In Brief: Vulcan proceeds with Finland mine

WEST Perth-based Vulcan Resources Ltd has announced that it is proceeding with the Kylylahti Mine in Finland. The company’s primary focus is the development of the 800,000 tonne per annum project located in eastern Finland, which has a resource of 7.85 million tonnes grading 1.17 per cent copper. A definitive feasibility study (DFS) has been completed on a 10-year underground mine and concentrator producing coppergold and zinc-cobalt-nickel concentrate for sale. All environmental and mining permits for the project are in place and production is planned to commence in late 2010. The project is 95 per cent owned by Vulcan and has a resource containing 38,000t of nickel metal and more than 80,000 ounces of platinum and palladium. The DFS has confirmed the economic and technical viability of the project, which has an after tax net present value of $US149 million, a life of mine pre tax cash flow of $US618 million, and a capital cost of $US170 million. Vulcan chairman Barry Eldridge said he was delighted with the outcome of the DFS given the global escalation in costs. “The Kylylahti mine development will mark the revitalising of the Outokumpu copper field some 100 years after the discoveries in 1910,” he said. Mr Eldridge said Vulcan expected to generate 150 jobs during construction and 200 permanent jobs.