Junior miner Vulcan Resources Ltd has approved the initial development of its 800,000 tonnes per annum Kylylahti copper-cobalt-nickel mine and concentrator in eastern Finland. The Perth-headquartered company's definitive feasibility study (DFS) has confirmed the economic and technical viability of the $US170 million ($A184.5 million) project, which is estimated to have a life of mine pre-tax cash flow of $US618 million ($A670.84 million). Chairman Barry Eldridge said he was delighted with the outcome of the DFS, given the global escalation in costs. "The Kylylahti mine development will mark the revitalising of the Outokumpu copper field some 100 years after the initial discoveries in 1910," Mr Eldridge said. "We expect site works to commence in July and the decline by the end of 2008." He said metals markets looked strong for the initial years of the project. Managing director Alistair Cowden said Kylylahti had a 10 year life but expected it to be extended. Shares in Vulcan were down two cents, or 7.14 per cent, at 26 cents at 1455 AEDT Monday.