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Vulcan Resources Limited (“Vulcan”) (ASX: VCN) today announced the results of the Independent Resource Estimate carried out as part of its Definitive Feasibility Study on the Kylylahti copper-cobalt-nickel project in Finland.
Independent consultants, Quantitative Group, have advised a total Measured, Indicated and Inferred polymetallic Resource of 7.85 million tonnes at the grades specified in the table below. This Resource has an in-situ value of A$436/tonne at today’s prices1 or A$266/t at long term prices2.
Resource Classification
Tonnes
Cu
(%)
Co
(%)
Ni
(%)
Zn
(%)
Au
(g/t)
Measured
686,000
1.17
0.24
0.22
0.36 0.50
Indicated
6,973,000
1.17
0.24
0.22
0.50
0.72
Inferred
195,000
1.34
0.28
0.23
0.62
0.96
TOTAL
7,854,000
1.17
0.24
0.22
0.49
0.70
The Resource contains an estimated 92,000 tonnes of copper, 18,850 tonnes of cobalt, 17,280 tonnes of nickel, 38,485 tonnes of zinc and 177,000 ounces of gold. This estimate of contained metal has an in-situ value equal to A$3.4 billion at today’s metal prices.
The principal changes from the Resource Estimate announced in January 2007 are as follows:
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Contained copper metal and copper grades up 15% and 9% respectively
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Contained cobalt metal and cobalt grades up 15% and 9% respectively
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Contained nickel metal up 5%
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Tonnes up by 5%
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Confidence levels improved
Vulcan’s Managing Director, Dr Alistair Cowden, said “The Company has achieved a great deal since acquiring the Kylylahti deposit 30 months ago. Tonnage has more than doubled and the contained copper has increased 55% from Outokumpu’s prior estimates, cobalt 87%, nickel 150%, gold 80% and the total value of contained metal by 90%. Kylylahti remains open at depth and the Company will re-commence drilling in August. Geological understanding has improved and our target is to lift the Resource beyond 10 million tonnes with the aim of further extending mine life beyond 13 years and further improving grades.”
Vulcan expects that the Definitive Feasibility Study will be available for release to market in August. The study will present significant changes in the size and scope of the project since the Pre-Feasibility Study of November 2005.
- ENDS -
1 Prices 26 June 2007: US$3.41/lb copper, US$27.50/lb cobalt, US$17.96/lb nickel, US$1.61/lb zinc, US$650.00/oz gold. Exchange rate of A$1 = US$0.84
2 Long term average price assumptions: US$2.00/lb copper, US$16.00/lb cobalt, US$8.00/lb nickel, US$1.00/lb zinc, US$600.00/oz gold. Exchange rate of A$1 = US$0.75