Volcanic Metals Corp.
TSX VENTURE : VOL

Volcanic Metals Corp.

September 21, 2010 15:59 ET

Volcanic Metals Corp.: Property Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 21, 2010) - Volcanic Metals Corp. (TSX VENTURE:VOL) ("Volcanic") is pleased to announce the following update on the exploration program at its Gjegjan Property located in Albania.

Volcanic has completed the compilation and interpretation of all available historic data from the Albanian Geological Survey, as well as 85% of its high-resolution Mag/EM airborne geophysical survey on the 200km2 North and South blocks. Interpretation of the geophysical data has identified several geophysical anomalies of potential sulphide source.

North Block:

Volcanic has conducted a ground investigation on all EM anomalies identified from the airborne survey. Geological mapping, rock and soil sampling, and induced polarization and self potential EM geophysical surveying was conducted over the prominent Perbreg anomaly, located 1.5km southeast of the former Gjegjan copper mine.

South Block:

Copper showings in the Surroj and Prej Lure areas were prospected and surveyed. All geophysical data from the airborne survey was interpreted with the following recommendations:

  • Eleven VTEM conductive zones have been interpreted as probable bedrock conductors with a potential for base or Ni/PGM/Cr mineralization, of which six are rated as top priority targets;
  • Initial follow up using a combination of prospecting, mapping and geochemistry and limited MaxMin HLEM coverage (supplemented by SP and magnetics as determined to be useful) on small grids is recommended;
  • Detailed ground geophysical surveys, including possible use of large-loop TDEM surveys for deeper targets, are required for suitable delineation of the various inferred conductive targets before any drilling decision;
  • The AEM and aeromagnetic data provide new insights into the geology and structure of the poorly mapped South Block; in particular, the data outlines a series of semi-continuous mafic/ultramafic assemblages separated by indicated oblique cross faults;
  • Continued close interaction and collaboration with local experts in terms of evaluating the VTEM targets as well as reassessing any past geophysical and other exploration data in this region is strongly advocated; this may lead to other weaker VTEM anomalies being identified as possibly interesting secondary targets.

Volcanic's technical team believes there is potential for additional Gjegjan-style VMS deposits in the area. Volcanic is currently evaluating the results of its exploration program in order to delineate an appropriate follow up program of possible ground work, evaluation, and drilling on potential targets.

Mr. Rock Lefrançois, P.Geo., Director of Volcanic and Qualified Person as defined by National Instrument 43-101, has reviewed the technical information on the Gjegan Property contained in this News Release.

Aldon and Brownstone Projects / Financing

Volcanic has entered into a letter of intent with Aldon Oils Ltd. ("Aldon") to participate in the drilling of an initial horizontal test well on Aldon's 320-acre Viewfield Property located in the heart of the Bakken play in Southeastern Saskatchewan. Volcanic will fund 25% of the drilling, completion and equipping costs in order to earn a 15% working interest in the well. Following the completion of the test well, Volcanic will have the option to continue to participate in the further drilling of additional wells on the property with the same net ownership.

Volcanic has entered into a second letter of intent with Brownstone Resources Ltd. ("Brownstone") to participate in the drilling of an initial horizontal Bakken zone test well on Brownstone's 6400-acre Moosomin Property (the "Moosomin Property") located near the town of Moosomin in Southeastern Saskatchewan. Volcanic will fund 12.5% of the drilling, completion and equipping costs in order to earn a 12.5% working interest in the well. Following the completion of the test well, Volcanic will have the option to continue to participate in the further testing and evaluation of the property.

Mr. John LaGourgue, President of Volcanic, states, "Together with the ongoing exploration of the Gjegjan Property, we are very pleased at the opportunity to participate in the evaluation of these two prospective, early stage projects and the opportunity they represent, specifically in the Saskatchewan Bakken play, in potentially expanding and diversifying our interests in the natural resource sector."

To fund these new projects, Volcanic will undertake a non-brokered private placement of up to 3,333,333 flow-through common shares at a price of $0.15 per share for gross proceeds of up to $500,000. The securities issued pursuant to the private placement will be subject to a four month hold period from closing. Completion of the private placement remains subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

ON BEHALF OF THE BOARD

VOLCANIC METALS CORP.

John LaGourgue, President, Chief Operating Officer and Director

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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