NEWS RELEASE VULCAN RESOURCES PRESENTS TO THE ... · Finland. Attached is a copy of his...
Transcript of NEWS RELEASE VULCAN RESOURCES PRESENTS TO THE ... · Finland. Attached is a copy of his...
ABN 60 100 072 624 Ground Floor, 1 Altona Street, West Perth WA 6005 Telephone: +61 8 9485 2929 www.vulcanresources.com.au
Australian Securities Exchange: VCN, Frankfurt Stock Exchange: VUA (WKN: A0HHEF), Norwegian OTC: VCNR VRL1491D-MC
NEWS RELEASE
29 November 2007
VULCAN RESOURCES PRESENTS TO THE FENNOSCANDIAN EXPLORATION AND MINING CONFERENCE
Base metal explorer, Vulcan Resources (ASX: VCN, FSE: VUA, WKN: A0HHEF, Norwegian OTC: VCNR) is pleased to announce that Managing Director, Dr Alistair Cowden, presented a corporate overview at the Fennoscandian Exploration and Mining Conference yesterday in Rovaniemi, Finland. Attached is a copy of his presentation. The presentation is also available on the Company’s website www.vulcanresources.com.au.
- ENDS - Please direct enquiries to: Alistair Cowden Managing Director Tel: +61 8 9485 2929 Email: [email protected]
Charlotte Knudsen Crux Communications Norway Tel: +47 (97) 56 19 59
Sven Olsson AXINO AG Germany Tel: +49 (0) 711- 25 35 92 46
Ann Nahajski Porter Novelli Tel: +61 8 9386 1233 Mobile: +61 400 205 433
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© 2007 Copyright 2007 Vulcan Resources Limited FEM Presentation 28 November 20071
Fennoscandian Exploration Mining ConferenceVulcan Resources Limited
Alistair Cowden, Managing Director28 November 2007
ASX: VCN ▪ FSE: VUA ▪ OTC: VCNR
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Agenda
1. Company Overview
2. Kylylahti Project
3. Kuhmo Nickel Project
4. Summary
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Two base metal projects in Finland
Kylylahti copper-cobalt-nickel project –feasibility in progress
Kuhmo Nickel – defining sulphide nickel Resources
Malmikumpu Bar, Outokumpu
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Background
Sept 2002 - Listed ASX
Dec 2004 - Acquired Finnish projects from Dragon Mining
Nov 2005 - Kylylahti Pre-Feasibility Study
Aug 2006 - First Kuhmo Nickel Resource estimates
July 2007 - A$50m raising
Aug 2007 - Frankfurt & Oslo OTC listingFor
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226m shares, 22.6m options
European Institutions 45%
US$100m market capitalisation
US$46m cash
Full Oslo listing pending
A European Focussed CompanyF
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Experienced Mining Board
Barry EldridgeChairmanMining Engineer, director Cleveland Cliffs, ex CEO Portman, ex Norths Ltd
Alistair CowdenManaging DirectorGeologist, ex WMC, Delta, Archaean Gold
Heikki SolinNon-Executive Director, Chairman of Finnish SubsidiariesLawyer, ex Business Development Manager Outokumpu
Michael BlakistonNon-Executive DirectorLawyer, director Platinum Australia
Fiona HarrisNon-Executive DirectorAccountant, ex director Alinta, PortmanF
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Internationally Experienced Management
Campbell BairdGeneral Manager, OperationsMining Engineer, ex WMC, Norths, SRK
John BrodziakProject Manager, KylylahtiEngineer, ex Rio Tinto, Portman
Jarmo VesantoManager, FinlandEx Outokumpu
Nick WalkerExploration ManagerGeologist, Ex Outokumpu
Seppo TuovinenMining Manager, FinlandMining Engineer, ex Outokumpu
Mel CampbellChief Financial OfficerAccountant, ex Goldfields, Auriongold
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Finland - Low Sovereign Risk
Highly ranked Euro zone economy
Government support, no royalties
Fe, Cu, Zn & Co smelters & refineries
Vibrant industry of miners, explorers & equipment manufacturersF
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Agenda
1. Company Overview
2. Kylylahti Project
3. Kuhmo Nickel Project
4. Summary
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Kylylahti Copper-Cobalt-Nickel Project
View from Outokumpu towards Kylylahti
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Project Outline
Underground decline mine, 650,000tpa, 13 year life
Long hole open stoping with paste fill
Concentrator produces Cu-Au & Ni-Co-Zn concentrates
Concentrate processing plant produces Ni-Co hydroxide, Zn & Cu sulphates Drilling at KylylahtiF
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3-Dimensional view of the Kylylahti orebodyF
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Outokumpu Field
Excellent infrastructure
Active mining area
2 billion lbs Cu, 1m oz Au produced (1914-1995)
Two satellite deposits
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Cross Section
7.85Mt @ 1.17% Cu, 0.24% Co, 0.22% Ni, 0.49% Zn, 0.7 g/t Au (JORC)
Downdip extensions (1km plus?)
Adjacent gold & nickel intersections, geophysical & geochemical anomalies
Satellite Resources & targets
Drilling in progress
Growing ResourceF
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Pyrrhotite – pyrite – chalcopyrite – sphalerite – cobaltiteGrades up to 11.70% Cu, 1.67% Co, 1.55% Ni, 11.7% Zn, 13.7 g/t Au
Simple Sulphide OrePolished drill core
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World class mining conditions
Keretti Mine, 1940
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Processing
Conventional milling & flotation concentrator
Nickel-cobalt concentrate trucked 100km to new concentrate processing plant
Copper-gold concentrate sold to European smelters
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Annual value of metal in concentrates
* September 2007 Prices: copper US$3.40/lb, cobalt US$30.00/lb, nickel US$14.00/lb, gold US$780/oz, zinc US$1.25/lb
Value (US$) *
Cobalt 1,480 tCopper 8,000 tNickel 820 tGold 8,750 ozZinc 3,000 t
$ 97.9 m$ 59.7 m$ 25.2 m$ 9.5 m$ 6.0 m$198.3 m
Annual Production
pa
Metal
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Feasibility Study - PartnersF
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Feasibility Study - Status
Mining lease granted
Environmental permits pending
Independent Resource estimate complete
Mine design & schedule complete Aerial view of mine siteF
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Feasibility Study (cont)
Metallurgical testwork complete
Concentrator & infrastructure design complete
Concentrate processing plant design gives high capital costs
Study extended to Q1 2008 for optimisation & reviewF
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Agenda
1. Company Overview
2. Kylylahti Project
3. Kuhmo Nickel Project
4. Summary
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Outcropping 2.5% nickel massivesulphides discovered 1964
Peura-aho deposit
Kuhmo Nickel Project
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Project Outline
37,000t of nickel metal in 5 shallow Resources
12 drilled komatiite hosted nickel sulphide occurrences
Concept of central processing plant, multiple open pits
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Analogous to Australia
Abundant targets, under-explored, well understood geological model
150km long greenstone belt
Australian experience reinforces that sulphides lead to mine discoveriesF
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2007 Drilling Campaign
Peura-aho – high grade shallow massive sulphides
Hietaharju – massive sulphides and high PGE
Vaara – thick low grade intercepts
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2007 Drilling Results
Hietaharju: 5m from 18m:- 2.1% Ni - 1.5% Cu- 3.7 g/t Pd - 2.7 g/t Pt
Peura-aho: 58m from surface- 1.3% Ni - 0.6% Cu- 1.0 g/t Pd - 0.2 g/t Pt
Vaara: 43m from 30m:- 0.43% Ni - 0.1 g/t Pt- 0.2 g/t Pd
Peura-aho
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1.5% Ni outcrop discovered 10 years ago
Vaara DepositF
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Next Steps
Drill out shallow open pitsMetallurgical testworkEnvironmental baseline studiesPit optimisationsBrownfield & regional exploration
Vulcan winter drilling
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Agenda
1. Company Overview
2. Kylylahti Project
3. Kuhmo Nickel Project
4. Summary
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Vulcan dominates 3 metal provinces in Finland
Feasibility - Outokumpu copper camp
Resource Definition - Kuhmo nickel
Exploration - Iron-vanadium-titanium & nickel in layered intrusions
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SummaryFinland has mining expertise & low risk
Unique commodity exposure – Ni, Cu, Co, Pt, Pd
Development & exploration exposure
US$4.3bn in ground value
Exploration, development & operations experience
A$50m cash, 58% institutional ownershipFor
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© 2007 Copyright 2007 Vulcan Resources Limited FEM Presentation 28 November 200733 Kuopio Ice Marathon
Developing Base Metals in Finland
Vulcan Resources LimitedWebsite: www.vulcanresources.com.au
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Appendices
1. Kylylahti Project
2. Kuhmo Nickel Project
3. Metal Markets
4. Exploration Projects
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Kylylahti History Discovered by Outokumpu1984
Never developed – prices & change in corporate focus
Acquired by VulcanDec 2004
Pre-Feasibility StudyNov 2005
Definitive Feasibility StudyIn progressF
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Project Location & InfrastructureF
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Regional GeologyF
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Local GeologyF
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Schematic Cross Section
Complex polyphase deformation
Upper Amphibolite metamorphism for 200Ma
No modern analogue
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Altered ultramafic rock: quartz-tremolite-sulphide myloniteF
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Nickel & gold not always assayed
Large & Growing Resource Base
Tonnes Cu Co Ni Zn Au(Mt) (%) (%) (%) (%) (g/t)
Kylylahti 7.9 1.2 0.24 0.22 0.5 0.7Saramaki 3.4 0.7 0.10 0.10 0.8 -Vuonos 0.8 1.8 0.14 - 1.3 -TOTAL 12.2 1.1 0.19 - 0.6 -
250m lbs contained copper
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How Big will Kylylahti be?
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Kylylahti mine surface layout plan showing details of concentrator & tailings
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Appendices
1. Kylylahti Project
2. Kuhmo Nickel Project
3. Metal Markets
4. Exploration Projects
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Finland - Nickel IndustryNickel smelter at Harjavalta owned/operated by New Boliden
Nickel refinery at Harjavalta (Norilsk), cobalt refinery at Kokkola (OMG)
Hitura nickel mine & mill owned by Belvedere (Toronto)
Many former producing nickel mines, typically low grade
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Project HistoryOutcrops discovered in 1960’s-1970’s
Limited exploration- Different style from known Finnish deposits- Metal prices- No large deposits found
Outokumpu/GTK exploration in 1990’s- Discovered Vaara, looked at PGE’s- Outokumpu withdrew from mining
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Suomussalmi BeltFive known occurrences
Three open-pittable resources drilled to date
Peura-aho, Hietaharju –Collurabbie style (high Cu & PGE
Kauniinlampi & Vaara – Mt Keith Cosmos styleF
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Mineral ResourcesTonnes
(Mt)Location Ni
(%)Cu(%)
Co(%)
Pt(%)
Pd(%)
Vaara1 6.10 0.35 0.03 0.01 0.15 0.10Peura-aho1 0.60 0.51 0.22 0.03 0.18 0.40Hietaharju1 1.00 0.53 0.28 0.03 0.19 0.26Sika-aho2 0.17 0.66 0.01 n/a n/a n/aArola3 1.50 0.46 n/a n/a n/a n/a
Total 9.38 0.40 contained nickel 37,765 tonnes1 Indicated and Inferred Resources. For a breakdown see Resource estimate by Snowden & Associates in ASX Release 23 November 2006.2 GTK, 1998 Polygonal Resource Estimate, available in Public domain but not reported under JORC Code. Vulcan review classified as Inferred Resource.3 Outokumpu, Polygonal Resource Estimate, available in Public domain but not reported under JORC Code. Vulcan review classified as Inferred ResourceFor
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Appendices
1. Kylylahti Project
2. Kuhmo Nickel Project
3. Metal Markets
4. Exploration Projects
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Copper
Forecasts range from US$2.00-$3.40/lb to 2010
20 month average US$3.20/lb (US$7,000/t)
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5 Year Cobalt (BHPB)
$0.00
$10.00
$20.00
$30.00
2002 2003 2004 2005 2006 2007
Cobalt
20 year average ($17/lb)
CRU forecast a floor price of US$16.00/lb (US$35,000/t)
4 year average US$18.88/lb (US$41,600/t)
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Demand forecast to double by 2015- Market of 50,000tpa growing at 4-5,000tpa, a
Ravensthorpe every 4 months
Cobalt MarketsNew generation metal- ipods, alternative fuels and hybrid cars
Structural change in market- Stockpiles gone, Glencore, Xstrata, OMG & China
Supply growth reliant on Congo & laterites
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Nickel
Forecasts range from US$7.00-$14.00/lb to 2010
Base formed at US$14.00/lb (US$31,000/t)
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Copper-gold concentrate- Letters of Intent with New Boliden & Norddeutchse
Offtake & Financing
Nickel-cobalt hydroxide- Discussions with European & other refineries
underway
Financing- Discussions with banks, offtakers, partners
underway, UK Financial advisor engagedFor
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Appendices
1. Kylylahti Project
2. Kuhmo Nickel Project
3. Metal Markets
4. Exploration Projects
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Layered Intrusion Exploration -Vanadium, PGE & NickelA pipeline of opportunity
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Vanadium, Nickel & PGEMustavaara & Otanmäki produced 10% of world vanadium from 1940’s-1980’s. Vulcan has pegged old mines or extensions
Potential for 300Mt plus deposits with worlds best vanadium concentrate grade
Potential large shallow low-grade nickel-copper-PGE depositF
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Haukiaho Nickel Project
Location of the Haukiaho project area within the KLIC, with an aeromagnetic image shown in the subset window in the top right
Haukiaho project scale geology and existing drill holes (from GTK)For
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The Mustavaara concentration plant & factory buildings
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Distribution of magnetite gabbro in the Koillismaa intrusion on magnetic image
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First priority targets at Syöte
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Concentration tests of drill core, SyöteAverages for magnetite gabbro intersections
FromHole ID Length Fe Ti TiO2 V V2O5
Pöllävaara R9B 8.10 96.70 60.03 3.45 5.76 0.86 1.53
Soidinvaara R1 2.50 86.60 58.71 4.98 8.31 0.88 1.57
Soidinvaara R2 10.00 126.20 59.00 4.59 7.66 0.96 1.72
Soidinvaara R3 59.90 122.10 55.95 5.34 8.92 0.85 1.51
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Magnetic ground survey image of the Akanvaara intrusion
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Akanvaara intrusionMagnetite gabbro intersections, calculated by J LahtinenOre grade V mineralisation, cut off ca 0.1% V (0.179% V2O5)
From(metres)
Hole ID Length(metres)
V2O5(%)
Cuppm
FeOTot
Sppm
TiO2(%)
R303 5.70 58.30 0.26 701 18.40 938 2.95R303 180.00 198.87 0.23 539 15.33 683 1.64R304 122.00 40.00 0.25 629 18.90 1,262 3.10R307 10.00 68.33 0.30 604 16.97 403 1.94R406 44.00 19.69 0.51 779 22.17 663 2.93
Three concentrates produced: Magnetite (2.8% V2O5), Sulphide (12% Cu, 1.4g/t Au, 53g/t Ag), Ilmenite (TiO2 ?)
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