Buchans River announces beginning of 5,000 metre Lundberg drill program and completion of "Billiton targets" drill program



    Trading Symbol: BUV - TSX-V
    Shares Outstanding: 33,694,557

    HALIFAX, Jan. 10 /CNW/ - Buchans River Ltd. (BUV-TSX-V) ("Buchans River")
is pleased to provide an update on its exploration activities and near term
plans for its Buchans project in central Newfoundland, including the beginning
of drilling on the Lundberg zone, completion of drilling the Billiton targets,
plans to shortly begin drilling the West Clementine prospect and an update on
the Quantec Titan 24 survey soon to be completed.

    LUNDBERG DRILLING BEGINS
    ------------------------

    Buchans River is pleased to announce drilling has commenced on the
historic Lundberg zone with two drill rigs currently turning. The Lundberg
zone represents an historic resource estimate of approximately 13,000,000
short tons (11.8 million tonnes) averaging 1.83% zinc, 0.67% lead, 0.38%
copper, 5.5 g/t silver and trace gold(*), as disclosed in the Buchans River's
news release dated September 10, 2007). The estimate was prepared before
implementation of National Instrument 43-101 (NI 43-101) and is considered
historic in nature and cannot be relied upon. The resource estimate represents
an uncategorized resource estimate for a zone of mineralization peripheral to
the former Lucky Strike mine and prepared by the former operators of the
Buchans mines, American Smelting and Refining Company ("Asarco").
    Buchans River management believes Asarco's resource estimate for the
Lundberg zone warrants further exploration as a potential bulk tonnage
mineralization that has potential to be exploited by conventional open pit
mining. Furthermore, examination of historic Asarco data indicates portions of
the zone may host significantly higher grades. The current drill program is
expected to include 5,000 metres of drilling in approximately 33 holes from
which a new NI 43-101 compliant resource estimate will be derived. The program
will also be used to determine whether significant volumes of higher grade
material exist within the resource that may be exploited by both open pit and
underground means.

    
    (*) Trace gold is less than 0.01 ounces per ton gold (i.e. less than
        0.35 g/t gold), the lower detection limit of historical gold assays
        used in Asarco's resource estimate.

    BILLITON TARGETS DRILLING
    -------------------------

    The previously announced 4,000 metre drill program (news release dated
October 29, 2007) designed to test priority targets identified by former joint
venture partner, Billiton Resources Canada Inc. (Billiton) is now complete
with eight holes drilled totaling 4,050 metres. The program commenced in
October 2007 and was completed on January 8, 2008 using two drill rigs.
    Billiton spent $2.4 million exploring the property before selecting
targets as part of a detailed compilation and re-interpretation of the geology
hosting the former Buchans mines. These targets were documented in a report
authored by Billiton in May 2001 and targets drilled by Buchans River
represent the highest priority targets of a list of 126 Billiton proposed
holes, totaling 46,020 metres of drilling. Billiton selected the targets based
on their potential to host high-grade massive sulphide deposits similar in
size and grade to the former Lucky Strike mine. The Lucky Strike mine yielded
historical production totaling (xx)4.3 million tonnes averaging 18.36% Zn,
8.42% Pb, 1.67% Cu, 113 g/t Ag and 1.7 g/t Au. Shortly after compiling the
targets, Billiton abandoned all Newfoundland joint ventures and allowed their
option on the Buchans property to lapse without further drilling. Buchans
River's 2007 drill program tested eight of the targets. All cores have been
logged and sampled with assays expected by the end of January. Based on visual
inspection of the cores, no significant results are anticipated, although
anomalous base metal mineralization was intersected locally. Assay results
will be released upon receipt.

    TITAN 24 SURVEY UPDATE
    ----------------------

    Buchans River is also pleased to announce that the Quantec Titan 24 Survey
previously announced on September 17th, 2007 is currently 95% complete. The
program was temporarily suspended in December due to access problems on Sandy
Lake and is now expected to resume on January 12th to finish the original
proposed survey. In addition, a total of 8 additional line kilometres will be
surveyed over and above the originally proposed 94 line kilometres. The
additional survey area is located 300 metres north of the old McLean mine
which represented the deepest historic mine workings in Buchans and yielded
production totaling (xx)3.3 million tonnes averaging 13.50% Zn, 7.46% Pb,
1.13% Cu, 131.7 g/t Ag and 0.96 g/t Au from workings as deep as 1,100 metres
below surface. Due to the delayed completion of the survey, Buchans River now
anticipates receiving final results in early March which will be followed by
interpretation and planning of a follow-up drill program, likely to occur
during the spring or summer of 2008.
    The Titan 24 DCIP (Direct Current resistivity and Induced Polarization)
and MT (Magnetotelluric) survey extends over a 3.6 x 5.1 kilometre portion of
the Buchans Mining camp covering several past producing orebodies including
the former Lucky Strike, Rothermere and MacLean mines as well as the
undeveloped Clementine prospect. This area accounts for a large proportion of
the historical production at Buchans and hosts significant potential for
further discoveries both down plunge and adjacent to known deposits. While
historical geophysical surveys on Buchans may have explored to depths of up to
250 metres, Titan 24 DCIP and MT surveys are designed to locate deep sulphide
rich zones to depths of 500 to 750 metres by DCIP and more than 1,000 metres
by MT. Buchans River's management is optimistic the surveys will be effective
in exploring for new zinc-rich sulphide breccia deposits that characterize
much of the ore previously mined in this world-class mining camp.

    (xx) Past production figures for the Buchans Mines including the McLean
         and Lucky Strike mines were obtained from an article written by
         Neary, G.N., 1981: The Buchan Orebodies: 50 years of geology and
         mining. In: Swanson, E.A., Strong, D.F., and Thurlow, J.G.,
         (editors), "The Buchans Orebodies: Fifty Years of Geology and
         Mining". Geological Association of Canada Special Paper 22. Page 61,
         Table 2.
    

    OTHER PROGRAMS
    --------------

    Buchans River continues to plan additional drill programs for 2008 and
currently expects to complete a 2,200 metre program on its Clementine West
prospect during this winter drilling season. This program was originally
planned for 2007, but was postponed as winter conditions allow better access
to the target area. Details of the program were previously announced in a news
release dated June 13, 2007. The Clementine West prospect was discovered by
Buchans River and Billiton in 1999, and is located 3 kilometres southwest of
the Clementine prospect and 6 kilometres west of the former Lucky Strike mine.
The planned program will test for down-dip extensions to mineralization
previously delineated over a minimum strike length of 1.5 kilometres to depths
of 150 m. Previous drilling on the prospect intersected alteration and locally
baritic base metal sulphide mineralization characteristic of volcanogenic base
metal sulphide deposits mined at Buchans. Highlights include a section of
semi-massive sulphides assaying 3.97% zinc, 3.86% lead 0.03% copper (i.e.
7.83% zinc+lead) and 2.5 g/t gold over 1.0 metres, as well as broader sections
of stockwork and disseminated sulphides assaying up to 3.14% Zn+Pb over a core
length of 4.1 metres. The program will test the zone with 7 drill holes
testing to depths of 150 to 200 metres.
    In addition, Buchans River will continue to participate and maintain its
49% interest in the Tulks Hill joint venture with partners Prominex Resources
Corp.

    Corporate Reorganization
    -------------------------

    Buchans River also advises that the Board of Directors of each of Buchans
River and Royal Roads Corp. have asked management to consider whether the
assets and operations of Buchans River and Royal Roads Corp. can be combined
in such a manner that it would provide enhanced value to the shareholders of
both companies. Management intends to work with its legal, tax and other
advisors to examine the possibilities with a view to making a recommendation
to the independent members of the Boards of Buchans River and Royal Roads
Corp. before the end of March 31, 2008. Any possible combination would be
subject to receipt of all necessary regulatory and shareholder approvals.
There can be no assurances that any transaction may arise from these
considerations.

    Qualified Person
    ----------------

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

    About Buchans River
    -------------------

    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 Corp. (RRO - TSX-V) ("Royal Roads")
which currently owns 8,890,953 Buchans River shares. 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.

    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.
    For additional information on the Company's properties and activities,
please visit our web site at http://www.buchansriver.ca/.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.
    %SEDAR: 00004513E




For further information:

For further information: Warren G. MacLeod, President & CEO; David
Felderhof, Vice-President, Halifax, Nova Scotia, (902) 444-3637

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