Rosebank Regulatory News (ROSE)

4 Jul 2005 10:04

Vane Minerals PLC04 July 2005 VANE Minerals plc (AIM: VML) Update on Guadalcazar Vane Minerals ("VANE" or "the Company") announces that it has successfullyrenegotiated the option payments for its major Guadalcazar exploration project,in the state of San Luis Potosi, Mexico. VANE has deferred the US$300,000 payment due Minera Apolo SA de CV in June 2005,reducing this payment to US$30,000 with another payment of US$30,000 to be madein December 2005. The outstanding balance of US$240,000 will be due for paymentin June 2006. The Company still retains the right to exit the agreement at anystage with no financial penalties. Three to five further drilling targets are expected to emerge from the review ofthe first round drilling programme, completed at Guadalcazar last March. VANEexpects to begin testing these areas at the end of the summer period. Michael Spriggs, Chairman of VANE, commented, "This renegotiation is very goodnews for VANE as it gives us ample time to continue exploring this extensiveproject without incurring substantial costs other than those committed to directexploration. This will allow us to concentrate on pursuing our strategy ofidentifying and developing the mineral potential of Guadalcazar." Background: Guadalcazar is a large, newly recognised hydrothermal system, previously thoughtto be alluvial until recently defined by the VANE team. The project comesdirectly from the Freeport-McMoRan Inc. Exploration Database that is availableto the Company and therefore is subject to the agreement the Company has withFreeport-McMoRan (details of which can be found at the company's websitewww.vaneminerals.com). The exploration licence covers an area in excess of 20 sqkm. Within this large area, through geochemical and geophysical sampling, theCompany has identified drilling targets which the Company believes may reveal alarge gold deposit. Enquiries: VANE Minerals plc Seymour Pierce Limited Parkgreen CommunicationsMatthew Idiens Sarah Wharry 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