Base metals miner Vulcan Resources Ltd has signed an agreement with Helsinki-based talc miner Mondo Minerals OY to mine and explore on its tenements for a 1 euro per tonne royalty.
According to an annoucement released by Vulcan today, the companies will also cooperate on infrastructure, water resources and other matters relating to the development of the Kylylahti Copper Project.
The full text of a company announcement is pasted below
Vulcan Resources Ltd today announced that it has agreed with Mondo Minerals, a privately owned talc miner and processor, to exchange mineral rights on adjoining tenements and to cooperate on infrastructure, water resources and other matters relating to the development of the Kylylahti Copper Project.
In consideration for a €1/tonne royalty, Vulcan will have the right to mine and explore for base metals on Mondo's Mining Licence. This licence contains the shallow continuation of the Kylylahti deposit north of Vulcan's Resource. The Resources in the Mondo licence adds to the Kylylahti Resource, bringing the total Resource to 7.45 million tonnes.
The shallow Resource on Mondo's licence is being incorporated into the mine plan for the Definitive Feasibility Study that is currently underway and managed by SNC-Lavalin Australia. Mondo have a reciprocal right to mine talc on Vulcan's Mining Licence 3593 for a €1/tonne royalty and to access Vulcan's mine infrastructure and services.
Vulcan's Managing Director, Dr Alistair Cowden, said "It is significant that the Mondo licence includes large areas of the Kylylahti geological complex which are only sparsely drill tested."
A review of historical data has generated areas of immediate interest, particularly the western margin of the complex, which show potential to host mineralisation.
"We are delighted at the cooperation with Mondo," Dr Cowden said. "Vulcan has secured additional Resources, exploration potential and important infrastructure access and water resources that is key to the Kylylahti mine development. This is another important milestone on the path to development and production."
The Resources on Mondo's lease were estimated as part of the updated Resource Estimate released to the ASX on 19 September 2006 and the estimation methodology is given in the appendix.
