NEW YORK, June 15 /PRNewswire-FirstCall/ -- Volcan Holdings, Inc. (OTC Bulletin Board: VOHO) (the "Company" or "Volcan") -Volcan's pursuit of large-scale bauxite projects in Australia has led to the Queensland State Government granting Volcan new exclusive mineral rights to large historic bauxite deposits.
Volcan's latest acquisition, the 409 square kilometre South Johnstone Bauxite Project, now officially signed with the Queensland Mines and Minerals Department, has already through previous drilling, reported tonnage of over 50 million tons with a potential resource estimate well in excess of five times that amount.
The resource was drilled in 1961 by Carpentaria Exploration Company Pty Ltd, a subsidiary of Mt Isa Mines, which was one of Australia's largest mining companies. The reports were found by Volcan's geologists following research into the Government's historical geological archives of reported bauxite deposits. The resource is located in an ideal infrastructure setting, being connected by rail to the nearest deepwater port, only ten miles from the reported deposit.
Please be advised, however, that these reports predate the current Australasian Joint Ore Reserve Committee requirements for reporting of resources, and therefore are not classified as JORC (or its equivalent 43-101) compliant resources and are reported here only for informational reference.
Because the deposits are virtually at surface, Volcan anticipates mining and rehabilitation costs typical to these sorts of deposits at less than $13 per ton, with sales potentially reaching as high as $80 per ton from port, based on historical prices. Depending on the grade of bauxite, and final mining and transportation costs, the profits on an economic bauxite mine could be very significant. It is the intention of Volcan to mine millions of tons of bauxite annually once full mining licenses are obtained, which Volcan is currently working towards achieving.
The Company is also investigating the possibility of building an alumina refinery in the area in order to substantially increase profit margins.
The South Johnstone Bauxite Project is located approximately 500 miles from Rio Tinto's massive world class Weipa bauxite mine, and approximately 50 miles from the city of Cairns. This is in addition to Volcan's many other bauxite projects throughout eastern Australia.
Pnina Feldman, Volcan's President said, "World shortage near infrastructure of commercially viable bauxite, and the willingness of the Queensland Mines Department to assist in the furtherance of bauxite exploration in its area of jurisdiction, makes this project an extremely exciting acquisition for Volcan."
"This acquisition places our company at the forefront of potential new major bauxite production in Australia. The entire team at Volcan look forward to rapidly enhancing the Company's assets and increasing shareholder wealth by achieving our goals of becoming a major producer of bauxite and alumina worldwide," she said.
One of Volcan's expert bauxite geologists, Peter Temby, said, "We are highly encouraged with the results of our bauxite acquisitions and exploration to date. The recent research by our team into historical data at South Johnstone has greatly further enhanced the Company's prospects of quickly becoming a significant bauxite producer." Peter Temby is the geologist largely responsible for coordinating the recent discovery of a >100 million ton bauxite deposit in Laos.
Bauxite is the most important aluminium ore and Australia is one of the top global producers of bauxite with almost one-third of the world's production. Bauxite is the only raw material used in the production of alumina on a commercial scale in the United States.
For further details on Volcans projects including a full updated report released today on all Volcan's projects and exploration results, including further details on the South Johnstone project, please visit the company's website www.volcanholdings.com .
For enquiries concerning Volcan Holdings Inc. please contact Volcan’s Managing Director, Sholom Feldman, via email: email@example.com or call Dan Meyers on +1-516-849-9119.
Safe Harbor Statement
This press release contains certain forward-looking statements. Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, those risks and uncertainties set forth in the company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K/A filed with the SEC on January 15, 2010. Investors and security holders are urged to read this document free of charge on the SEC's web site at www.sec.gov. The Company does not undertake to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
SOURCE Volcan Holdings, Inc.