Buchans Minerals Corporation is focused on developing its Lundberg base-metals deposit and Woodstock manganese property in Newfoundland and New Brunswick, respectively. They have identified significant mineral resources and are pursuing a joint venture while preparing for an economic assessment of Lundberg, projected to enter production around the anticipated zinc shortfall in 2015. Additionally, Buchans has an early-stage gold project in Newfoundland and is optimistic about the economic potential of both projects.

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Mining Rock On The Rock
Buchans has Zinc in Nfld and Manganese in NB
~ By Ted Niles - September 9 2011
It’s a familiar story—junior miner purchases historic producer and discovers inferred to indicated, then it will move to prefeasibility. From there to produc-
significant and mineable remainder. That Newfoundland’s Buchans Mines tion, MacLeod says, would be five years. But before any of these steps can be
were active from 1928 to 1984, producing in excess of 16 million tonnes of taken, the company needs to find a joint-venture partner or “split the project
ore, gives one a better sense of what might possibly remain. Buchans Miner- off into its own private company, get it financed, then ultimately take it public
als President and CEO Warren MacLeod says of the Lundberg base-metals in its own right.” MacLeod says that discussions with interested parties are
deposit, “It is literally underneath the old Lucky Strike glory hole and the old ongoing and that he has a “personal goal to get some kind of deal wrapped
mine buildings. They built the mine site right on top of what they considered, up before Christmas.”
at that time, lower-grade material, but which in today’s world is economic ore.
When we went in there our philosophy was: let’s see what the old timers left MacLeod notes, “Brook Hunt [& Associates] indicate that zinc will go into
behind. It didn’t take us long to find it.” production shortfall from existing mines—as well as probable and possible
mines—around 2015. And the Royal Bank of Canada is projecting 2014-2015
prices of around $1.30 a pound. If we have that kind of price, it would improve
the economics. And if we aggressively pursue this project, it could come into
production right around the time the anticipated shortfall is occurring. The tim-
ing could almost be perfect for Lundberg.”
Meanwhile, Buchans has been working its “dark horse asset,” its 5,800-hect-
are Woodstock manganese property in New Brunswick. An historic (non-NI
43-101 compliant) resource estimated the Plymouth deposit had 46.5 million
tonnes grading 10.9% manganese and 13.3% iron, and the North and South
Hartford deposits had 90 million tonnes at 8% manganese and 12% iron.
MacLeod reports, “When we were researching Woodstock, we came across
a joint federal- and provincial-government report about a program from the
1980s to find out whether you could leach this material. The importance of
this is that if you’re applying leach technology, you’re going to be producing
manganese cheaper than the Chinese, and you’re going to be producing it
using a technology that’s not as tough on the environment as roasting.”
Located outside the town of Buchans, 330 kilometres northwest of St John’s, He continues, “We’re pretty confident that we will be able to leach the material
the Buchans property comprises 12,800 hectares, of which the Lundberg from the ore. If we’re able to achieve that, it will really open the door for this
deposit covers 215 claims over 5,375 hectares. In November 2008 Buchans project to accelerate to a purely economic assessment stage. One of the im-
released an NI 43-101 resource estimate for Lundberg of 20.7 million tonnes portant things to note is that American Manganese’s Artillery Peak deposit is
inferred, with a combined zinc, lead and copper grade of 2.78%. not the only game in town in North America for electrolytic manganese metal.
Woodstock is pretty close on its heels. I think that the scale of this project
Misgivings that this was still not economic grade propelled Buchans to could be significantly larger than Lundberg.”
undertake a preliminary economic assessment. “We believed that Lundberg
could be a standalone mine, and we knew the existing management at the Buchans announced September 7 results from three of the first five holes
time didn’t really know what they were sitting on,” MacLeod says. The PEA drilled at Plymouth. These include 11.43% manganese and 16.14% iron over
confirmed MacLeod’s hopes. Based on a 5,000 tonne-per-day open-pit and 45 metres, 11.43% manganese and 14.9% iron over 89 metres and 9.22%
milling operation with a ten-year mine life, it projected Lundberg would have a manganese and 12.75% iron over 63 metres.
pre-tax internal rate of return of 43.9% and a net present value (at a discount
rate of 6%) of $217.8 million. Average operating costs are estimated at Buchans Minerals Corporation has 150.9 million shares trading at $0.075
$23.79 per tonne with net revenues of $52.95 per tonne. Payback on capital for an $11.3 million market cap. It also has an early-stage gold project, the
expenditures is expected to be 1.5 years. Exclaims MacLeod, “Obviously, it’s Goldquest prospect in southwest Newfoundland, which it holds in 50/50
“
screaming out that this could potentially become a mine!” joint venture with Benton Resources. Drilling is anticipated to begin there in
September.
In addition to good infrastructure and the obvious permitting advantages of
building a mine on a brownfields site, Buchans also owns deposits nearby
that could potentially supplement Lundberg. Among these are Clementine
West, Buchans North and Daniel’s Pond. Located about 30 kilometres west If we aggressively pursue this project, it
of Teck Resources’ Duck Pond mine, Daniel’s Pond has a current NI 43-101 could come into production right around
indicated resource of 1.16 million tonnes grading 4.44% zinc, 2.12% lead, the time the anticipated zinc shortfall is
0.31% copper, 87.79 g/t silver and 0.60 g/t gold and an inferred resource of
450,000 tonnes grading 3.88% zinc, 1.74% lead, 0.27% copper, 81.63 g/t
occurring. The timing could almost be
silver and 0.52 g/t gold. perfect for Lundberg
Buchans anticipates another drilling program to update Lundberg from – Warren MacLeod
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