Rosebank Regulatory News (ROSE)

19 Feb 2007 07:01

Vane Minerals PLC19 February 2007 19th February 2007 VANE Minerals Plc (AIM: VML) Acquisition of the North Alice Extension Project, Lisbon Valley, Utah VANE Minerals Plc is pleased to announce that its wholly-owned uraniumsubsidiary, VANE Minerals (US) LLC ("VANE (US)" or "the Company"), has signed a5 year renewable lease agreement on 18 lode claims (approximately 350 acres) inthe Lisbon Valley Uranium District of south-eastern Utah. The claims, whichmake up the North Alice Extension Project, are located on and adjacent to theNorth Alice Mine, formerly held and operated by Homestake Mining Company ("Homestake"), which produced about 2.5 million pounds of uranium oxide ("U3O8")before closing in the early 1980's due to the falling price of uranium. The south-eastern part of the claim group covers the northwest portion of theNorth Alice Mine workings (including a sealed vent shaft) where the limited dataavailable at this stage indicates that resources appear to be in place. Inaddition, the property covers an area which has had substantial drilling,including delineation drilling, completed by Homestake during the early 1980's. The Lisbon Valley has historically produced in excess of 78 million pounds U3O8and includes the Rio Algom Lisbon Mine/Mill complex which is located one mile tothe northeast of the North Alice Extension Project on the down-thrown side ofthe Lisbon Fault. The Lisbon Mine itself produced in excess of 18 millionpounds of U3O8 until being mined out and currently is in reclamation. Mineralisation in the North Alice Extension Project occurs in stratabound unitson the up-thrown side of the Lisbon Fault at depths of 700-800 feet. The Companyis presently attempting to acquire additional data on the areas ofmineralisation that were drilled late in the exploration history of LisbonValley, circa early 1980's. At the same time, the Company is drafting a Noticeof Intent to Drill to submit to the Bureau of Land Management to initially drill25 confirmation holes. Drilling is expected to start in the second quarter of2007 depending on approval. A drilling contractor has already been identifiedfor this drilling campaign. Matthew Idiens, Director of Corporate Developments commented, "The Company'sgeologists believe the North Alice Extension Project has substantial resourcesand excellent exploration potential. This acquisition further strengthens oururanium portfolio and we are encouraged by the historical uranium production ofthe Lisbon Valley area which provides evidence that this region is highlymineralised. An aggressive drilling programme will commence as quickly aspossible as we aim to increase our uranium resources." Minas Charay As reported in our interim results, a 26-hole drilling programme carried out atMinas Charay did not confirm the large low-grade target and was only successfulin delineating a narrow high-grade precious metal vein system. Accordingly, thisproject was assigned lower priority with all financial obligations beingterminated pending renegotiation with the local owner of the mineral rights tothis property. The Board has decided not to proceed with the renegotiation as it was unable toagree satisfactory terms and it wishes to concentrate its efforts onexploitation of, and additions to, its uranium portfolio and the operation ofthe successful Diablito mine. As previously noted, the Board feels that the MinaCharay project's unfavourable results will not have a material effect on thecompany. Kristopher K. Hefton, Chief Operating Officer VANE Minerals (US) LLC, BScGeology, who meets the criteria of a qualified person under the AIM ruleguidance for mining, oil and gas companies, has reviewed and approved thetechnical information contained within this announcement. All historical data has been sourced from publicly available 43-101 reports Enquiries: VANE Minerals Plc Ambrian Partners LimitedMatthew Idiens Richard Brown+44 (0) 20 7667 6322 +44 (0) 20 7776 6417 Parkgreen Communications Daniel Stewart & CoCathy Malins/Annabel Leather Katie Shelton+44 (0) 20 7851 7480 +44 (0)20 7776 6550 About VANE Minerals: Since December 2004, VANE Minerals has built a substantial uranium portfolio ofproperties in the US, initially targeting the Northern Arizona Breccia PipeDistrict which holds the highest grade deposits in the US. The Company is using the silver/gold production at the Diablito mine in Mexicoto help fund exploration work across its attractive portfolio of uranium as wellas base and precious metal prospects. VANE was founded by the former international exploration team ofFreeport-McMoRan Copper & Gold Inc., one of the world's largest producers ofcopper and gold. The Company has assembled a highly qualified and experiencedmanagement team with a proven track record in exploration and development, whohave spent their entire careers searching for and defining large scale mineraldeposits. For further information, please review: www.vaneminerals.com. This information is provided by RNS The company news service from the London Stock Exchange