Attention Business/Financial Editors:
Buchans River receives NI 43-101 resource estimate report on Tulks Hill T3 Lens - Nova Scotia Supreme Court approves arrangement with Royal Roads
Trading Symbol: BUV - TSX-V
Shares Outstanding: 33,694,557
HALIFAX, July 24 /CNW/ - Buchans River Ltd. (BUV-TSX-V) ("Buchans River")
is pleased to report that it has received an initial resource estimate,
compliant with CIM Guidelines and National Instrument 43-101, of the T3 Lens
at the Tulks Hill zinc, lead, copper, silver, gold project in central
Newfoundland and Labrador. The Tulks Hill project is owned 49% by Buchans
River and 51% by Prominex Resource Corp. (PXP-TSX-V), the joint venture
operator. Buchans River also announced that the Nova Scotia Supreme Court
granted an order approving a plan of arrangement with Royal Roads Ltd.
(RRO- TSX-V).
Tulks Hill Resource Estimate
The Tulks Hill project is located approximately 40 km southwest of the
former mining town of Buchans, 55 km west of the Duck Pond mine, 25 km
southwest of Royal Roads Corp's Daniels Pond deposit, 15 km northeast of
Messina's Boomerang deposit and 5 km southwest of Messina's Tulks East
prospect. The property is accessible from the nearby towns of Buchans and
Millertown by well-maintained pulpwood haulage roads.
The initial resource estimates, completed by Scott Wilson Roscoe Postle
Associates Inc. ("Scott Wilson RPA"), incorporate all drilling completed at
Tulks Hill to date and were calculated by constructing a block model of the
mineralized zones. The resource estimate is in accordance with the Mineral
Resource/Reserve Classification as recommended by the CIM Committee on Mineral
Resources/Reserves. Indicated Mineral Resources include those mineralized
blocks defined by diamond drill holes spaced 50 m or less. The following table
summarizes the Resource Estimate from the Scott Wilson RPA Report:
<<
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SCOTT WILSON RPA MINERAL RESOURCE ESTIMATE OF THE T3 LENS, JUNE 2008
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Tulks Hill Deposit
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Mineral Resources Above the Adit
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Grade
Zone Category Tonnes % Cu % Zn % Pb g/t Ag g/t Au
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2 Indicated 290,000 0.91 5.03 2.00 38.81 1.24
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3 Indicated 30,000 0.52 2.67 1.53 61.52 0.59
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Total Indicated 320,000 0.87 4.81 1.96 40.94 1.18
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Mineral Resources Below the Adit and Elsewhere
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Grade
Zone Category Tonnes % Cu % Zn % Pb g/t Ag g/t Au
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1 Indicated 4,000 0.79 1.09 0.41 26.19 0.31
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2 Indicated 44,000 0.76 1.77 0.56 19.53 2.76
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3 Indicated 5,000 0.52 2.46 1.39 57.95 0.66
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4 Indicated 58,000 1.12 1.42 0.60 15.09 0.06
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Total Indicated 111,000 0.94 1.55 0.60 18.24 1.15
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Notes: 1. CIM definitions were followed for the resource estimate.
2. Mineral Resources are estimated at a cut-off grade of
1.1% Copper equivalent (CuEq) cut-off grade and a minimum
horizontal width of 2.0 m for a mineralized zone.
3. Average density of mineralized rock is 4.38 t/m3.
4. Totals may not add due to rounding.
>>
Based on its review of technical reports on past exploration and
publications, Scott Wilson RPA concludes, using a 1.1% Cu-equivalent (CuEq)
cut-off grade and a minimum 2 m horizontal thickness of mineralization, the
T3 Lens of the Tulks Hill deposit contains some 431,000 tonnes of Indicated
Mineral Resources at an average grade of 0.89% Cu, 3.97% Zn, 1.61% Pb,
35.09 g/t Ag and 1.17 g/t Au. In general, independent sampling by Scott Wilson
RPA confirms the presence of copper and zinc values at essentially the same
order of magnitude as the Prominex or Asarco assays. The differences are
considered to be due to the variability in base and precious metal values
between the two halves of the core, and due, possibly, to the different assay
methodologies at the two laboratories, Asarco's lab at Buchans and SGS, and
are not material in Scott Wilson RPA's view. The thickness of individual
mineralized zones ranges from less than 2 m to 12 m. Zinc and copper
mineralization terminates at the margins of the T3 Lens, but minor amounts of
base metal mineralization continue into the wallrocks. There is good potential
for discovery of additional Cu-Zn-Pb-Ag-Au mineralization northeast,
southwest, and southeast of the T3 Lens.
The Tulks Hill Property is underlain by Ordovician metasedimentary and
metavolcanic rocks, which are part of the Appalachian Belt in western
Newfoundland. Base metal mineralization is volcanogenic massive sulphide (VMS)
type and occurs within a linear zone of quartz-sericite-pyrite alteration,
which is identifiable as a northeast trending and almost vertical structural
zone. This structural zone is also parallel to the regional foliation in the
area. Overall, the base metal mineralization is stratabound and shear-hosted,
but is present within different facies of fragmental felsic volcanic rocks.
At least four mineralized lenses (T1, T2, T3 and T4) are recognized
within the 300 m to 50 m wide alteration zone along the strike of the Tulks
Hill deposit. Only two of these lenses, however, T3 and T4, can be traced for
a strike length of approximately 200 m. The two main mineralized zones
(Lens T3 and T4) are present within a 40 m to 50 m wide grey alteration zone
with typical sericite and pyrite alteration.
Hrayr Agnerian, M.Sc. (Applied), P.Geo., an independent Qualified Person
as that term is defined in National Instrument 43-101 ("NI 43-101"), is the
author of the report dated July 22,, 2008 entitled "Technical Report on the
Tulks Hill Cu-Zn Property, Newfoundland" prepared for Prominex Resource Corp.
and Buchans River, which is filed on SEDAR. Mr. Agnerian has reviewed and
approved the technical contents of this news release.
Arrangement with Royal Roads
----------------------------
On July 23, 2008, the shareholders of Buchans River voted overwhelmingly
in favour of a resolution to approve a plan of arrangement ("Arrangement")
involving Buchans River and Royal Roads. On July 24, 2008, the Nova Scotia
Supreme Court granted an order approving the Arrangement. The Arrangement
remains subject to receipt of a certificate from the Director under the Canada
Business Corporations Act. On the effective date of the Arrangement, which is
expected to be July 28, 2008, shareholders of Buchans River will receive
1.55 shares of Royal Roads for each share of Buchans River. A letter with
instructions on how to exchange the shares will be sent to Buchans'
shareholders shortly after the Arrangement becomes effective. Trading in the
shares of Buchans River has been halted pending completion of the Arrangement.
About Buchans River and Royal Roads
-----------------------------------
Buchans River is a resource company based in Halifax, Nova Scotia, Canada
and is focused on exploring and developing base metal properties in the famous
Buchans mining camp in central Newfoundland and Labrador, Canada. Buchans
River is 26.39% controlled by Royal Roads. Royal Roads is a Halifax-based
resource company also developing base metal properties in Newfoundland and
Labrador. Together, Royal Roads and Buchans River control a total of
33,700 hectares within central Newfoundland's Victoria Lake and Buchans mining
camps, including the historic Buchans mine (owned by Buchans River) and the
Daniels Pond deposit (owned by Royal Roads). Buchans River also controls
several exploration properties outside of the Buchans camp, including several
under joint venture to Prominex Resource Corp. (PXR - TSX-V) and Playfair
Mining Ltd. (PLY - TSX-V), which are being actively explored. Royal Roads is
44.40% controlled by Acadian Mining Corp., a Halifax based resource company
developing gold and base metal properties, including the Scotia Mine (lead and
zinc) in Nova Scotia.
Forward Looking Statements
--------------------------
Certain information regarding Buchans River contained herein may
constitute forward-looking statements within the meaning of applicable
securities laws. Forward-looking statements may include estimates, plans,
expectations, opinions, forecasts, projections, guidance or other statements
that are not statements of fact. Although Buchans River believes that the
expectations reflected in such forward-looking statements are reasonable, it
can give no assurance that such expectations will prove to have been correct.
Buchans River cautions that actual performance will be affected by a number of
factors, many of which are beyond the Buchans River's control, and that future
events and results may vary substantially from what the Company currently
foresees. Buchans River's forward-looking statements are expressly qualified
in their entirety by this cautionary statement.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
%SEDAR: 00004513E
For further information: about Buchans River: Warren G. MacLeod,
President & CEO of Buchans River; David Felderhof, Vice-President of Buchans
River, (902) 444-3637
