6 METRES OF MASSIVE SULPHIDES IN FIRST DRILLHOLE AS DRILLING COMMENCES AT KUHMO NICKEL PROJECT (FINLAND) Vulcan Resources Limited (“Vulcan”) (ASX: VCN) has commenced a 2,000 metre, 40 hole programme of diamond drilling at its Kuhmo nickel sulphide project (“Kuhmo”) in eastern Finland. The first hole completed at the Peura-aho prospect intersected 6 metres of massive sulphide with visible pentlandite (Ni) and chalcopyrite (Cu) at 55 metres depth, significantly thicker than expectations. Massive sulphides in prior drilling generally grade from 2.5-3.0% nickel, approximately 1% copper and 2-4 g/t Pt+Pd+Au. The drilling at Kuhmo will test the shallow, high-grade portions of each of the 5 deposits and adjacent targets. It will permit the estimation of shallow high-grade Resources, provide further samples for metallurgical testwork and allow the optimisation of pits. Baseline environmental studies have been completed. The Kuhmo project is Vulcan’s second advanced project and is located approximately 300 kilometres to the north of Vulcan’s Kylylahti copper-cobalt project which is nearing completion of a Definitive Feasibility Study. The nickel sulphide deposits occur over a 150 kilometre north-south distance (Figures 1 and 2). Significantly, the mineralisation identified to date is similar in style to the well known komatiite-hosted deposits in Western Australia. Nickel mineralisation in excess of 1% nickel either outcrops or is under a few metres of shallow till cover at each of the deposits. The deposits have been drilled in part by Outokumpu, the Geological Survey of Finland (“GTK”) and Vulcan. Best intersections reported from the deposits prior to commencement of this drilling programme are: �� Peura-aho – 1.8 metres at 2.7% Ni, 1.0% Cu 3.9 g/t Pt+Pd+Au, highest value of 3.64% Ni �� Hietaharju – 17.9 metres at 1.3% Ni, 0.61% Cu, 2.14 g/t Pt+Pd+Au, highest value of 3.63% Ni �� Vaara – 39 metres at 0.6% Ni, highest value of 1.99% Ni �� Sika-aho – 7 metres at 1.26% Ni, highest value of 3.25% Ni �� Arola – highest value of 5.72% Ni Resources have been reported under the JORC code for three deposits; Vaara, Peura-aho and Hietaharju and are 7.67Mt @ 0.46% Ni, 0.1% Cu, 0.2 g/t Pt and 0.3 g/t Pd for 30,000 tonnes of contained nickel (Table 1). In addition, a Global Resource of 1.7 million tonnes at 0.5% nickel for two additional deposits was publicly reported by Outokumpu and the GTK but was not classified under the JORC Code (Table 1). Vulcan’s Managing Director, Dr Alistair Cowden, said the Kuhmo project nickel Resources, extensive anomalies and prospective komatiites represent unrecognised value in Vulcan and rank highly with any nickel exploration project in Australia. “Vulcan is considering various options for the exploitation of its nickel Resources, including stand alone milling, trucking to a custom mill or trucking to the Kylylahti Project.”
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