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 .
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.