February 22, 2021
Vulcan Minerals Inc. – Commences Airborne VTEM geophysical survey on its Newfoundland Nickel-Copper and Gold project
St. John’s, Newfoundland and Labrador – Vulcan Minerals Inc. (“the Company” – “Vulcan” TSX-V: VUL), announces that Geotech Ltd has commenced surveying the Red Cross Lake property in central Newfoundland with its airborne VTEM plus time-domain EM system. The project will consist of approximately 350 line kilometers on a 100 meter line spacing. The purpose of the survey is twofold. Firstly, to test for the geophysical signature of a magmatic nickel-copper deposit. The Red Cross property covers a trans-tensional zone within a flexure on the Valentine Lake fault containing a mafic/ultramafic intrusion. This property has never been flown with a modern time domain electromagnetic system having deep penetration and discerning conductive capability.
The property’s nickel potential was recognized by Falconbridge in 2005 who carried out a cursory shallow drill program to test electromagnetic conductors derived from ground surveys. Disseminated nickel and copper were intersected but there is no record of follow up by Falconbridge. Mr. Patrick Collins P. Geo., former exploration manager of the Company, completed a Master of Science thesis on the Red Cross Intrusion in 2007. He identified several factors that highlight the potential for nickel sulphide development including evidence of nickel depletion (in olivine) in certain units of the intrusion. This may indicate that an immiscible sulfide melt could have preferentially extracted this nickel, which is a critical process for forming nickel sulphide mineralization. Inspection and sampling of historical drill core indicates sulfide textures and characteristics favorable for magmatic sulphide concentration.
Secondly, the geophysical survey will help delineate the detailed structure and geology of the property which immediately offsets Marathon Gold Corp’s (Marathon) property to the west. The Marathon property currently contains over 4 million ounces of gold in the global resource category along the Valentine Lake fault (Marathon news release PFS April 06 2020). The Red Cross property is favorably located for cross structures cutting the Valentine Lake fault and extending eastward. These cross structures have the potential to provide trapping mechanisms for gold deposition. Angular float was discovered on the property by Falconbridge in 2005 which assayed 5.8 grams gold per tonne. The Company carried out a geochemical survey in 2018 in the vicinity of the reported float occurrence and located a gold in soil anomaly up to 73 parts per billion. Results from the VTEM survey will direct further exploration in 2021. Please view the presentation at www.vulcanminerals.ca for maps relating to this project.
The Company also reports that its subsidiary Red Moon Resources Inc. has announced that it is carrying out a private placement to raise up to $3.5 million dollars. The funds will be used to complete a feasibility study on its salt deposit in western Newfoundland and for working capital. The Company owns approximately 50% of the outstanding shares of Red Moon, a company focussed on the development of industrial minerals in Newfoundland and Labrador.
Patrick J. Laracy, P.Geo, President is the qualified person responsible for the contents of this news release as defined in National Instrument 43-101.
For information please contact:
Patrick J. Laracy, P.Geo.
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.