Canada

Lundberg Project

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Categories

Overview

Mine TypeOpen Pit
StagePreliminary Economic Assessment
Commodities
  • Zinc
  • Lead
  • Copper
  • Silver
  • Gold
Mining Method
  • Truck & Shovel / Loader
Mine Life... Lock
SnapshotOn March 1, 2019, Buchans reported an updated pit-constrained Mineral Resource Estimate for Lundberg containing more than 1.25 billion pounds Zinc Equivalent, with 97.8% of the Mineral Resources in the Indicated category.

The principal recommendation arising from this Mineral Resource Estimate is that an updated assessment of the deposit’s economic potential be completed as the next phase of project evaluation. This could take the form of a new Preliminary Economic Assessment or an internal economic study leading to a decision to proceed directly to a PFS assessment.

Owners

SourceSource
CompanyInterestOwnership
Canterra Minerals Corp. 100 % Indirect
On December 20, 2023, Buchans Resources Limited (the Company) completed the previously announced sale of the Company’s portfolio of critical and precious metals projects in central Newfoundland to Canterra Minerals Corporation.

The principal properties to be acquired are the Buchans Mine Property (hosting the Lundberg deposit), the Bobby’s Pond Property (hosting the Bobby’s Pond deposit), the Tulks Hill Property (hosting the Tulks Hill deposit), and the Daniel’s Pond Property (hosting the Daniel’s Pond deposit).

Deposit type

  • VMS
  • Breccia pipe / Stockwork

Summary:

The Buchans area deposits and showings are classified as being of volcanogenic massive sulphide (VMS) association, primarily comprised of base-metal sulphides and barite and show strong similarities to the Kuroko style deposits of Japan (Thurlow, 1981).

The Buchans deposits include three distinct but genetically related deposit types, and occur as in situ sulphides, mechanically transported sulphides, and stockwork sulphides (Thurlow and Swanson, 1981).

The Lundberg Deposit as defined in this Report is comprised of two mineralized zones, these being the Lundberg zone and the Engine House zone, both of which are hosted by felsic to intermediate volcanic rocks of the Buchans Group and lie within the NE-SW trending Central Mobile Belt (CMB) of Central Newfoundland (Williams, 1979; Kean et al., 1981; Swinden, 1990, Williams 1995). The Buchans Group is a Lower Ordovician volcanic sequence that ranges in composition from basalt to rhyolite and shows a relative increase in its felsic component with height in the stratigraphic section (Thurlow and Swanson, 1981). Five main Zn-Pb-Cu-Ag-Au deposits were historically mined at Buchans and all occur in association with the same felsic stratigraphic horizon within the Buchans Group (Thurlow and Swanson, 1981). The Lundberg Deposit surrounds the former Lucky Strike mine site, where ASARCO operated a near-surface underground and glory hole mining operation until mine closure in 1984. The Lundberg Deposit is mainly comprised of stockwork mineralization surrounding and lying below the Lucky Strike orebody but includes some massive sulphide mineralization that was not mined by former operations.

Stockwork mineralization at Buchans consists of a network of sulphide veins and veinlets that cut strongly altered and sulphidized host rocks. The largest known concentration of stockwork and disseminated mineralization at Buchans is the Lundberg zone that underlies the Lucky Strike deposit. The stockwork mineralization has a higher ratio of pyrite to base metal sulphides than the in situ sulphide zones and is typified by presence of fine to coarse grained pyrite with lesser amounts of chalcopyrite, sphalerite, galena and barite (Thurlow and Swanson, 1981). This mineralization occurs within felsic volcanic rocks of the Buchans River Formation below the Lucky Strike deposit and extends into the underlying intermediate to mafic Ski Hill Formation (Jambor, 1987). The Lundberg zone stockwork mineralization comes to surface on the eastern edge of the zone and forms an elongate, wedge-shaped body that is 250 m deep on the western end. The highest concentration of sulphide mineralization lies in close proximity to the previously mined Lucky Strike massive sulphide zone and mineralization is more diffuse away from the zone. A second zone of stockwork mineralization is associated with the Engine House zone, which is located immediately south of the Lucky Strike deposit, and this zone has a higher proportion of chalcopyrite to other base metal sulphides.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

Milling equipment has not been reported.

Processing

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Production

Production Costs

CommodityUnitsEstimated
Assumed price Lead USD 1.1 / lb *  USD
Assumed price Zinc USD 1.22 / lb *  USD
Assumed price Copper USD 3.62 / lb *  USD
Assumed price Silver USD 22.7 / oz *  USD
* According to 2011 study / presentation.

Operating Costs

Currency2024
OP mining costs ($/t mined) CAD 2.27 *  CAD
OP mining costs ($/t milled) CAD  ....  Subscribe
Processing costs ($/t milled) CAD  ....  Subscribe
* According to 2011 study.

Project Costs

MetricsUnitsLOM Total
Total CapEx $M CAD  ......  Subscribe
OP OpEx $M CAD  ......  Subscribe
Total OpEx $M CAD  ......  Subscribe
Gross revenue (LOM) $M CAD  ......  Subscribe
Pre-tax NPV @ 10% $M CAD  ......  Subscribe
Pre-tax NPV @ 8% $M CAD  ......  Subscribe
Pre-tax IRR, %  ......  Subscribe

Heavy Mobile Equipment

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Personnel

Mine Management

Job TitleNamePhoneProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Dec 11, 2023
....................... Subscription required ....................... Subscription required ........... Subscription required Subscription required Dec 11, 2023
....................... Subscription required ....................... Subscription required ........... Subscription required Nov 29, 2023

Total WorkforceYear
...... Subscription required 2011

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