Rosebank Regulatory News (ROSE)

2 Nov 2005 09:50

Vane Minerals PLC02 November 2005 VANE Minerals plc (AIM: VML) Commercial Production Initiated at Diablito VANE Minerals plc ("VANE" or "the Company") today announces that its whollyowned subsidiary, Minerales VANE SA de CV, has initiated commercial productionat its high grade gold/silver Diablito project located in the State of Nayarit,west-central Mexico. Agreements with Minera Real de Cosala SA de CV and Nexxtrade (both Mexicancompanies) are already in place, thereby assuring the availability of millingfacilities for the processing of the high-grade precious metal ore and a tradingplatform for the sale of the resulting concentrates. The production of ore willcontinue at the rate of 60 tonnes per day ("tpd") with the concurrentdevelopment of the lower levels of the mine for future production. It isexpected that the development of the upper level will be completed in Novemberand the "mining of ore only" will commence from that level. This is anticipatedto increase the grade and therefore revenues. In the months of August and September 2005, 3,200 tonnes of ore were mined atDiablito and stockpiled at the Cosala mill. This stockpile is presentlyundergoing flotation concentration at the mill and the concentrates producedfrom this process - an estimated 100 tonnes - are scheduled to be sold beforethe end of November. This is expected to generate revenue in excess ofUS$400,000 for the two production months of August and September, with revenuesexpected to continue monthly thereafter. Michael Spriggs, Chairman of VANE, commented: "This commercial production is animportant step in VANE's development as it differentiates us from other juniorexploration companies. We are now set to produce solid cash flows, and therevenues generated from Diablito will offset the majority of the Company'sexploration expenditures which will reduce the cash burn to minimal levels." General Update: VANE Minerals (US) LLC, the Uranium subsidiary of VANE Minerals PLC, continuesto concentrate on the expansion of its property portfolio. Advanced negotiationsare progressing well with a number of parties on making additions to ourproperties and it is the intention to release further news upon signing of thecontracts. The Company is also progressing well in Mexico with its exploration programmesat the Mina Charay gold/silver project and the Choix copper project. Furtherdrilling at Guadalcazar is expected now to commence in the first quarter of2006. Following the acquisition in November 2004 of data from a two-year streamsampling programme in Paraguay, the Company's geologists have been targeting theknown gold and copper/gold anomalies and focusing on the potential sources. TheCompany is encouraged by sampling results to date and will provide a moredetailed update in due course. Enquiries: VANE Minerals plc Seymour Pierce Limited Parkgreen CommunicationsMatthew Idiens Jeremy Porter Justine Howarth / Annabel Leather020 7667 6322 020 7107 8000 020 7493 3713 This information is provided by RNS The company news service from the London Stock Exchange