The drilling is part of the Tasman-Rio Tinto Exploration (RTX) FarmIn, which started in late 2012. A further 6,700 metres (about 5 drill holes) is likely to be drilled, which is expected to take about four months.
The Vulcan project is about 30 kilometres north of Olympic Dam.
It is a very large IOCGU system, where drilling to date has intersected very thick intervals of alteration and low grade mineralisation over a very large target area of about 12 square kilometres.
Twelve drill holes have been completed so far.
Under the farm-in deal with RTX, signed in October 2011, Rio was to inject a cash of $10 million into Tasman for the Vulcan prospect, while Tasman would undertake a $5 million exploration program across the Project over the first 12 months, with the objective of further proving up the potential of the Vulcan prospect.
Tasman had $7.12 million in cash at the end of last quarter, which included about $1.26 million held by Eden Energy (ASX:EDE), in which Tasman has a 47% interest. This equates to around $0.03 in cash backing. Add in investments in Eden and Fission Energy (ASX:FIS) and this is around $0.044 in cash backing versus a share price of $0.099.
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