Vulcan Minerals Inc.
TSX VENTURE : VUL

Vulcan Minerals Inc.

August 26, 2010 12:22 ET

Vulcan Minerals Inc.: Labrador Seismic Program Underway

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - Aug. 26, 2010) - Vulcan Minerals Inc. ("the Company") (TSX VENTURE:VUL) is pleased to announce it has been advised by the operator, Investcan Energy Corporation, (Investcan) that a seismic acquisition program has commenced on exploration licence 1107 (EL1107) in the Hopedale basin offshore Labrador. The program consists of approximately 3000 line kilometres of 2D seismic and will extend over the entire 236,000 hectares of EL1107. 

As announced on July 27, 2010, Vulcan has entered into an earn-in agreement with Investcan in regards to EL1107. Pursuant to that agreement Investcan has the right to earn a 20% working interest from Vulcan in EL1107 by solely funding 100% of the costs of a 2D seismic survey on the licence to a limit of $8.2 million on or before December 01, 2010. The current seismic program is being conducted pursuant to that agreement. Assuming Investcan earns its 20% working interest Vulcan will retain a 30% working interest in EL1107.

EL1107 was issued on November 15, 2008 to Vulcan and Investcan on a 50/50 working interest basis with a work commitment bid of $9,601,000. The current program and ongoing evaluation work should satisfy the bulk of the work bid and provide for the return of the corresponding portion of the $2,400,250 security deposit posted by Investcan. The companies have formed a joint venture to explore and add value to the licence towards attracting a drilling partner. An exploration licence confers the right to explore for petroleum for an initial term of six years (Period I) with a possible additional period of three years (Period II) if a well is drilled on the licence in Period I. EL1107 is situated proximal to and on trend between the Bjarni-North Bjarni discoveries (approximately 3.1 trillion cubic feet of natural gas) to the northwest and the Gudrid discovery (approximately 924 billion cubic feet of natural gas) to the southeast. The gas quantities of the Bjarni-North Bjarni and Gudrid discoveries are recoverable resources as published by the Canada-Newfoundland and Labrador Offshore Petroleum Board. 

Investcan is a private corporation indirectly owned by SCDM, a private company based in Paris, France. SCDM is one of the largest shareholders of the Bouygues Group at 18.6% as of December 31, 2009 (www.bouygues.com). Vulcan and Investcan currently have a joint venture for exploration of the Bay St. George basin in western Newfoundland. Completion and testing of two wildcat wells on that project are currently underway.

Vulcan is a diversified junior exploration company focused on petroleum exploration in the under-explored western Newfoundland and Labrador areas and also holds mineral interests in areas strategic to its operations in Newfoundland and Labrador.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

There can be no assurance that forward-looking information will prove to be accurate. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

Shares Issued: 54,461,241

Contact Information