Buchans Resources Limited Buchans Base Metals Project, Newfoundland - Update …heart of one of the world’s highest-grade VMS mining camps… January 2 2020
Buchans Resources Forward-Looking Statements Buchans Resources Limited (“Buchans” or the “Company”) has prepared this presentation for information purposes only. The information contained herein was prepared by management on a best efforts basis and is believed to be accurate. This presentation contains or refers to "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements in this release, other than statements of historical fact, which address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking information. Wherever possible, words such as "plans", "expects" or "does not expect", "budget", "scheduled", "estimates", "forecasts", "anticipates" or "does not anticipate", "believes", "intends" and similar expressions or statements that certain actions, events or results "may", "could", " "would", "might" or "will" be taken, occur or be achieved, have been used to identify forward-looking information. In particular, all statements in this presentation that address estimated resource quantities, grades and contained metals, possible future mining, and exploration and development activities are forward looking statements. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results. Shareholders and prospective investors are cautioned not to place undue reliance on forward- looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law. This presentation may contain certain information derived from official government publications, industry sources and third parties. While we believe inclusion of such information is reasonable, such information has not been independently verified by us or our advisers, and no representation is given as to its accuracy or completeness. 2
Buchans Resources The Company Canadian Junior Company focused in world- renowned base metal mining districts … Voisey’s Bay Style Ni-Cu-Co demonstrated potential for exceptional mines Orogenic Au Buchans Historic Mining Camp Toronto (Zn-Pb-Cu-Ag-Au) Buchans Resources (TSXV or CSE) Xtierra Ag-Zn-Pb (own 22% - TSXV:XAG) base metals & Ag Skarn Dec 31, 2019 - Reorganisation Completed 3 Separate Focused Companies …”each of the Companies plans to take steps to apply for separate stock exchange listings”… 3
Buchans Resources Historical Production from Canada’s First Mineral District i n Central New foundland Buchans Mine Operator: ASARCO 1927 to 1984 Production: 16.2 million tonnes averaging 14.5% Zn, 7.6% Pb, 1.3% Cu, 1.37 g/ t Au, 126 g/ t Ag from five separate deposits (Lucky Strike ,Old Buchans, Oriental, Rothermere, and MacLeans) Duck Pond Mine Operator: Teck Resources 2007 to 2015 Production: 5.4 million tonnes averaging 5.8% Zn, 0.9% Pb, 3.3% Cu, 0.86 g/ t Au and59 g/ t Ag 4
Buchans Resources Buchans among world’s highest grade volcanogenic massive sulphide (VMS) camps • Asarco: 16.2 Mt >23% CBM ( Zn+Pb+Cu ) - 1.3% Cu, 7.6% Pb, 14.5% Zn, 1.37 g/t Au & 126 g/t Ag (historic production; 1928-84) • excellent infrastructure - mining friendly jurisdiction • explore for new high-grade mines • lower grade resources left behind by past operators • district hosts multiple VMS deposits - potentially contribute production 5
Buchans Resources District Opportunity Buchans (past prod.) 16.2 Mt 14.5% Zn, 7.6% Pb, 1.3% Cu, 1.37 g/t Au & 126 g/t Ag Buchans Lundberg – 100% BRL (Asarco, 1928-1984) Indicated – 16.79 Mt @ 1.53% Zn, 0.64% Pb, 0.42% Cu, 5.69 g/t Ag, 0.07 g/t Au Millertown Inferred – 0.38 Mt @ 2.03% Zn, 1.01% Pb, 0.36% Cu, 22.35 g/t Ag & 0.31 g/t Au ($20US NSR cut-off) Buchans Resources NorZinc Properties NI 43-101 Resource Daniels – 100% BRL Indicated-0.93 Mt @ 5.1% Zn, 2.5% Pb, 0.3% Cu, Historic mine 101.4 g/t Ag, 0.6 g/t Au Inferred- 0.33 Mt @ 4.6% Zn, 2.1% Pb, 0.3% Cu, 85.9 g/t Ag, 0.53 g/t Au (2% Zn cut-off) Bobbys Pond (1.1% CuEq ) - 100% BRL Indicated - 1.1 Mt @ 4.6% Zn, 0.4% Pb, 0.9% Cu, 16.6 g/t Ag, 0.2 g/t Au 20 km Inferred- 1.2 Mt @ 3.8% Zn, 0.3% Pb, 1.0% Cu, 11.0 g/t Ag & 0.06 g/t Au Tulks Hill – 100% BRL Indicated-0.43 Mt @ 4.0% Zn, 1.6% Pb, 0.9% Duck Pond Mine (past prod.) Cu, 35.1 g/t Ag, 1.2 g/t Au (1.1% CuEq) 5.0Mt @ 4.4%Zn, 2.7%Cu, 53g/t Ag, 0.6 g/t Au (Teck, 2007-15) Lemarchant 100% NZC (4% ZnEq. cut-off) Indicated - 2.42 Mt @ 6.2% Zn, 1.6% Pb, 0.7% Cu, 64.0 g/t Ag, 1.22 g/t Au Inferred – 0.56 Mt @ 4.7% Zn, 1.1% Pb, 0.5% Cu, 44.7 g/t Ag, 1.1 g/t Au Long Lake 100% NZC (using a 7.0% zinc equiv. cut-off) Map Area Indicated – 0.41 Mt @ 7.8% Zn, 1.6% Pb, 1.0% Cu, 49 g/t Ag, 0.57 g/t Au Inferred – 0.08 Mt @ 5.8% Zn, 1.2% Pb, 0.7% Cu, 34 g/t Ag, 0.48 g/t Au Boomerang Deposits 100% NZC (1% Zn cut-off) Indicated - 1.36 Mt @ 7.1% Zn, 3.0% Pb, 0.5% Cu, 110.4 g/t Ag, 1.7 g/t Au Inferred - 0.28 Mt @ 6.7% Zn, 2.9% Pb, 0.4% Cu, 96.5 g/t Ag, 1.3 g/t Au Cambro-Ord. Volc. Domino (Inferred) – 0.41 Mt @ 6.3% Zn, 2.8% Pb, 0.4% Cu, 94 g/t Ag, 0.6 g/t Au 6 Hurricane (Inferred) – 0.06 Mt @ 13.4% Zn, 7.0% Pb, 1.2% Cu, 159 g/t Ag, 0.9 g/t Au
Buchans Resources Buchans District (undeveloped resources) - District* hosts >1.75 billion lbs 1,762 Zn, >600 million lbs Pb, & ~300 1,800 million lbs Cu 1,600 - Lundberg* hosts >580 million lbs Zn, 245 million lbs Pb & >158 1,179 1,400 million lbs Cu - 2017 bench-scale metallurgical 1,200 Millions study demonstrated ore from 5 of the district’s main deposits 1,000 602 could be processed using a sequential flow sheet in a central 800 milling facility 583 294 357 600 400 136 District 245 Total 200 158 VLSG 0 (all NI 43-101) Lundberg (largest & most advanced) Zn (lbs) Pb (lbs) * combined Indicated & Inferred resources Cu (lbs) Deposits: Lundberg, Bobbys, Daniels, Tulks Hill, Boomerang, Lemarchant, Long Lake 7 Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be considered for estimation of mineral reserves, and there is no certainty that inferred mineral resources will be realized.
Buchans Resources BUCHANS Lundberg Deposit sulphide prospects deposits (incl. past producers- projected to surface) favourable alteration Buchans camp rocks Outline of Buchans Camp rocks after GSC 2016 Lundberg (near surface - stockwork) Red Indian Lake below Lucky Strike (massive sulphides) 5 km Asarco mined 16.2 Mt 14.5% Zn, 7.6% Pb, 1.3% Cu, 1.37 g/t Au & 126 g/t Ag (1928-1984) 8
Buchans Resources VMS DEPOSITS (Buchans model) In a VMS setting …. in situ ore massive sulphides (25-28% Zn-Pb-Cu) (48% of ore mined) Lucky Strike stockwork ore sulphide-rich vein networks (2-6% Zn-Pb-Cu) (not mined) transported ore Lundberg debris flow deposits (16-22% Zn-Pb-Cu) (52% of ore mined) Schematic block diagram of the MacLean channel, Lucky Strike area, illustrating hydrothermal vents along synvolcanic faults, diatreme activity 9 associated with subvolcanic plutonic body, ore bearing slumps and debris flows (modified after Kirkham and Thurlow, 1987; and Thurlow, 2001).
Buchans Resources Lundberg Project VMS Stockw ork Deposit Surrounding Lucky Strike Deposit, Buchans Mine Lucky Strike (massive sulphides): Production 1928-1958 and 1972-1979 High grade deposit of 5.6 M tonnes averaging 18.4% Zn, 8.6% Pb, 1.6% Cu, 112 g/t Ag & 1.7 g/t Au 1 0
Buchans Resources LUNDBERG Bulk Tonnage Resource Mineralization 11
Buchans Resources LUNDBERG STOCKWORK DEPOSIT 2008 – 1 st resource estimate (100% Inferred) • 45 BRL holes (6,860 m) + 128 historic holes (~10,000 m) 2013 – 2 nd resource estimate (84.5 % indicated) Lundberg • 51 BRL holes (7,235 m) H-3356 – 37 m 2018 - drilled 17 holes (2,205 m) upgrade resource 113 BRL + 128 historic holes - grand total: 241 holes / ~26,300 m • 12
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