Vulcan Minerals Inc

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Vulcan Minerals Inc. – Acquires Colchester Copper-Gold Project in Newfoundland

News Release

May 12, 2016

Vulcan Minerals Inc. – Acquires Colchester Copper-Gold Project in Newfoundland

St. John’s Newfoundland and Labrador - Vulcan Minerals Inc. (“the Company” - “Vulcan” TSX-V: VUL) announces that it has acquired, by staking, the Colchester copper-gold property in north-central Newfoundland. The property consists of 98 claims over 2,500 hectares covering four past producing historic mines, namely the Colchester, West Colchester, McNeilly and Old English. These mines operated in the late 1800’s and are believed to have produced a combined 1,000 tons of handpicked ore from underground shafts and drifts. The information regarding the property is taken from historic assessment reports filed by past explorers with the Government of Newfoundland and Labrador Department of Natural Resources and the Mineral Occurrence Data System (MODS).

 In 1967, G.H. Gibbs, a mining engineer with Colchester Mines Ltd. evaluated the previous work on the property and provided a resource calculation (Preliminary Report, Green Bay Properties, Newfoundland File 12H/09/0113). He concluded, based on diamond drilling, that the known workings contained 1,000,000 tons (including 20% dilution) of copper grading 1.3% over a strike length of 305 metres and from surface to a depth of 183 metres. Gibbs calculated this tonnage on individual grid sections, assuming a maximum lateral influence of 15 m and a maximum vertical influence of 23 m per drillhole; he applied a specific gravity of 3.5 and a cut-off grade of 0.85% Cu. This estimate used data from 37 drillholes. This is an historic reference that is not compliant with National instrument 43-101 and cannot be relied upon according to modern reporting standards. The company has just recently staked the claims and has not yet accessed the property to verify any of the historic results referenced herein. As such the Company is not treating the historical estimate as a current resource or reserve. Rather, it is used to demonstrate the potential for the property to contain significant copper mineralization.

 Follow-up drilling in 1971 by Cerro Mining Company encountered the following highlights, presented below in Table 1.

 

Hole

True Thickness (m)

Vertical Depth (m)*

Cu (%)

COL-30

7.01

27.43

2.3

COL-48

24.38

262.13

1.02

COL-3

5.49

48.77

2.6

COL-16

4.57

12.19

1.13

COL-16

5.18

32.00

1.7

COL-16

21.03

112.78

0.95

COL-21

28.96

35.05

1.2

COL-49

33.53

152.40

0.8

COL-35

13.11

62.48

1.06

COL-37

7.32

39.62

1.3

COL-41

31.39

102.11

1.05

COL-51

12.19

68.58

1.44

COL-51

19.81

146.30

1.04

* vertical depth is measured using Colchester Pond as '0' datum

Table 1. Highlights from historical drilling by M.J. Boylen Engineering and Cerro Mining (1963-1970).

More recent drilling in 2004-2005 by another operator confirmed the significant distribution of copper on the property as well as the potential for gold. Several gold occurrences are documented, including the Alpha showing, which occurs within the immediate vicinity of the Colchester Main Zone, where trench sampling by previous explorers encountered 5.9 g/t Au, 2.05% Cu, 1.18% Zn and 30.7 g/t Ag over 3.0 m and also 18.9 g/t Au, 4.7% Cu, 0.42% Zn and 36.49 g/t Ag over 1.5 m. Follow-up drilling of the Alpha showing by the same explorers confirmed subsurface continuity of base and precious metal mineralization, as summarized in Table 2.

 

Hole

From (m)

To (m)

Interval (m)

Approx. True thickness (m)

Au (g/t)

Cu (%)

Zn (%)

CC-03-02

67.10

69.55

2.45

1.73

0.20

2.25

n/a

CC-03-02

74.20

80.05

5.85

4.14

3.91

2.81

n/a

CC-03-03

22.35

36.85

14.50

n/a

1.90

0.05

0.97

Including

30.85

33.40

2.55

n/a

9.80

0.14

3.69

CC-03-03

61.55

62.65

1.10

n/a

1.60

1.82

0.02

CC-03-05

28.65

30.57

1.92

n/a

3.30

1.89

0.08

Table 2. Historical drilling highlights from the Alpha showing.

The property geology consists of a Cambro-Ordovician assemblage of island arc volcanic and plutonic rocks metamorphosed to greenschist facies that has been interpreted by previous workers to represent an ophiolite sequence. The mineralization identified to date is hosted in chlorite schist zones within mafic to intermediate volcanic and volcaniclastic units, occurring as stockwork to locally semi-massive to massive sulfides with associated gold; historical mapping and drilling suggests secondary porphyry-style mineralization and alteration may overprint the deposit. Company geologists have inspected some diamond drill core from 1963 to 1971 drilling programs (M.J. Boylen Engineering and Cerro) at a government core facility and has confirmed the style of mineralization.

The Company is in the process of compiling all available information towards designing an exploration program. Based on preliminary research, it appears most of the previous work focussed on the known mineral workings while much of the property remains underexplored. The company anticipates a summer program of geophysics and mapping towards identifying drill targets.

The property is accessible by paved road approximately 25 kilometres off the Trans Canada Highway. The area is serviced by an airport at Deer Lake 110 kilometres to the southwest. Please refer to our webpage www.vulcanminerals.ca for location and general geology maps.

Patrick J. Laracy, P. Geo, President, and Patrick Collins, P. Geo, are qualified persons responsible for the contents of this news release as defined in National Instrument 43-101.

 

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release may contain certain forward-looking statements. Actual events or results may differ from the Company’s expectations. Certain risk factors beyond the Company’s control may affect the actual results achieved.  Accordingly, readers are advised not to place undue reliance on forward-looking information. Except by law, the Company undertakes no obligation to publicly update or revise forward-looking information.

For information please contact:

Patrick J. Laracy, President

(709) 754-3186

info@vulcanminerals.ca   

www.vulcanminerals.ca