Lorna Seatter - MINING NEWS - Tuesday, 13 May 2008
EMERGING base metals developer Vulcan Resources has intersected multiple high-grade metals at the Hietaharju prospect, part of Vulcan’s 95%-owned Kuhmo nickel project in eastern Finland.
Better drill results were 3.5m at 2.4% nickel, 1.6% copper, 5.5 grams per tonne palladium, 3.6gpt platinum from 58.05m, 3.8m at 2.2% nickel, 1% copper, 6.3gpt palladium, 2.2gpt platinum from 22.45m, and 22.1m at 1.8% nickel, 0.6% copper, 2gpt palladium and 0.8gpt platinum from 4.9m.
The highest grades for each commodity were 3.11% nickel, 3.55% copper, 21.7gpt palladium and 4.46gpt platinum.
In mid April, the emerging base metals producer finished a definitive feasibility study at its flagship Kylylahti copper, cobalt and nickel project, about 300km south of Kuhmo.
After reviewing the DFS results, Vulcan opted to begin immediate development at its flagship project saying Kylylahti was a robust financial proposition.
“While Kylylahti has garnered a lot of attention recently surrounding the completion of the definitive feasibility study, Kuhmo seems determined to share the spotlight,” Vulcan managing director Dr Alistair Cowden said.
“The confirmation and extension of shallow high-grade nickel, copper, platinum, palladium sulphides in infill drilling at Hietaharju is significant,” he added.
Cowden said infill drilling over the past five months at Vaara, Peura-aho and Hietaharju had led to the generation of new geological models that show the potential for higher grades and lower tonnage resource estimates compared to prior estimates.
“Furthermore, metallurgical testwork has generated smelter-grade concentrates from the Peura-aho and Hietaharju deposits,” he said.
Vulcan has identified several exploration targets over 150km within Kuhmo, with the Hietaharju project remaining open at depth and to the north.
The Kuhmo project has global resources containing 38,000 tonnes nickel metal, and more than 80,000oz in platinum and palladium.
Vulcan shares remained unchanged at 33c in early morning trade.
VCN Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
