The Daniels Pond volcanogenic massive sulphide deposit is located within the Corporation’s 100% owned Tulks North property covering 16,075 hectares (approximately 32 km x 5 km) within the Victoria Lake mining camp in central Newfoundland. The Daniels Pond deposit hosts a NI-43-101-compliant Indicated Resource at a 1.5% Zn cut-off of 1.16 million tonnes grading 4.44% zinc, 2.12% lead, 0.31% copper, 87.79 g/t silver and 0.60 g/t gold, as well as an additional Inferred resource totaling 0.45 million tonnes grading 3.88% Zn, 1.74% Pb, 0.27% Cu, 81.63 g/t Ag and 0.52 g/t Au (Royal Roads news release dated March 13, 2008). The bulk of these resources occur within 150 metres of surface in two lobes of mineralization.
In 2011, once a preliminary econimic assessment of the Lundberg deposit has been completed, the Company may consider completing a mining plan and detailed metallurgical tests on the Daniels Pond deposit with a view to contributing as a satelite operation to a potential mine facility located at the Lundberg deposit in Buchans.
The deposit is located within the highly prospective Tulks North property, being located within the northern half of the Tulks Volcanic belt, the same belt of rocks that hosts Messina Minerals’ Boomerang, Hurricane and Tulks East base metal deposits, as well as the Tulks Hill deposit jointly owned by Royal Roads (49%) and joint venture partner, Prominex Resources (51%). The Corporation’s Daniels Pond deposit is also located less than 10 kilometres southwest of Mountain Lake’s Bobbys Pond base metal deposit and less than 30 kilometres west of Teck Resources operating Duck Pond mine. Considering the number of VMS base metal deposits within the area and the extensive number of untested exploration targets and under-explored ground, Tulks North may be considered for joint venture.
Daniels Pond Resource
Daniels Pond Mineral Resource Estimate by Zn% Cut-off Effective March 11, 2008
Category
Cut-off (Zn %)
Tonnes
Combined Zn%+Pb%+Cu%
Zn %
Pb %
Cu %
Ag g/t
Au g/t
Indicated
1.5
1,162,000
6.88
4.44
2.12
0.31
87.79
0.60
2.0
929,000
7.98
5.13
2.50
0.34
101.40
0.63
2.5
787,000
8.79
5.65
2.77
0.37
111.03
0.68
Inferred
445,000
5.89
3.88
1.74
0.27
81.63
0.52
332,000
7.04
4.61
2.13
0.30
85.86
0.53
236,000
8.70
5.59
2.79
0.32
112.31
0.55
Ownership
The Tulks North property, within which is located the Daniels Pond deposit, is held 100% by Buchans Minerals Corporation with a back in right of 50% to Noranda Inc. should Buchans Minerals discover a single deposit of 15 million tonnes or greater (as shall be documented by a preliminary feasibility study). In addition Noranda retains a 1.5% net smelter royalty. In the event Noranda elects to exercise its back-in right, Noranda must pay Buchans Minerals an amount equal to two times its expenditures plus $3,000,000 when commercial production is achieved. Buchans Minerals has notified Noranda that the expenditure obligation has been met.
Daniels Pond News
Daniels Pond Resource Report
Property Map
Long Section
Plan Map
Daniels Pond Mineralization at Surface
