St. John’s Newfoundland and Labrador – Vulcan Minerals Inc. (the “Company”“Vulcan” TSX-V:VUL) announces that Fjordland Exploration Inc. (“Fjordland”) has commenced drilling on its South Voisey’s Bay project as described in a recent news release by Fjordland, a portion of which is quoted as follows:
“Fjordland Exploration Inc. and project partners Commander Resources Ltd. and privately owned High Power Exploration Inc. have begun the 2018 phase 1 drill program at the company’s South Voisey’s Bay project, located in Labrador, Canada. The work is being financed by High Power Exploration, which also is providing technical support. The initial program will comprise 1,300 metres of core drilling in six to eight holes, as well as property-wide geological mapping and additional target assessment.
The SVB property is in central Labrador, about 80 kilometres south of Vale’s Voisey’s Bay nickel-cobalt mine and covers the majority of the Pants Lake gabbro complex. The Pants Lake complex consists of rocks with alteration and nickel mineralization styles consistent with high-nickel prospectivity. This program is a continuation of the initial drill test undertaken in 2017 and will target conductors derived from reprocessing of historical geophysical data. The geological model for Voisey’s Bay-style deposits emphasizes the strong role of structure in controlling magma emplacement, as well as control of sulphide accumulation.
A high-resolution satellite-based radar survey completed earlier this year provides a new structural data set that was utilized in interpreting and ranking the numerous modelled conductors. Areas to be drill tested in the upcoming program include a follow-up target at Sandy in the vicinity drilled in 2017, as well as targets at the south end of the project area referred to as the South Gabbro and an area north of the Sandy target with two conductors, referred to as the West and the East Bowl.”
Fjordland has permitted several areas for drilling. These are shown on the attached map in relation to Vulcan’s claims. The Sandy and South Gabbro drill hole locations occur either on or adjacent to Vulcan’s mineral claims which have been optioned to Fjordland. The decision as to which of these permitted locations will be ultimately drilled and in what order will await further news from Fjordland.
Patrick Laracy, President, commented “We commend Fjordland on its perseverance and commitment to the South Voisey’s Bay Project and wish them success on their latest drill program. High-grade nickel sulphide deposits provide a source of nickel which is favored in lithium ion battery technology. The projected growth in battery usage is expected to underpin an increase in demand for such sulphide nickel deposits. Any drilling success at Voisey’s Bay South may rekindle exploration in the larger Voisey’s Bay area. The Company has positioned itself with a recently acquired strategic land position approximately 12 km directly west of the Vosiey’s Bay mine and immediately adjacent to Vale’s (mine operator) claims. There has been significant staking activity west and south of Voisey’s Bay with approximately 3000 claims staked in the last few months. We are undertaking a review of all historic geophysical data on our claims which we interpret as being in a structurally favourable area for a Voisey’s Bay type deposit”
As previously reported, the Company has signed a binding Letter of Intent with Fjordland granting Fjordland the option to acquire a 65% working interest in 30 mineral claims located in the South Voisey’s area, Labrador. Under the terms of the agreement, Fjordland has the option to pay Vulcan $45,000 and incur $150,000 in exploration expenditures over a period of three years. If the option is exercised a joint venture will be formed whereby Vulcan will be carried for 100% of its joint venture expenditures on the claims until Fjordland earns its full interest from Commander Resources Ltd. (“Commander”) on surrounding contiguous lands or a minimum expenditure of $7 million on those lands.
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.
We seek Safe Harbor.
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, P.Geo. President