Vulcan Minerals Proposed Private Placement and Update
Vulcan Minerals Inc. (the company, CDNX: VUL) is pleased to announce that
it proposes to carry out a non-brokered private placement of 1,400,000
shares @ 15 cents with a full warrant attached exercisable @ 20 cents for
one year. The proceeds of $210,000.00 will be used for general working
capital and western Newfoundland petroleum exploration. The placement is
subject to stock exchange approval.
Further to the news release of May 31, 2000 the acquisition of London
Resources Inc. has closed and Vulcan is now the 100% working interest
holder of Flat Bay petroleum permit 96-105 in Western Newfoundland subject
to royalties. The Flat Bay permit covers approximately 70,000 acres of the
under-explored northern Bay St. George Basin. In September 1999 Vulcan
drilled a test well 286 metres deep to investigate a shallow oil occurrence
in a previous mining hole. The well encountered significant oil shows over
a gross interval exceeding 100 metres, including live oil in the drilling
fluid. A seismically defined structure has been located approximately 4 km
from the test well and presents an excellent target for drilling. Vulcan
plans to drill this target, preferably with a multi-well program, in early
2001.
Onshore exploration activity in Western Newfoundland by other operators has
recently resumed on several fronts. A private American company has
commenced a multi-well drilling program in the permit immediately adjacent
to Vulcan's Flat Bay 96-105. The first well has commenced drilling within
100 meters of the boundary of permit 96-105. Furthermore a recent well in
the Deer Lake basin by a private Newfoundland company encountered
undisclosed amounts of natural gas and condensate. The operator is
preparing to re-enter and deepen the well. The Deer Lake Basin contains
rocks of similar age to the Flat Bay permit area and is approximately 100
km north of Flat Bay. Finally, the Port au Port discovery originally made
by Hunt Oil approximately 45 km to the west of the Flat Bay Permit is
slated to go into production in early 2001 and will usher in a new era for
petroleum production in Western Newfoundland. Vulcan also owns a 100%
interest in three offshore licences in Western Newfoundland covering
approximately 1.2 million acres. The company is continuing its efforts to
advance exploration on its Western Newfoundland properties by seeking joint
ventures and financing.
As well, the company has staked 20 claims in Labrador covering a
nickel/copper prospect in the Nain Plutonic Suite, the igneous intrusion
which contains the Voisey Bay deposit. Previous drilling on the prospect in
1995 encountered several encouraging nickel/copper grades such as 23.7
metres of 0.47 % nickel and 0.16% copper including 6.31 metres of 1.07%
nickel and 0.37 % copper. Compilation work is ongoing and further details
will be released upon its completion. cheers |
