Rosebank Regulatory News (ROSE)

11 May 2005 07:00

Vane Minerals PLC11 May 2005 VANE Minerals plc (AIM: VML) Commencement of Mining Operations at Diablito Project VANE Minerals Plc ("VANE" or "the Company") announces that mining operationshave begun at the high grade gold/silver Diablito project, located in Nayarit,west-central Mexico The Company also announces that test mining carried out so far, has producedapproximately 450 metric tons of ore, which is being prepared for shipment andconcentration. This material was extracted in the course of mine development andwas therefore expected to be of lower grade than the material produced fromfuture mining operations. The material produced by test mining will thereforenot be transported directly to a smelter, as is expected with the ore producedwhen the mine is in full production. Instead, this material will be used for amill test to evaluate the effectiveness and the resulting revenue fromconcentrating the ore from Diablito using froth flotation to produce a sulphideconcentrate that will then be smelted to recover gold and silver values. Construction of the Diablito mine is continuing on schedule. The 2.2 metres x2.2 metres haulage tunnel now extends 77 metres from the portal and is advancingin vein material. The haulage opening and development drift will soon beconnected with the ground surface via an inclined tunnel in the plane of thevein that will provide ventilation as well as a second exit from the mine. Michael Spriggs, Chairman of VANE, commented: "VANE continues to make strongprogress towards its objective of becoming a self-funding exploration company,with the near term revenue from gold/silver production. We are highly encouragedby progress to date at Diablito and look forward to providing our shareholderswith regular updates on the mine development." Enquiries: VANE Minerals plc Seymour Pierce Limited Parkgreen CommunicationsMatthew Idiens Sarah Wharry Justine Howarth / Cathy Malins020 7667 6322 020 7107 8000 020 7493 3713 This information is provided by RNS The company news service from the London Stock Exchange