Buchans Minerals engages Wardrop Engineering to complete preliminary mine
plan for Lundberg & Engine House resources

    
    Trading Symbol: BMC - TSX-V
    Shares Outstanding: 112,127,490
    

WINDSOR, NS, Aug. 23 /CNW/ - Buchans Minerals Corporation (BMC-TSX-V) ("Buchans Minerals" or the "Company") is pleased to announce that it has engaged Wardrop Engineering Inc., A Tetra Tech Company ("Wardrop") to complete a preliminary mine plan for the Company's 100% owned Lundberg and Engine House resources in Buchans, Newfoundland, Canada.

The preliminary mine plan will initially optimize open pit mine shells for each of the four resource thresholds identified in the resource table below. Each of the four open pit scenarios will be evaluated to produce a final pit design, optimum tonnage through-puts and mining schedules (with grades and stripping ratios) for a mill located at Lundberg. As part of the mining plan, both open pit and underground mining methods will be considered.

In conjunction with the bench scale metallurgical tests currently ongoing at SGS laboratories (anticipated to be completed by the end of September), the preliminary mining plan will be evaluated with a view to potentially proceeding with a national instrument 43-101 compliant Preliminary Economic Assessment ("PEA") thereafter. Should the company decide to proceed with the PEA, the optimum production schedule and tonnage throughputs determined by the preliminary mine plan and the metallurgical results will be incorporated into a total mine design that will include the processing plant design, site development, capital costs, operating costs and a cash flow model determining the internal rate of return and net present value of the project under current and projected economic conditions.

Warren MacLeod, President and CEO of Buchans Minerals stated that "Both the preliminary mining plan and the metallurgical tests are important building blocks towards determining the economic potential of the Lundberg and Engine House resources and we look forward to reviewing their outcome."

    
    Qualified Person:
    -----------------
    

Paul Moore, M.Sc., P.Geo., (NL), Buchans Mineral's Vice President of Exploration, is acting as Qualified Person in compliance with National Instrument 43-101 with respect to this release and has reviewed the contents for accuracy.

    
    About Buchans Minerals:
    -----------------------
    

Buchans Minerals is an Atlantic Canada based resource company that is primarily focused on exploring and developing mineral properties in the historic Buchans mining camp in central Newfoundland, Canada.

    
    Forward Looking Statements
    --------------------------
    

Certain information 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 the Company believes the expectations reflected in such forward-looking statements are reasonable, they can give no assurance that such expectations will prove to have been correct. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond their control, and that future events and results may vary substantially from what the Company currently foresees. The Company's forward looking statements are expressly qualified in their entirety by this cautionary statement.

    
    Lundberg & Engine House Resource Estimates:
    -------------------------------------------

    -------------------------------------------------------------------------
    Table 1. Lundberg Inferred Resource Estimate - 1% Cu Pb Zn
     Combined Threshold - Effective November 3, 2008              Percentage
    -----------------------------------------------------------  of Resource
    Combined                              Combi-                   Tonnage
    Cu Pb Zn                               ned                      within
    Thres-                                Cu Pb                    100 m of
    hold %     Tonnes    Zn %  Pb %  Cu %  Zn %  Ag g/t  Au g/t    Surface
    -------------------------------------------------------------------------
    1.00    20,700,000   1.68  0.72  0.38  2.78   5.92    0.07      57.91%
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Table 2. Lundberg Inferred Resource Estimate - Zn %
     Threshold - Effective November 3, 2008                       Percentage
    -----------------------------------------------------------  of Resource
                                          Combi-                   Tonnage
    Zn %                                   ned                      within
    Thres-                                Cu Pb                    100 m of
    hold       Tonnes    Zn %  Pb %  Cu %  Zn %  Ag g/t  Au g/t    Surface
    -------------------------------------------------------------------------
    1.00    15,690,000   1.96  0.83  0.38  3.17   6.57    0.08      61.79%
    -------------------------------------------------------------------------
    1.50     9,300,000   2.46  1.03  0.43  3.92   8.26    0.10      66.40%
    -------------------------------------------------------------------------
    2.00     5,340,000   3.02  1.25  0.49  4.76  10.27    0.12      70.62%
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Table 3. Engine House Inferred Resource Estimate - 1% Cu
     Pb Zn Combined Threshold - November 3, 2008                  Percentage
    -----------------------------------------------------------  of Resource
    Combined                              Combi-                   Tonnage
    Cu Pb Zn                               ned                      within
    Thres-                                Cu Pb                    100 m of
    hold %     Tonnes    Zn %  Pb %  Cu %  Zn %  Ag g/t  Au g/t    Surface
    -------------------------------------------------------------------------
    1.00     1,120,000   2.04  0.85  0.82  3.71   9.79    0.12      64.79%
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Table 4. Engine House Inferred Resource Estimate - Zn %
     Threshold - November 3, 2008                                 Percentage
    -----------------------------------------------------------  of Resource
                                          Combi-                   Tonnage
    Zn %                                   ned                      within
    Thres-                                Cu Pb                    100 m of
    hold       Tonnes    Zn %  Pb %  Cu %  Zn %  Ag g/t  Au g/t    Surface
    -------------------------------------------------------------------------
    1.00       890,000   2.37  0.95  0.96  4.28  11.29    0.15      58.73%
    -------------------------------------------------------------------------
    1.50       600,000   2.89   1.1  1.05  5.04  12.17    0.16      60.56%
    -------------------------------------------------------------------------
    2.00       370,000   3.62  1.27  0.97  5.86  12.71    0.19      60.40%
    -------------------------------------------------------------------------
    

This value does not reflect any economic parameter, as an Inferred Mineral Resource Estimate does not imply minability. Tables adapted from: Technical Report on the Mineral Resource Estimate for the Lundberg and Engine House deposits Buchans Area, Newfoundland, Canada. Prepared for Buchans Minerals Corporation by Peter C. Webster, B.Sc., P.Geo., P. James F. Barr, B.Sc., Mercator Geological Services Limited. Effective Date November 3, 2008.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

%SEDAR: 00008176E

SOURCE Buchans Minerals Corp.

For further information: For further information: Buchans Minerals Corporation: Warren MacLeod, President & CEO, Ph: (902) 472-3520, Windsor, Nova Scotia, warren@buchansminerals.com, www.buchansminerals.com; Investor Relations: The Howard Group Inc.: Jeff Walker/Dave Burwell, Toll Free: 1-888-221-0915, Info@howardgroupinc.com, www.howardgroupinc.com

Organization Profile

Buchans Minerals Corp.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890