Vulcan Resources Limited (VCN) –Bringing its First Outokumpu-Ore-Style (Cu-Co-Ni) Finnish Mine into Production by 2010

• Vulcan has made significant progress in the past 3 years’ since acquiring Outokumpu’s (OTK’s) base metal mine assets that were held by the Polar Mining subsidiary of Dragon Mining in two main regions of Finland, being the Outokumpu Cu-Co-Ni field and the Kuhmo-Suomussalmi Ni-Cu-PGE greenstone belt.
• At Kylylahti in the Outokumpu field, VCN expects to complete its BFS during MQ08 and using monies from its recent rights issue and placement, could possibly start the decline during JQ08, with production potentially from 2010 (~100 years since Outokumpu started its mine on the Keretti orebody & became a major company).
• The mineralisation at Kylylahti is classic Outokumpu-style with the recent deeper intersections of 5% to 9% Cu closely resembling Keretti-type ore visually, in content and in grade. Kylylahti also appears to consist of a series of lenses of ore, again similar to Outokumpu’s previous main mines at Keretti and Vuonos.
• One of the main advantages of having Outokumpu-type ore is that a proven metallurgical route of processing the ore is already known, which VCN are modifying using latest techniques to result in higher recoveries. The roaster site which is being used to treat Kylylahti ore in fact originally treated another Outokumpu-type ore, namely that from OTK’s 3rd mine in the district (Luikonlahti).
• The Kylylahti orebody has a 30% to 50% semi-massive higher grade keel that is to be mined for the first 7 to 10 years, followed by a lower grade disseminated hanging-wall for the mine’s probable life of 15 years to 20 years or so.