Junior adds ground at Buchans

Vancouver — Buchans River (BUV-V) has expanded its land position by some 37 sq. km in the historical Buchans mining camp of central Newfoundland.

The junior added 20 sq. km by inking a deal with GT Exploration. The property includes the past producing Rothermere and MacLean mines, the Sandfill prospect, which hosts a reported 68,000 tonnes grading 10% zinc, 4.7% lead, 1.5% copper, 86 grams silver and 0.34 grams gold per tonne, and the Hag zone. The price tag comes in at 800,000 shares and 800,000 warrants. The warrants are exercisable at 45 for the first year and 50 for the second. The Hag zone marks a high priority target for the company. Previous drilling on prospect returned 14.4% zinc, 7.6% lead, 0.4% copper, 253 grams silver and 5.6 grams gold over 0.4 metre at a down-hole depth of 298 metres.

Buchans River also picked up 17 sq. km of new ground from Newfoundland Mining & Exploration for 1.2 million shares and 1.2 million warrants. The warrants are exercisable at the same price as the first deal. This property host the Clementine West target, which was discovered in 1999 when a drill hole cut 7.2% combined zinc-lead over 0.9 metre.

Both GT Exploration and Newfoundland Mining & Exploration are non-arms length companies with Buchans River, as all the companies share common directors.

In late September, Billiton Resources Canada, a subsidiary of BHP-Billiton (BHP-N) terminated its 122-sq.-km Buchans River joint venture, citing that Buchans-type targets no longer meet their corporate objectives.

Buchans River has now consolidated some 159 sq. km of prospective ground in the Buchans area.