VULCAN MINERALS INC. ANNOUNCES $1.25 MILLION OPTION OF ITS CARBONEAR PROPERTY
Stock Symbol: VUL:ASE
Shares issued: 8,574,500
February 21/97 close price: $0.58
ST. JOHN'S, Nfld., Feb. 24 /CNW/ - Vulcan Minerals Inc. (the company)
(ASE:VUL) is pleased to announce that its wholly owned subsidiary, Devonian Resources Inc., has granted Consolidated Viscount Resources Ltd. (Viscount) of Vancouver an option to acquire a 50% interest in the Carbonear base-metals projects. The terms of the option call for $350,000 in option payments over 4 years and staged minimum work commitments of $900,000.00 over 4 years for a total of $1,250,000. In the 1st year, Viscount has committed to spend a minimum of $150,000 on the property by drilling at least 8-10 targets for a total minimum program of 1000 metres. Viscount will operate the project through the option period. Further work by Viscount will be contingent on their assessment of the results of drilling.
The ``Carbonear'' property covers 214 claims containing approximately 33 square kilometres located 80 km. west of St. John's, Newfoundland. It is one of the most anomalous portions of Newfoundland in lake sediment, Zn, Pb, Cu, Ag and Au values. The property contains large gossan zones and was explored in the early 1900s by Cominco who conducted geochemical and airborne geophysical surveys. Several airborne magnetic anomalies and EM conductors were located but none were followed up by ground geophysical surveys and drilling. The
property has geophysical potential similar to the giant Sullivan base metal deposits of British Columbia (160,000,000 tonnes of 6% Lead, 6% Zinc and >2 oz/tonne Silver).The geochemically anomalous belt is underlain by mid to late Precambrian aged clastic sediments. It exceeds 6 kilometres in length and averages in excess of 1.5 kilometres in width. A thin veneer of glacial till covers most of the property but where outcrops are exposed, there are numerous occurrences of 2-4% pyrite and pyrrhotite in strataform layers. The highly anomalous geochemical values from sediments in stream samples range up to 3490 ppm(.349%) zinc (Zn) and 540 ppm lead (Pb); in soil samples 5000 ppm (.5%) Zn and 897 ppm Pb and from pond-bottom sediments 1530 ppm Zn and 253 ppm Pb. As well the property contains several unexplained pond sediment geochemical gold anomalies of up to 7.8 parts per billion (ppb) gold in an area where 90% of all sediment samples contained less than 2 ppb gold. During the 1996 field season Vulcan carried out approximately 40 line kilometres of magnetic, max-min electrical conductivity and VLF-EM surveying over two grid areas on the property. Several interesting conductors were identified, two of which exceed 1.5 kilometres in length and may be contiguous
across a large pond exceeding 1.5 kilometres in length. These conductors are co-incident with the most anomalous lead geochemical soil targets (up to 897 ppm lead in soils). An independent geophysical consultant has recommended at least nine drill targets in a first phase of drilling. The property covers a large and highly prospective terrain for large tonnage mineralization. The upcoming drill program will mark the first time this property has ever been drill tested.
Vulcan is pleased to have Viscount as a partner given its very successful exploration activity in Labrador following the Voisey's Bay discovery.
The Alberta Stock Exchange neither approves nor disapproves of the
information contained herein.
-30-
For further information: Mr. Patrick Laracy, President of Vulcan Minerals Inc., tel: (709) 754-3186, fax: (709) 754-3946 or
E-mail: laracy(at)cycor.ca |
