St. John’s – Newfoundland – Vulcan Minerals Inc. (“the Company” TSX-V: VUL), announces that it has entered into an agreement with Commander Resources Ltd (Commander) in regards to the Company’s 38,350 hectare Bay St. George mineral property in Western Newfoundland. Commander may earn an 80% interest in certain designated metals consisting of base and precious metals and uranium by issuing Vulcan 500,000 shares, including 150,000 shares of Commander upon TSX Venture Exchange approval and completing $3.5 million in exploration work over a five-year period. Commander will also pay $50,700 cash to Vulcan upon Exchange approval to cover refundable staking deposits that Vulcan has posted with the provincial Department of Natural Resources. Any future refunds will be the property of Commander. The Company is pleased to enter into this agreement with Commander, a company that is actively and successfully exploring for uranium on its Heritage Project in southwest Newfoundland.
The Bay St. George Basin contains an upper sequence of non-marine continental sediments that provide potential for classic sandstone hosted uranium deposits. Vulcan’s claims cover areas with anomalous uranium values in lake-bottom geochemical samples. As well, they contain airborne radioactive anomalies from a 1975 survey flown at a very coarse 2 km line spacing grid. The basin drains an eastern flanking upland consisting of Lower Palaeozoic and Pre-Cambrian igneous rocks that are geochemically anomalous in uranium. Any uranium eroded from the upland has the potential to precipitate within the basin sediments. UCORE Uranium Inc. recently located uranium mineralization along the margins of the basin with channel samples up to 1.84% U3O8 over 1 meter. As well, the geologic formations within the basin are similar to formations within the Deer Lake basin located approximately 50 kilometers to the north. In the Deer Lake Basin, a number of uranium showings have recently been worked by Spruce Ridge Resources, JNR Resources, Altius Minerals and Cameco Corp. Uranium mineralization in unsourced boulders has been reported grading up to 10% U3O8 while bedrock samples have been reported with up to 3.7% U3O8. The Company feels the Bay St. George property has similar potential for uranium discoveries. The property overlies, in part, the petroleum permits owned by Vulcan. The extensive seismic, magnetic and geologic database generated from the Company’s petroleum exploration will be used to assist in the exploration for uranium. The Commander agreement does not provide Commander with any rights to the Company’s petroleum interests.