Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Buchans Resources has signed a collaboration agreement with Swedish base metals producer Boliden for its VMS property in Newfoundland, Canada. 


Under the agreement, Boliden will evaluate the Ontario-based exploration firm’s 252 sq. km property for the production of copper, lead and zinc, and pay $600,000 to Buchans for the up-keep of the area and towards ongoing exploration over the next year.


Both the firms will enter an exclusivity period until December 31, 2021, during which Boliden can negotiate terms of either an earn-in and option agreement or form a joint venture with Buchans after it completes the evaluation. 


The Buchans VMS deposit is estimated to hold 16.7mn mt of mineral ore grading 1.53pc zinc, 0.64pc lead, and 0.42pc copper. However, historical mining at the site by Asarco averaged grading of 18.4pc zinc, 8.6pc lead, and 1.6pc copper. Therefore, Buchans expects to discover higher ore grades as it continues to explore the area for mineralization.

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