Au)
1582 3350
Sandfill - Middle Branch Drilling Buchans - 2018
Thrust Fault Ski Hill (basalt/ intermediate fragmentals)
Geology
Sandy Lake (prominent qtz rhyolite/ arkose/basalt) Diabase Buchans River (rhyolite/ m.sulphs./ basalt/ felsic tuffs Surface/ underground DDH & historic assays BRL DDH (2007-15)
2018 BRL drill hole
N
too shallow too shallow
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, 0.38 g/t Au
H-18-3513 - Sandfill Prospect transported sulphides (assays released October 17, 2018) Upper Zone 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
Lower Zone 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
H-18-3522 - Middle Branch transported sulphides 0.30 m - 0.23% CBM - 0.07% Pb, 0.16% Zn, 162.8 g/t Ag & 0.054 g/t Au
Sandfill (transported)
H-18-3525 assays pending
Daniels Pond deposit Bobbys Pond deposit
Advanced Exploration Opportunities
Footwall volcanics Hanging wall volcanics Massive to semi-massive sulphides - Daniels – SW Zone
Approximately 5 metres
Exploration Potential At Depth
0 m 100 m 200 m 300 m 400 m 500 m
depth m
Relative NSR Value
High Low
uncategorized resource block model
(5x5 m blocks)
Drilled Pierce Point
Bobbys Deposit
LONGITUDINAL VIEW (looking northwest)
100 m 100 m
BP-18-41 (600 m)
visible base metal sulphides (assays pending) BP-18-40 (328 m) 10-15% pyrite with base metal sulphides
pending)
* 2018 program to include
surveying of new and select historic drill holes by BHEM
4 m
blue shading & contours grade (Zn) x thickness (m)
(contour interval 10 units & incl. 2008 drill results)
drill hole pierce point
SW Lens NE Lens
100 m 100 m 100 m 200 m 300 m 400 m depth m
DN-52 – 6.1 m 1.2% Zn, 0.2% Pb, 0.2% Cu, 8.4 g/t Ag
500 m 600 m
8 m 12 m 16 m 24 m 4 m 4 m
Massive Pyrite Lobe
Contoured True Thickness (m)
4 m 16 m
proposed hole with Borehole TDEM search radius (~75 m) Indicated Resource Inferred Resource 2008 drill hole - post 2007 resource estimate
(all holes returned low grade
threshold >1% Zn)
500 m 600 m 700 m
Exploration Potential At Depth
DN-18-130 - 3.5 m semi-massive pyritic sulphides
1.5 m - 0.11% Cu, 0.65% Pb, 1.46% Zn, 24.5 g/t Ag & 0.33 g/t Au
DN-18-131
8.6 m massive pyrite & 5.70 m semi- massive pyrite (assays pending)
DN-18-132
~2 m semi-massive pyritic sulphides (assays pending)
resources
Lucky Strike remnants - may enhance open pit development
into a new PEA
Special thanks: Town of Buchans Department of Natural Resources - Buchans Core Library Department of Natural Resources - Junior Exploration Assistance Lucky Strike
www.buchansresources.com