Rosebank Regulatory News (ROSE)

3 May 2007 07:00

Vane Minerals PLC03 May 2007 3rd May 2007 VANE Minerals Plc (AIM:VML) Arizona Breccia Pipe Uranium Exploration Update VANE Minerals Plc ("VANE" or "the Company") is pleased to provide an update onits breccia pipe uranium exploration activities in northern Arizona, operatingas VANE Minerals (US) LLC, its wholly-owned uranium subsidiary. The schedule of the drilling programme for the Miller, Big Red, and Red DikePipes has been modified in order to complete the work obligations required bythe State of Arizona within the stated time constraints of the explorationpermits. Exploration programmes are required to be completed within one year ofapproval. Due to limited rig availability,and adverse weather one of the threedrill holes planned for the Miller Pipe was completed and the rig was then movedon to Big Red, followed by Red Dike, in order to satisfy those work commitments. DRILLING PROJECTS Miller Pipe Project Hole 691-1 was completed to a depth of 1445 feet (441m). The hole was designedto offset, 60 feet (18m) to the northeast, the mineralised zones encountered inholes 1640-3 and 1640-5 drilled by Energy Fuels Nuclear, Inc in the 1980's. Hole691-1 deviated 44 feet (13m) northeast from the collar and out of the pipe andwas barren of uranium mineralisation. The geological results indicate thehigh-grade mineralisation encountered in the old holes is contained in theannular ring fractures of the pipe and that hole 691-1 is outside the annularrings. Further exploration drilling will focus on the annular rings as well asthe pipe interior and the next hole is planned for the inferred western portionof the pipe, which has not yet been tested. Annular ring mineralisationaccounted for substantial uranium tonnage in other pipes in the district,particularly the Orphan Mine, which historically produced 5 million pounds ofuranium oxide ("U3O8"), in addition to mineralisation in the pipe cores.Drilling will resume at Miller when the rig is released from the other VANEprojects.. Big Red Pipe Project Hole 696-1 was completed to a depth of 1144 feet (349m). The hole was located inthe inferred centre of the pipe based on historic drilling data. The holeintersected the pipe from the collar to some point above the Coconino Sandstoneformation (above 600 feet (183m)) and from there remained outside the pipe toits completed depth. The log showed weak anomalous gamma radioactivity.Favourable alteration was observed in core and drill cuttings in the formationat and below the expected level of uranium deposition. Both the gamma log andalteration are highly encouraging indications that the pipe has undergone amineralising event and could contain a uranium deposit. Based on results, thepipe centre is estimated to be located north of hole 696-1. The rig was moved to the Red Dike project to satisfy the permit agreement workrequirements, as stated above, and a second campaign of drilling on the Big RedPipe is now planned. Red Dike Pipe Project Drilling on hole 698-1 is in progress. Drilling production on this hole hasbeen slow due to difficult drilling conditions encountered in the upper part ofthe hole. This zone is at present being cased and drilling will resume oncompletion. Matthew Idiens, Director of Corporate Development commented "The potentialmineralised ore zone of a pipe is, as a result of the high grades found,relatively small and therefore it can take a few drill holes to intersect thezone properly. As an example, 3m lbs U3O8 at a grade of 0.7% could be containedin approximately 255,000 tonnes. Therefore we are encouraged by the resultsobtained so far, none of which diminish our view of the favourability orpotential of any of the targets drilled. Since the 1980's, VANE is only thesecond company to drill on the south rim for breccia pipes and the third companyto initiate drilling in the breccia pipe district. With this in mind we aim touse the experience and expertise gained in this region to continue to expeditethe programme further and we are excited about the prospects of additionaldrilling on these targets." Kristopher K. Hefton, Chief Operating Officer VANE Minerals (US) LLC, BScGeology, who meets the criteria of a qualified person under the AIM Rules -Guidance for Mining, Oil and Gas Companies, has reviewed and approved thetechnical information contained within this announcement. Enquiries: VANE Minerals PlcMatthew Idiens+44 (0) 20 7667 6322 Ambrian Partners LimitedRichard Brown+44 (0) 20 7776 6417 Parkgreen CommunicationsCathy Malins/Annabel Leather+44 (0) 20 7851 7480 This information is provided by RNS The company news service from the London Stock Exchange