VCN - Vulcan Resources

[exgeo]

Vulcan is a Finland focussed exploration company. Barry Eldridge is part of the management team (formerly of Portman mining PMM). Undiluted market cap of A$23m at 23c/share. This seems cheap to me- compare to the market caps of DEG Degrey for example, with projects much less advanced than VCN.

Kylylahti Base Metals (VCN 100%)

Resource of 7.45 Mt @ 1.07% copper, 0.22% cobalt, 0.43% zinc, 0.22% nickel and 0.69 g/t gold (4.8% copper equivalent). The deposit is still open at depth. Company's current focus is on finishing the definitive feasibility study on this project by Q207, while continuing to extend the resource. The PFS recommended a 500Ktpa underground decline mine with total expected revenues of A$900 million over 10 years and net operating cashflow of A$430 million. Construction to start late 2007, production by 2009. Discussions with financers are under way now. All company resource estimates are by Snowden Mining Consultants.

Resource extension drilling
Drillhole 927B gave: 98.5m @ 1.15% Cu, 0.21% Co, 0.20% Ni, 0.79% Zn and 1.25 g/t Au (5.2% copper equivalent) for example.


Kuhmo Nickel-PGM (VCN 95%)

Vaara, Peura-aho and Hietaharju deposits within the Kuhmo Nickel Project in Eastern Finland. The Resources above a nickel equivalent grade of 0.3% nickel total: 7.6 Mt @ 0.4% nickel, 0.1% copper, 0.3% palladium and 0.2% platinum. The Resources contain almost 30,000 tonnes of nickel metal and over 120,000 ounces of PGE and demonstrate the capacity of the komatiites at Kuhmo to host substantive amounts of nickel metal. Up to 3% Ni, 2% Cu, 16 g/t PGE (from VCN drill core). In addition, there are a further nine drilled nickel sulphide occurrences within the project area which will be investigated over the next 12 months.

Other

Vulcan also has extensive vanadium, nickel-copper and platinum group element projects in northern Finland.

Corporate structure

99.7m shares, 34m options, giving an undiluted market cap of A$23m at 23c. A proposted AIM (London) listing has been shelved subsequent to the AIM pre-listing in 10/11/06.

 

[mahmoodf]

I agree. I hold shares in these puppies and will be looking to accumulate more. Very cheap compared to what resources they have, where they are located and who their main shareholders are.

 

[exgeo]

Vulcan Resources Limited has commenced a 2,000 metre, 40 hole programme of diamond drilling at its Kuhmo nickel sulphide project in eastern Finland. The first hole completed at the Peura-aho prospect intersected 6 metres of massive sulphide with visible pentlandite (Nickel mineral) and chalcopyrite (Copper mineral) at 55 metres depth, significantly thicker than expectations. Massive sulphides in prior drilling generally grade from 2.5-3.0% nickel, approximately 1% copper and 2-4 g/t Pt+Pd+Au.

 

[exgeo]

FIRST ASSAY RESULTS AT KUHMO NICKEL PROJECT EXCEED EXPECTATIONS

6 Metres at 2.2% Nickel, 4.1 g/t Palladium plus Platinum in Massive Sulphides Significant Thickness in Other Holes, Assays Pending.

This grade is nearly a platinum group metals mine grade in itself. Either the nickel or PGM are economically significant grades by themselves. Market cap. still only AUD $40m @ 40.5c (99m shares). Best of all, this company is not a daytrader's plaything (yet). Nobody knows about it. Just look at the number of posts in this thread when compared to Halcyon (HCY) for example. Further to go I'd say.

 

[mahmoodf]

Totally agree with you exgeo. And that's why I like this stock. It just moves up slow and steadily. Apart from today!

It seems to have been totally missed by the investing community. But I don't think that is going to last much longer.

 

[PETA 23]

Hi there
I am very new to share trading and while I love reading what you all have to say a lot goes way over my head - I brought VCN on the advice of a friend and see today that they have gone into a trading halt - do you think thats good? What is you opinion of this stock?
Cheers

 

[Sprinter79]

This was contained in their announcement yesterday:

--------------

The principal changes from the Resource Estimate announced in January 2007 are as follows:

*Contained copper metal and copper grades up 15% and 9% respectively

*Contained cobalt metal and cobalt grades up 15% and 9% respectively

*Contained nickel metal up 5%

*Tonnes up by 5%

*Confidence levels improved


Vulcan’s Managing Director, Dr Alistair Cowden, said “The Company has achieved a great deal since acquiring the Kylylahti deposit 30 months ago. Tonnage has more than doubled and the contained copper has increased 55% from Outokumpu’s prior estimates, cobalt 87%, nickel 150%, gold 80% and the total value of contained metal by 90%. Kylylahti remains open at depth and the Company will re-commence drilling in August. Geological understanding has improved and our target is to lift the Resource beyond 10 million tonnes with the aim of further extending mine life beyond 13 years and further improving grades.”

Vulcan expects that the Definitive Feasibility Study will be available for release to market in August. The study will present significant changes in the size and scope of the project since the Pre-Feasibility Study of November 2005.

------------------

All looks good for an increase in SP when they return to trading. I'm not sure why they asked for a trading halt, seeing as they've already released some strong data. I'm guessing that there is something bigger than what they announced yesterday

 

[Gspot]

I think it's got something to do with getting the backing to actually proceed with building the Kylylahti Plant.
Wouldn't sell in a hurry if price jumps, as the Kuhmo nickel results are due, and I think it could be worth waiting for?
Good times ahead! IMO.

 

[exgeo]

1) Director buys 250,000 shares on-market at 49.5c ($123,773 total cost) on June 29.

2) Peura-Aho Nickel sulphide deposit – Drilling results: Best intersection of 57.6m @ 1.3% Ni, 0.6% Cu. Highest individual assay values obtained are 3.2%Ni, 5.2% Cu, 5.7 g/t Pd, 2.7 g/t Pt.

3) Vulcan today announced a $49m capital raising and a decision to seek a co-listing on the Norwegian Stock Exchange (Oslo Bors).* Proceeds from the issue will be used to accelerate the development of the Kylylahti Copper-Cobalt-Nickel Project and Resource delineation and evaluation of the Kuhmo Nickel Project.


*(exgeo note: The company says that liquidity is much better on the Olso stock exchange when compared with AIM in London. I emailed the contact given in Norway and he confirmed that the Oslo stock exchange is an order-driven market - like Australia - not a market-maker system, with its attendant large spreads which act to deter trading).

 

[exgeo]

July 06, 2007

Vulcan Wisely Takes A Dual Listing On The Norwegian Stock Exchange


By Our Man In Oz



It’s been a tough couple of years for Vulcan Resources, the small Australian-based explorer with both feet fixed firmly in Finland. But, a quick glance at the company’s share price shows just how close Vulcan is to making the transition from explorer to mine developer. Since mid-March, when the base metal specialist was bouncing along the bottom at around A23 cents, it has since more than doubled. One immediate explanation for the rise is that speculators have discovered the high nickel content in Vulcan’s polymetallic projects. Another is that the more serious-minded investors are able to see through short-term metal market fluctuations to recognise that Vulcan is close to completing a feasibility study into the proposed development of the Kylylahti orebody, and is generating excellent drill results from a second.
A step along the development road was taken on Tuesday when Vulcan announced a fresh resource estimate for its Kylylahti copper/cobalt/nickel project. At 7.85 million tonnes of material rich in copper, cobalt, nickel, zinc and gold. Kylylahti is now known to hold a resource of 92,000 tonnes of copper, 18,850 tonnes of cobalt, 17,280 tonnes of nickel, 38,485 tonnes of zinc and 177,000 ounces of gold – and it’s still growing as exploration plunges deeper down strike.

The man charged with converting Kylylahti into a mine is Vulcan chief executive, Alistair Cowden. He told Minesite from his office in Perth that studies into how best to attack Kylylahti were “almost complete”. He said a definitive feasibility study was close to technical completion but he was still waiting on a financial analysis and final cost estimates. When released in the next few weeks the study is likely to reveal a significantly different project to that first proposed by Vulcan in pre-feasibility studies.

“The scope, size, capital and operating costs are completely different,” he said. “The main change is simply that the resource at Kylylahti has got a lot bigger as a result of our exploration. The plant we’ll need will be slightly bigger and the concentrate processing side of things will probably be different. What we really want to do is lift the resource above the 10 million tonne mark and extend the mine life beyond 13 years.”

The core issue for Cowden has been how to maximise the benefits of high metal prices. By spending more up front Vulcan expects to be able to achieve a number of benefits such as improve metal recovery. The end result is that Vulcan is likely to announce a higher capital cost than the pre-feasibility estimate of A$120 million. “It’ll be a bigger number for a bigger project,” he said.

So far, the market has been told that during its first seven years of production Kylylahti is expected to produce an average of 8000 tonnes of copper, 1000 tonnes of nickel, 1300 tonnes of cobalt, 2000 tonnes of zinc and 8000 ounces of gold. That cocktail of metals will emerge in two product streams. A copper/gold concentrate, and a nickel/cobalt concentrate. Customers are already lining up for the material with letters of intent signed with a number of smelters. Cowden said the timing of future events included the release of the definitive feasibility study in the next two months, leading to finalisation of financing, and a decision to mine by the end of the year, with first metal reaching the market in mid-2009.

On financing, Cowden described his talks as being with “all the usual suspects, and a few unusual ones”, but declined to name names. Since then, however, he has done the sensible thing and is raising A$49 million by a non-renounceable rights issue through Pareto Securities in Oslo and is taking a dual listing on the Norway Stock Exchange. A move which should be considered by anyone with assets in Scandinavia and, indeed in Europe, as the Oslo Bors is bouncing. On government approvals, three are required. One is an extension of the mining licence, then an approval for mine site (expected in October/November), and the final official piece of paper is the concentrate processing document expected early next year. No delays are expected because the mine and plant are in an existing mining region.

While Kylylahti trundles down the runway as Vulcan’s first mine a second project in Finland is rapidly taking shape in the background. Kuhmo, some 300 kilometres further to the north, continues to return attractive nickel assays. Best results from the latest drilling program included six metres of mineralisation grading 2.2 per cent nickel, 0.6 % copper, 0.14 % cobalt, plus 2.5 g/t palladium and 1.6 g/t platinum, starting at the relatively shallow depth of 55.3 metres. Other holes even closer to the surface returned similarly encouraging results with one hitting mineralisation at a depth of 16.5 metres which included 2.7 metres assaying 1.8 % nickel plus good copper and palladium grades.

“Kuhmo is shaping as something rather special,” says Cowden. “The nickel looks very interesting. It’s the potential for open-pittable, sulphide nickel which is attracting a lot of interest in what we’re doing in Finland. Add to that there’s a nickel smelter and refinery owned by Norilsk in Finland. Getting something up and running there quickly is possible and the results are continuing to come in.”

Cowden said the plan for Kuhmo was to report a fresh resource estimate, plus definitive metallurgy and undertake a scoping study this year, moving into a bankable study position by the end of the year. Limiting factors include a manpower shortage in tackling two projects at the same time, a hint that Vulcan might have to decide whether to pursue the “bird in the hand” in the form of copper-driven Kylylahti, or an emerging “bird in the bush” in the form of nickel-driven Kuhmo, or raise sufficient finance to do both. The decision now seems to have been made.

www.minesite.com

 

[hypnotic]

News out with Kuhmo Nickel Project drilling results!

Vulcan Resources Limited (“Vulcan”) today announced it has received further high-grade platinum and palladium results from the Hietaharju nickel sulphide deposit at the Kuhmo Nickel Project in Finland. Vulcan is actively exploring six identified nickel sulphide deposits and has reported results from Peura-aho and Hietaharju in the last few months, results are now available from the last four drillholes at Hietaharju.

Holes HIE-27 and 28 returned multiple zones of shallow sulphide mineralisation (12 metres below surface) including:

5 metres at 2.1% nickel, 1.5% copper, 3.7 g/t palladium and 2.7 g/t platinum

The high palladium and platinum values are very encouraging. Hietaharju clearly has potential to deliver platinum group element (PGE) grades which may contribute significantly to revenue from mining.

Looks like there is a bit of action from this news today. What i like about VCN is:
- Institutional Shareholders include Finnish Industry Investment Ltd (12.04%) & AGD Mining Limited (18.13%).
- And its got good cash to fund its programs. $7.1 Mil in the March Quarter
- Great prospect with Kuhmo and Kylylahti!!

exgeo are you still holding??

Cheers,

Hypnotic

 

[exgeo]

No, I sold mine a while ago, so sorry, can't hold your hand on this one- you're on your own. But noted that a director bought a large block at 49c a few months ago (see posting above, in this thread).

 

[Gspot]

"The Kylylahti Definitive Feasibility Study (“DFS”) is proceeding on schedule and is due for
completion at the end of March. Following review and sign off it is anticipated that the results of the
DFS will be released to market in early April." Quoted from 13 March announcement DRILL RESULTS INDICATE POTENTIAL FOR EXTENSION TO KYLYLAHTI DEPOSIT.
With $46 million cash in the bank and positive drill results continually coming from the Kumho Nickel project, I think this one should get back to it's old stomping ground of around 40c pretty soon.
That's what I'm hoping for, anyway. Appreciate some of the finer brains on this site giving their

 

[Gspot]

"The Kylylahti Definitive Feasibility Study (“DFS”) is proceeding on schedule and is due for
completion at the end of March. Following review and sign off it is anticipated that the results of the
DFS will be released to market in early April." Quoted from 13 March announcement DRILL RESULTS INDICATE POTENTIAL FOR EXTENSION TO KYLYLAHTI DEPOSIT.
With $46 million cash in the bank and positive drill results continually coming from the Kumho Nickel project, I think this one should get back to it's old stomping ground of around 40c pretty soon.
That's what I'm hoping for, anyway. Appreciate some of the finer brains on this site giving their

Well since this post Vulcan jumped 25% and are now in trading halt till Monday. The DFS for Kylylahti is ready to rock n roll, and going by the jump, here's hoping she's a goer.
Back to the 40c's come Monday...I hope?

 

[Gspot]

Vulcan now up to 42c. That's a 100% jump in 2 months.
Is anyone following this company, or am I holding all too myself.
Oh well, next stop 60c, i hope??

 

[Kipp]

Not sure if this qualifies as a breakout, on a day when the market is up 100pt might mean nothing... but I have been waiting in the last couple of weeks for it to close above 12c, and it finally has... on very solid volumes. Any TA's out there like to offer a more qualified opinion?

Recent action in URL can only be positive for the company (pending merger).

[disc stock held]

 

[exgeo]

From Minesite.com. Tim Treadgold writes for (among others) Shares Magazine..............................................................................

September 30, 2009

The Potential Of The Vulcan Resources/Universal Resources Merger Appears To Have Been Overlooked By Investors
Tim Treadgold

Can two stalled copper companies merge to create a viable business? Management at Vulcan Resources and Universal Resources certainly thinks so, shareholders are hoping so, but the wider investment jury called the stock market is out. Since announcing their engagement, and proposal to consecrate the marriage early next year, the share price of the Australian-based duo has been lacklustre, creeping fractionally higher despite copper being the flavour of the month on the ASX. In a curious way could be the reason why a lot of potential supporters of the Vulcan/Universal deal have been looking the other way rather than focussing on what is being created under their noses.
Rather than looking closely at the formation of the new Vulcan/Universal, with a million tonnes of copper in the ground, two fully planned and costed mines ready to go, and a more than useful range of by-products such as cobalt, nickel and gold, Australian investors been fascinated by the performance of five other copper stocks. Marengo has been a star thanks to its investment deal with billionaire speculator, George Soros. CuDeco has returned after three years in a self-imposed wilderness. Rex has made what appears to be a significant copper discovery in South Australia and Sandfire and Talisman have ridden the Doolgunna rocket in Western Australia.

Sandfire has been the star, so far, in the remarkable revival of copper as a leader of the Australian minerals sector. On Tuesday its shares hit a fresh all-time high of $3.99 before easing back to $3.36. As recently as March anyone could have loaded up with a fistful of Sandfire paper at A5 cents. Doolgunna, which is shaping as a major copper strike, is the driver, along with bullish broker assessments such as the latest from Bell Potter which reckons the stock could be on the way to a high of A$6. Talisman, with a promising tenement position alongside Doolgunna, has ridden in the wake of Talisman despite no drilling, yet, on its ground. On Monday, Talisman hit its all-time high of A82 cents, before slipping back to A69 cents.

The point of mentioning Sandfire, Talisman, Marengo, Rex and CuDeco before getting to the purpose of this story, Vulcan/Universal, should be obvious, too much background noise. In other words, no broker or major media outlet in Australia has taken a look at how a substantial copper-focussed company is being created by merging two complementary companies. Vulcan with its best assets in Finland, topped by the high-grade underground Kylylahti copper/cobalt/nickel project, and Universal with the big, low-grade open pit Roseby project in Queensland. Together, these two projects are expected to produce more than 36,000 tonnes of copper a year, plus by-products of gold, nickel, cobalt and zinc.

“We are on the way to creating a significant, copper-focussed, global mine development company,” said Vulcan chief executive and heir apparent to the merged entity, Alistair Cowden. “We’ve been looking for some time for opportunities to enhance our production potential and this is a compelling opportunity.” But, if that’s the case then how does he explain the insipid reaction of the market which has seen the shares prices of both companies remain relatively static. “You know the way the market works,” he said. “Someone putting out drilling results faced with the reality of building the thing gets three-times the valuation of someone who is actually trying to build something.

What Vulcan/Universal plan to build will almost certainly start with Kylylahti, a project with a price tag of US$170 million and a finalised feasibility study based on the production of two streams of concentrate, a copper/gold stream containing 8800 tonnes of copper and 11,900 ounces of gold, matched by a mixed stream comprising 1900 tonnes of cobalt, 1350 tonnes of nickel, 3800 tonnes of zinc and another 1700 tonnes of copper. Following close behind will be Roseby, a project costing A$213 million, processing five million tonnes of ore a year for the recovery of 26,000 tonnes of copper and 7500 ounces of gold.

Reams of paperwork, and months of jawboning, lie ahead before the deal is finalised, a result of the slow scheme of arrangement merger process chosen under which Universal technically acquires Vulcan by issuing 6.85 of its shares for each Vulcan share. When complete existing Vulcan shareholders will own 64 per cent of the merged company, Universal shareholders the remaining 36%. There will also be a whopping 1.55 billion shares on issue, leading to one-for-10 capital consolidation, with all of the preliminary organisational manoeuvres and ongoing work at the two prospective mines covered by a healthy cash balance of A$30 million.

The synergy benefits of bringing two copper projects under the one management team, with resulting cost savings, is one aspect to the Vulcan/Universal merger. Another is the changed market conditions, on both the share and commodities markets. It is exactly one year and one week since Vulcan was forced to pull the pin on Kylylahti, a direct consequence of the Lehman Brothers collapse, the copper price commencing a free fall, and capital markets entering a financial version of a deep freeze.

Times, prices, and plans change, which is why a nosy investor will find it interesting to start sniffing around the Vulcan/Universal deal because there might be more to come on the corporate side as well as mine development. Alistair, ever the prudent Scotsman (albeit one now proudly wearing a fine coating of Australian dust and Finnish snow) declines to talk about what’s cooking, but did offer a “watch this space” suggestion. We will.