Rosebank Regulatory News (ROSE)

26 May 2005 07:01

Vane Minerals PLC26 May 2005 VANE Minerals plc (AIM: VML) Results of Latest Drilling Programmes VANE Minerals Plc ("VANE") is pleased to announce the successful completion ofthe first round of exploration drilling at the Guadalcazar project in the stateof San Luis Potosi, Mexico as well as completion of second-stage drilling atMina Charay in the state of Sinaloa, Mexico. Guadalcazar: Approximately 1,067 metres of HQ core were obtained from 12 drill holes locatedon a spacing of approximately 500 metres. Anomalous values of gold and silverwere detected in every hole drilled. Initial assays indicate gold and silvervalues as high as 0.5 g/t and 38 g/t respectively. Bedrock limestone was foundto be hydrothermally altered (marbleised) in several holes located in thewestern part of the district. A programme of check assaying is now underway to confirm analytical results. Thedrill core samples will also be analyzed for tin and mercury as thisinformation, along with the marbleised zones will aid in directing futuredrilling toward more strongly mineralized centre(s) that will be the object of asecond round of drilling. This is planned for later this summer. Mina Charay: A second round of diamond drilling has now been completed at Mina Charayconsisting of 12 holes and bringing the total number of holes completed to 19.Nine of these holes intersected mineralized veins with a weighted average goldgrade of 12.41 g/t and weighted average silver grade of 112.42 g/t over anaverage core length of 2.2 m corresponding to a true vein thickness ofapproximately 2 m. The nine holes are all located within a zone 200 metres longwhich trends N70E. The holes in question are all parallel, bearing S20E, andinclined at -45 to -60 degrees to the south. Holes are spaced 25 to 50 metresapart along the 200-metre length of the vein system. Mineralization remains openat depth and possibly to the west. The mineralized intersections for Mina Charay are summarized below: Initial Drilling Campaign DDH# Interval(m) Core length (m) Au g/t Ag g/t 1 17.7 - 18.3 0.6 5.59 185.11A 25.6 - 28.5 2.9 24.94 290.12 26.0 - 27.4 1.4 10.10 30.93 51.3 - 53.5 2.2 1.93 29.44 30.2 - 34.0 3.8 6.09 63.4 Second (Current) Drilling Campaign 7 31.4 - 35.2 3.8 7.06 99.38 54.9 - 57.9 3.0 20.34 70.414 25.6 - 25.9 0.3 11.86 24.015 39.9 - 42.0 2.2 19.45 172.7 Based on the high-grade nature of the mineralization, the relatively shallowdepth and continuity along the 200-metre strike length of the vein system, VANEintends to initiate a third drilling campaign in order to define a resource andassist in the development plan. Michael Spriggs, Chairman of VANE, comments, "The results at Guadalcazarcorroborate our belief in the widespread nature of the gold and silvermineralisation across this potentially major project, as well as confirming thatthe deposit is indeed hydrothermal. We will now concentrate our efforts onidentifying higher grade areas of mineralisation through the second round ofdrilling. We are also very encouraged with the progress being made at MinaCharay and will continue to move this forward as quickly as possible." Background: Guadalcazar is a large newly recognised hydrothermal system, previously thoughtto be alluvial until recently defined by the VANE team. The project is directlyfrom the Freeport-McMoRan Copper and Gold Co. Exploration Database that isavailable exclusively to the Company and therefore is subject to the agreementthe Company has with Freeport-McMoRan (details of which can be found at thecompany's website www.vaneminerals.com). The exploration licence covers an areaof over 20km(2). Within this large area, through geochemical and geophysicalsampling, the Company has identified drilling targets which the Company believesmay lead to a large gold deposit. VANE entered into an option agreement to acquire Mina Charay in September 2004.The Company believes the prospect could be fast tracked into production and maytherefore offer the potential for generating rapid cash flow. This is in linewith VANE's strategy when it acquired the high grade Diablito gold / silverproperty ("Diablito") in the state of Nayarit, Mexico. If successful, cash flowfrom production at Diablito and/or Mina Charay will enable the Company to expandits exploration programme and will allow further expansion of its assetportfolio without over-extending its resources. Enquiries: VANE Minerals plc Seymour Pierce Limited Parkgreen CommunicationsMatthew Idiens Jeremy Porter 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