Rosebank Regulatory News (ROSE)

15 Jul 2008 07:00



15th July 2008

VANE Minerals Plc (AIM: VML)

Operational Update

VANE Minerals Plc ('VANE' or the 'Company') announces an update on its operations in the US, Mexico and Paraguay.

VANE Minerals (US) LLC - Uranium

Arizona Breccia Pipe Projects

Initial drilling has been completed on three targets on the north rim. Shallow drilling has verified encouraging depressions on two of the three targets drilled. Drilling was inconclusive on the third target. An initial deep drill hole completed on one of the two favourable targets encountered weak uranium and significant sulfide mineralization, and altered rock indicating the target is a breccia pipe. Core obtained at various depths encountered fractured rock indicating the hole is along the edge of, but outside, the pipe. Drilling continues on north rim projects.

In addition, a geophysical contractor has been selected to conduct down-hole transient electromagnetics (DHTEM) in the deep drill holes completed on six projects with favourable initial drilling results. This program, scheduled to commence this month, is designed to detect the sulfide bodies that are inherent with uranium mineralization in breccia pipes and assist in planning follow-up drill holes.

The Company announced on 8 April 2008, that drilling had been postponed at VANE's operations within the Kaibab National Forest following the issuance of a Temporary Restraining Order (TRO) by the US District Court in Phoenix, Arizona. The TRO was issued as a result of questions raised by various environmental groups in a lawsuit asserting that the US Forest Service had approved VANE's Plans of Operations for exploratory drilling on seven projects in the Kaibab National Forest without full compliance with environmental procedures. VANE believes that all environmental requirements and procedures have been followed fully, but negotiations are in progress to settle the lawsuit. The Company is working to complete additional submissions to address environmental concerns in order to resume drilling operations. Drilling was completed at three targets prior to issuance of the TRO. Two of the three targets warrant additional drilling based on the initial results. In order to alleviate concerns over the environmental impact of the small scale, low impact drilling programs required to test breccia pipes, the Company has decided to complete further assessments beyond those which have historically been required and proved sufficient.

VANE's Arizona property portfolio is unaffected by a recent resolution of the Natural Resources Committee of the US House of Representatives requesting some 1 million acres of land near the Grand Canyon National Park to be withdrawn "from all forms of location and entry" (new claim staking).

Utah Stratabound Projects

A total of 19 drill holes were completed on the North Alice Extension project. The drill holes consisted of widely-spaced holes on widely-spaced fences designed to assess the potential of the property. The Company plans to further evaluate these results and consider completing additional drilling before moving ahead with the preparation of an NI 43-101-compliant resource report. The property has numerous historic drill holes which have been plotted and mapped to which VANE's results will be added (including the drilling results given in the Press Release of 16 November 2007), and further assessment will be made. The following table lists the drill holes and results from this round of drilling:

Permitting for drilling is in the final stages on the Happy Jack and North Wash projects and drilling is scheduled to commence on Happy Jack during July to be followed by drilling at North Wash.

The Company continues in negotiations on a number of projects and strategic plays in both the US and Europe. 

 Minerales VANE SA de CV, Mexico

Operations, during the first half of 2008, at the Diablito Mine at Las Lumbres and at the successfully commissioned SDA mill at San Dieguito de Arriba have been running smoothly. A 20-hole drilling program designed to upgrade the 2006 resource estimate is now complete and the Company is awaiting assay results. Upon receipt and interpretation of complete assay results, a new resource estimate will be produced.

Drilling of 6 holes at the Bonanza gold-silver prospect, located 30km SE of the SDA mill, has been completed with assay results pending.

Paraguay 

Due to the lack of drill availability in Paraguay, drilling on the six gold-silver-copper anomalies delineated by VANE is now scheduled to begin in late July or early August.

Porphyry Copper, USA

Porphyry copper exploration in the southwest USA continues with several targets being identified. Two prospects were drilled in the 1st half of 2008, with follow-up drilling warranted on one of the targets. Land positions are being solidified on the other identified targets and drilling is scheduled for the 2nd half of 2008.

-----------------------------------------------------------------------------------------------------------------------------------------------------

Steve Van Nort, CEO, commented: "We are well funded and have a number of drilling programs planned over the coming months within the uranium portfolio and outside. As an exploration company, this is the main driver of the business and although our share price has been affected by the market conditions, we continue to get on with the business in hand. 

Frank Nelson, one of the co-founders of VANE Minerals, has retired after an outstanding career spanning 45 years. His service and advice will be greatly missed. The Company wishes Frank and his wife, Eli, all the best during their retirement years. They have earned it." 

Enquiries:

Kristopher K. Hefton, Chief Operating Officer VANE Minerals (US) LLC, BSc Geology, who meets the criteria of a qualified person under the AIM Rules - Guidance for Mining, Oil and Gas Companies, has reviewed and approved the technical information contained within this announcement.

Notes to Editors: VANE Minerals (VANE) is an AIM listed uranium mineral exploration and development company with a strong focus on North America. The Company has a strong portfolio of projects and was initially self-financed by production from the silver/gold Diablito Mine in Western Mexico.

VANE has built a substantial uranium portfolio in the US which, at present, is the main driver for the Company, offering considerable upside in this strong market. VANE also has projects in Mexico, Paraguay and the US, incorporating exposure to uranium, gold, silver and copper.

The Company was founded by former members of the international exploration team of Freeport-McMoRan Copper & Gold Inc., one of the world's largest producers of copper and gold. The team negotiated exclusive access to Freeport- McMoRan's global exploration database, made up of 7,000-plus files generated over nearly 100 years of exploration. For further information, please review: www.vaneminerals.com.