Buchans Minerals Corp. (TSX: V.BMC, Stock Forum) and Minco plc said a recently completed drilling program on the Lundberg and Engine House base metal deposits in Buchans, central Newfoundland have yielded encouraging results.
According to the Buchans Minerals press release, a three month drilling program of 58 holes totaling 8,184 metres of drilling was completed in October.
Assay results for 51 holes are now available, representing 79% of the program's assays.
New assays from this northwest area include hole H-3475 that intersected 134.8 metres averaging 4.96% combined base metals, including 56.8 metres averaging 8.33% combined base metals.
Furthermore, hole H-3473, also drilled on this corridor, intersected 155.7 metres averaging 1.59% combined base metals, including 55.0 metres averaging 1.99% combined base metals.
Currently, Minco has the right to earn a 51% interest in the company's base metal properties in central Newfoundland by spending $8 million to advance the Lundberg deposit to final feasibility over four years and further explore the company's extensive mineral properties in the region.
Minco currently holds approximately US$16 million in cash and is also evaluating a number of other investment opportunities in the minerals industry in North America and Europe.
Buchans is a resource company with a focus on base metals.
On Friday, Buchans’ was up 33% and was trading at $0.04 a share. The company has a market cap of $6.7 million, based on 166.3 million shares outstanding. The 52-week high and low was $0.12 and $0.025 respectively.