Rosebank Regulatory News (ROSE)

16 Jan 2006 09:00

Vane Minerals PLC16 January 2006 VANE Minerals Plc (AIM: VML) Revenue generated at Diablito New Uranium tailings property Trading update Diablito VANE Minerals Plc ("VANE" or "The Company") reports that the revenue streamanticipated from the sale of Diablito's silver/gold concentrates has nowcommenced with the first shipment of concentrates in December 2005. Continuationof these revenues, which it is estimated will average US$200,000 per month, willachieve VANE's objective of fully funding the group's current foreseeableexploration activities. Choix Drilling equipment originally scheduled for the second round of drilling atGuadalcazar was diverted to the Choix prospect, in Sinaloa, which has resultedin the completion of drilling on the prospect ahead of schedule and underbudget. The assay results are expected in the next 4-6 weeks. Guadalcazar The first-round drilling results in 2005 were encouraging, as they confirmed theCompany's belief in the hydrothermal origin of the gold. Having diverteddrilling equipment to Choix, drilling operations at Guadalcazar are beingrescheduled for the first quarter of 2006. VANE has identified that the entire "tuff area" of 6km by 0.8km is gold bearing. The area is estimated to contain 4million oz of gold, although the Company deems this to be of insufficient gradeat this stage to be mineable. This, however, underlines VANE's belief that thereis likely to be a higher grade feeder(s) within the large area which hassupplied the tuff with its gold content. Paraguay The Government of Paraguay has extended VANE's Investigation Permits by sixmonths, which will now run until September 2006. The first results of soilsampling covering the gold targets initially identified by reconnaissance streamsediment sampling have been received and encouragingly, significant samplesindicate the existence of an extensive area 14km by 8km containing gold.Sampling is continuing in an effort to more accurately define the extent of themineralised area in anticipation of conversion of our Investigation Permits toExploration Licences prior to drilling. Mina Charay Management is currently undertaking a pre-feasibility study at its Mina Charaygold/silver project to confirm the economic viability of the project and thisstudy is expected to be completed by the end of the first quarter 2006. Uranium VANE continues to be active on the Colorado Plateau in the western U.S. where anumber of attractive uranium exploration and acquisition opportunities are beingevaluated. We continue to add properties to our portfolio of uranium targets andare pleased to announce that VANE has been granted the Exploration Permit forthe Hillside Tailings Project, North-Central Arizona. This project is deemedrelatively small with around 180,000lbs but it is a simple process of deliveringthe tailings to a mill, if the economics are viable. VANE is in the process of afeasibility study on this project. Outlook Chairman Michael Spriggs commented: "The Company is pleased with the progress ofVANE so far, continuing to achieve all we had set out to do at IPO and more. Themonthly revenues from Diablito will cover all current exploration coststhroughout the group. We are active on a number of important exploration frontsand consider there to be excellent opportunities for VANE to generatesignificant growth through on-going activities." Enquiries: VANE Minerals Plc Ambrian Partners LimitedMatthew Idiens Richard Brown+44 (0) 20 7667 6322 +44 (0) 20 7776 6417 Parkgreen Communications Daniel Stewart & CoJustine Howarth / Cathy Malins Alex Davies+44 (0) 20 7493 3713 +44 (0)20 7776 6550 This information is provided by RNS The company news service from the London Stock Exchange