St. John’s – Newfoundland – Vulcan Minerals Inc. (“the Company” TSX-V: VUL) announces that it has been advised by Nortec Ventures Corp (Nortec) that Nortec is planning both an airborne geophysical survey and a drilling program on the TL Nickel property this late summer-fall subject to equipment availability. Nortec optioned the TL Nickel property from Vulcan and has the right to earn a 51% working interest by spending $1,500,000 on the property by March 2009 and making yearly option payments. At Vulcan’s option, Nortec may earn a larger working interest with additional expenditures and payments. The TL nickel property is located in Labrador approximately 50 km northwest of the world-class Voisey’s Bay nickel-copper-cobalt mine.
Previous work on the property in the mid 1990’s discovered a near surface magmatic style of nickel-copper-mineralization. Mineralization was intermittently delineated over 1.2 kilometres with significant drill intersections including hole 3-2 where 23.7 metres grading 0.47% nickel, 0.16% copper were encountered including 5.2 metres of 1.15% nickel, 0.42% copper, 0.11 grams/tonne palladium and 0.25 grams/tonne platinum.
In 2005, Nortec had a best intersection (5.5–13.8 meter depth) of 8.3 metres of 0.84% nickel and 0.37% copper which included 6 metres of 1.09% nickel and 0.48% copper. A 0.7 meter section assayed 2.19% nickel and 0.35% copper. The 2005 program tested a variety of geophysical targets on the property with the best intersection located at the southern extension of the previously discovered mineralized system. This intrusive system requires extensive delineation along strike and at depth. Nortec proposes to initiate that delineation with its 2006 program as per its news release of June 6, 2007 announcing a $930,000 flow-through financing including funds allocated to the TL program. There has been a recent renewal of nickel exploration in Labrador related to the metal’s extremely strong price appreciation.
The Company proposes to grant 150,000 employee incentive stock options exercisable at $0.65 for a period of two years pursuant to certain vesting requirements and 200,000 directors’ incentive options exercisable at $0.65 for a period of five years pursuant to certain vesting periods, all subject to TSX Venture Exchange approval.
The Company has reserved for issuance pursuant to its stock option plan 3,875,713 options of which 2,616,250 are granted, including the grant herein.