Buchans and Boliden to advance VMS project

Canadian mineral exploration and development company Buchans Resources has entered into a collaboration agreement with Boliden Mineral AB, a European-based mining and metals producer.

Under the agreement, Boliden will evaluate Buchans’ wholly-owned Buchans volcanogenic massive sulphide (VMS) base metals property in central Newfoundland, 56 km southeast of Deer Lake. 

“We are very pleased to sign this collaboration agreement with Boliden that will combine our company’s in-depth, hands-on, knowledge of the historic Buchans camp with Boliden’s experience and technological expertise in near-mine exploration for VMS base metal deposits,” John Kearney, Buchans’ chairman and CEO, said in a press release.

Buchans has agreed to grant Boliden exclusivity for one year ending December 31, 2021, to complete its evaluation and negotiate an earn-in and option agreement and joint venture agreement.

During this period, Buchans has agreed not to provide information or negotiate with any third party on the project and, subject to Boliden submitting a proposal, a right of first refusal for a further six-month period.

Boliden will share technical data from its geology/geophysical review with Buchans and contribute C$600,000 to Buchans towards the costs of maintaining the property and approved exploration and evaluation programs undertaken by Buchans during the exclusivity period.

“We believe this collaboration between Boliden and Buchans can lead to future discoveries of new buried, high-grade, orebodies that could lead to revitalization of this world-renowned historic VMS mining camp,” Kearney said.

In 2020, Buchans conducted exploration of the property to identify new high-grade deposits, which included re-logging of archived drill core drilled by past operators and the compilation of historical work.

To date, the company has re-logged more than 154,000 metres of archived drill core from approximately 850 drill holes, including several target areas adjacent to several of the project’s historic, undeveloped deposits and prospects. These include the Lundberg sulphide deposit, a potential open-pit mine development comprised of near-surface, lower-grade stockwork mineralisation.

In March 2019, an updated mineral resource estimate for Lundberg outlined indicated resources of 16.79 million tonnes grading 1.53% zinc, 0.64% lead, 0.42% copper, 5.69 grams silver per tonne, and 0.07 gram gold per tonne (3.38% zinc equivalent) for 1.25 billion lb. contained zinc equivalent. Inferred resources add 380,000 tonnes grading 2.03% zinc, 1.01% lead, 0.36% copper, 22.35 grams silver, and 0.31 gram gold (4.46% zinc equivalent) for 37 million lb. of zinc equivalent.

(This article first appeared in The Northern Miner)