Trading Symbol: TSXV: BMC
Shares Outstanding: 166,283,160
WINDSOR, NS,
Feb. 14, 2013 /CNW/ - Buchans
Minerals Corporation (TSXV: BMC) ("Buchans Minerals" or the
"Company"), and Minco plc (AIM Market: MIO) ("Minco")
are pleased to announce initial drilling results for the
Woodstock manganese project in
New Brunswick. The first
hole of the current program, PL-11, was drilled at the northwest
end of a line of previously drilled holes and completes a central
section across the deposit. The new hole, PL-13-011, has returned
assays averaging 11.25% Manganese over 113.85 metres core
length (95 m approximate true width). Interpretation of this
section of five holes indicates the mineralization is hosted by a
folded sedimentary sequence occurring as several lobes of
mineralization within a synclinal fold structure. Results
from this section confirm the near surface width of the deposit at
this location as being approximately 225 metres and typically
extending to depths of 100 metres or more (see the cross section on
the Company's website). The current program is designed to allow
estimation of a National Instrument 43-101 ("NI-43-101") compliant
Inferred Resource that will assess mineralization previously
reported as uncategorized historic resources within the historic
Plymouth deposit.
Warren MacLeod,
President & CEO of Buchans Minerals stated "We are
pleased that the first complete drilled section through the deposit
since the 1950's confirms high grades and large widths that provide
early indications to suggest that the deposit may be amenable to
open pit mining with stripping ratios anticipated to be very
low. These results provide encouragement that we may attain
our goal of upgrading a significant portion of the historical
resource to a NI 43-101 compliant Inferred Resource required to
complete a preliminary economic assessment."
Drilling continues with 8 holes complete or in
progress with approximately 1,800 metres drilled to date. The
program is expected to be complete in March
2013 and include 14 to 18 holes totaling 3,700 to 4,350
metres of drilling. Additional assays will be released as they
become available and a map and sections displaying drilling
locations and assays are available at the Company's website at
www.buchansminerals.com. A table showing individual assays along
with composite averages is presented below.
| Hole |
From (m) |
To (m) |
length (m) |
Mn % |
Fe % |
| PL-13-011 |
51.65 |
165.50 |
113.85 |
11.25 |
12.53 |
| |
51.65 |
54.65 |
3.00 |
11.27 |
14.13 |
| |
54.65 |
57.65 |
3.00 |
11.85 |
15.60 |
| |
57.65 |
61.20 |
3.55 |
7.78 |
10.91 |
| |
61.20 |
63.90 |
2.70 |
6.61 |
10.53 |
| |
63.90 |
66.90 |
3.00 |
3.16 |
5.57 |
| |
66.90 |
68.00 |
1.10 |
4.30 |
7.73 |
| |
68.00 |
71.00 |
3.00 |
14.37 |
16.09 |
| |
71.00 |
74.00 |
3.00 |
16.57 |
16.02 |
| |
74.00 |
77.00 |
3.00 |
10.38 |
20.70 |
| |
77.00 |
80.00 |
3.00 |
9.84 |
14.76 |
| |
80.00 |
83.00 |
3.00 |
5.83 |
12.21 |
| |
83.00 |
86.00 |
3.00 |
12.39 |
18.88 |
| |
86.00 |
87.40 |
1.40 |
14.17 |
15.74 |
| |
87.40 |
90.50 |
3.10 |
14.95 |
19.02 |
| |
90.50 |
93.50 |
3.00 |
11.62 |
17.42 |
| |
93.50 |
96.50 |
3.00 |
15.64 |
17.49 |
| |
96.50 |
99.50 |
3.00 |
14.29 |
20.56 |
| |
99.50 |
102.50 |
3.00 |
2.65 |
7.73 |
| |
102.50 |
105.50 |
3.00 |
6.64 |
11.16 |
| |
105.50 |
108.50 |
3.00 |
10.49 |
13.32 |
| |
108.50 |
111.50 |
3.00 |
6.40 |
13.22 |
| |
111.50 |
114.50 |
3.00 |
6.58 |
13.43 |
| |
114.50 |
117.50 |
3.00 |
10.80 |
14.48 |
| |
117.50 |
120.50 |
3.00 |
15.10 |
17.14 |
| |
120.50 |
123.50 |
3.00 |
16.03 |
20.28 |
| |
123.50 |
126.50 |
3.00 |
11.89 |
22.45 |
| |
126.50 |
129.50 |
3.00 |
13.17 |
20.00 |
| |
129.50 |
132.50 |
3.00 |
15.64 |
19.58 |
| |
132.50 |
135.50 |
3.00 |
14.40 |
20.28 |
| |
135.50 |
138.50 |
3.00 |
14.95 |
19.79 |
| |
138.50 |
141.50 |
3.00 |
12.35 |
20.91 |
| |
141.50 |
144.50 |
3.00 |
13.24 |
19.02 |
| |
144.50 |
147.50 |
3.00 |
13.24 |
18.95 |
| |
147.50 |
150.50 |
3.00 |
14.48 |
18.47 |
| |
150.50 |
153.50 |
3.00 |
11.27 |
16.01 |
| |
153.50 |
156.50 |
3.00 |
12.43 |
13.99 |
| |
156.50 |
159.50 |
3.00 |
9.91 |
10.60 |
| |
159.50 |
162.50 |
3.00 |
13.24 |
15.18 |
| |
162.50 |
165.50 |
3.00 |
7.94 |
14.20 |
| Select assays from hole PL-13-011. Lengths reported are
core lengths in metres. True widths are estimated to be
approximately 83% of core length based on interpreted cross
sections. Hole PL-13-011 was collared at UTM NAD83, Zone 19
coordinates 603,672 m East, 5,113,395 m North where it was drilled
at a dip angle of 45 degrees towards azimuth 118 degrees from True
North. |
Plymouth Historic Resource:
The Plymouth
deposit is comprised of a non NI-43-101 compliant, historic,
uncategorized resource estimate totaling 151.2
million tons (46.5 million tonnes) averaging 10.9% Mn (manganese)
and 13.3% Fe (iron). This estimate was compiled by Strategic
Manganese Corporation in 1957 and is reported to include
mineralization extending from surface to depths of 500 feet (152
metres). The historical resource estimate is based on data obtained
and prepared by previous operators and neither Buchans Minerals nor
Minco has located original assay sheets or details of the
estimation methodology or the key assumptions or parameters,
underlying the estimate. A qualified person has not done sufficient
work to verify or classify the historical mineral resource estimate
as current mineral resources. Neither Buchans Minerals nor Minco is treating the
historic resource estimate as NI 43-101 defined current mineral
resources verified by a qualified person, and the estimate should
not be relied upon. Verification and classification of the
historical resource estimate as current mineral resources will
require considerable further evaluation. For this reason, the
Company has initiated the current resource drilling program to
provide sufficient reliable information to complete a NI 43-101
compliant resource estimate of the Plymouth mineralization. The Company has
retained independent consultants, Mercator Geological Services
Limited, of Dartmouth Nova Scotia
to complete a new NI-43-101 compliant estimate of resources upon
completion of the current drill program.
Minco Option Agreement:
Minco has the right to earn up to a 50% interest
in the Canadian Manganese Company Inc. ("CMC"), a wholly owned
subsidiary of Buchans Minerals
that owns 100% of the Woodstock
manganese property. Minco has committed to earning a 10% interest
in CMC by spending phase one expenditures of $1.250 million to fund drilling an inferred
resource on the Plymouth and
additional hydrometallurgical test work seeking to optimize the
flowsheet to produce high-grade electrolytic manganese metal
("EMM").
Following this initial expenditure commitment,
Minco will have 30 days to elect to continue with further
expenditures of $750,000 over a
period of six months (second phase expenditures) to complete a
preliminary economic assessment ("PEA") on the Plymouth deposit to earn a further 10%
interest in CMC. If Minco elects not to proceed with the second
phase of expenditures, Buchans
will have a 90 day option to buy back Minco's 10% interest in CMC
back for $1.250 million.
Upon completion of the PEA, Minco will have an
exclusive 3 month option to elect to earn a further 30% interest in
CMC by completing an NI 43-101 compliant pre-feasibility report on
the Plymouth deposit within two
years (the budget to be determined at that time). Buchans Minerals
will be the operator for all work programs performed under the
option agreement with Minco.
Qualified Persons:
Paul Moore, MSc,
P.Geo., (NL), Vice-President Exploration for Buchans Minerals is acting as a Qualified
Person in compliance with NI-43-101 with respect to the geological
technical information contained in this release and has reviewed
and approved the contents for accuracy. Except the historical
mineral resource estimate disclosed in this news release,
Paul Moore has verified the data
disclosed in this release, including the sampling, analytical and
test data underlying the information contained in this release, in
accordance with Buchans Minerals'
QA/QC protocols as described below. Results presented
from past work include drilling results and assays previously
released by Buchans Minerals in 2011 (2011 drilling assays) as well
as assays and geological information available in the public domain
as reported by past workers in 1988 in New Brunswick Department of
Natural Resources and Energy Open File Report 90-4.
QAQC:
Logging, sampling and assaying procedures were
completed by Buchans Minerals
personnel as per Buchans Minerals QA/QC protocols. Drill core was
descriptively logged on site, aligned, marked for sampling and then
split in half, longitudinally, using a diamond saw blade. Samples
consist of half NQ-size diamond core (47.6 mm diameter core).
One-half of the core is preserved in core boxes for future
reference. As part of Buchans Minerals' QAQC protocols, samples
comprising the other half of the core were bagged, tagged, sealed
and shipped to ALS Minerals ("ALS") in Sudbury, Ontario. Samples are typically
collected using a nominal three metre core length, except where
specific geologic parameters require a smaller interval be
sampled.
Sample preparation was completed by ALS with
each sample crushed to ≥70% passing 6 mm, a 250 g Riffle split is
then pulverized to ≥85% passing 75 micron. Buchans Minerals
submitted blanks (one per 20 samples), certified standards (one per
20 samples), and field duplicates (halved core sample split into
two quartered samples, once every 20 samples) for preparation and
assay to ensure appropriate QA/QC protocols were applied. ALS
analyzed submitted samples using their ME-XRF06 (borate fusion)
procedure as well as sulphur and specific gravity determinations
using their Leco (S-IR08) and pyncometer (OG-GRA08b) methods
respectively. In addition, Buchans Minerals will ensure one
in every 20 samples will be sent for check assays at SGS Canada
Inc. using SGS's XRF-76 borate fusion XRF analytical
procedure. SGS check assay results will be used for
additional QAQC during resource estimation. Where indicated,
estimated true widths are based interpretation of geological cross
sections and typically equate to 83% of the intercepted core
length.
References:
1 Historic resource estimate
from an article written by K.O.J.
Sidwell, 1957: The Woodstock,
N.B., Iron-Manganese Deposits. Transactions of the Canadian
Institute of Mining and Metallurgy, Volume LX, 1957, p.231-236. The
article reports the resource is compiled from data acquired from a
total of 17,388 feet (5,300 metres) of drilling.
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 (optioned to
Minco plc.), its 100% owned manganese property located near
Woodstock (optioned to Minco) in
New Brunswick and its 50% owned
gold & copper Long Range Property in central Newfoundland.
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.
Forward Looking Statements &
Disclaimer
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 Buchans Minerals projects, 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 TSX Venture
Exchange (the "Exchange") 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.