Rosebank Regulatory News (ROSE)

2 Apr 2007 07:02

Vane Minerals PLC02 April 2007 2nd April 2007 VANE Minerals Plc (AIM: VML) Utah Stratabound Uranium Exploration Update VANE Minerals Plc ("VANE" or "the Company") is pleased to provide an update onthe exploration programme for stratabound uranium deposits in south-eastern Utahbeing carried out by its wholly-owned uranium subsidiary VANE Minerals (US) LLC. Highlights: North Wash • Drilling results have validated historic data reported by Cotter Corporation ("Cotter") in the 1970's - historic drilling had returned uranium grades with an average of 0.17% uranium oxide radiometric equivalent ("eU3O8") diluted • Vanadium grades are variable • Additional drilling is planned to expand current resource and to gather additional vanadium assays North Alice Extension • A Notice of Intention to Conduct Exploration has been submitted to the Bureau of Land Management and the State of Utah for 25 drill holes Happy Jack Mine • A 25 hole drilling programme expected to commence in April 2007 North Wash Drilling Project VANE is pleased to report that five drill holes have now been successfullycompleted at the North Wash project, and results validate the historic uraniumand vanadium mineralisation identified by Cotter's drilling programme carriedout between 1977 and 1979. The VANE holes were logged (probed) by GeophysicalLogging Services and by Century Geophysical Corporation; the results of bothcontractors were essentially the same. The drilling programme consisted of twinning five existing holes by rotarydrilling to the top of the mineralised zone and then coring through the zone.The uranium values from two of the new holes were higher than those on previousholes. On three of the new holes, although they intersected the mineralisedzone, the results were lower than in the previous holes. The vanadium resultsindicated zones of high vanadium, as well as zones of negligible vanadium. Theoverall results are consistent with the nature of these types of stratabounddeposits in that "pinching and swelling" of the mineralisation occurs over shortdistances. The distance between the intersections of the mineralised horizon in the VANEand Cotter holes varied by as much as 30 feet, even though on surface the holeswere located within 5 feet of each other. This accounts for the variabilitybetween VANE and Cotter data. VANE ran downhole directional surveys of itsdrill holes, whereas few of the Cotter holes were surveyed at the time ofdrilling. The Company is currently awaiting the results of radiometricclosed-can analyses to compare with the chemical assays for the purpose ofchecking the equilibrium of the uranium mineralisation. A tabulation of probeand assay results is provided at the end of this press release. VANE geologists are satisfied with the drilling programme and are confident thatthe results validate the initial data and previous uranium resource calculationcompleted by Cotter. However, it is apparent from the current drilling that anumber of additional core intercepts through ore-grade uranium intervals will berequired to estimate an average grade of vanadium. The Company has determined that the next stage of the exploration programmeshould be to work on expanding the resource, currently open in severaldirections, by further drilling. The Company will also consider completing apre-feasibilty investigation on the economics of mining the project that wouldinclude converting the current resource to 43-101 or JORC status. Upon futuredrilling, core will be obtained periodically to gather more data on the vanadiummineralisation. Happy Jack Drilling Project The Company has identified a drilling contractor and plans to commence drillingthe 25 permitted holes (as previously announced) in April 2007. The drillingprogramme is planned to test several of the pods of mineralisation indicated byhistoric drill results. North Alice Extension Drilling Project On 20 March 2007, the Company submitted a Notice of Intention to ConductExploration to the Bureau of Land Management and the State of Utah for 25 drillholes for the North Alice Extension project, which is located in the LisbonValley Uranium District of south-eastern Utah. Approval from these two agenciesis pending. New Acquisitions The Company continues to look at acquisition opportunities and is negotiating tosecure further prospective properties in south-eastern Utah. Matthew Idiens, Director of Corporate Development, commented: "We are verypleased with the progress we are making and to have confirmed the existingresource on the North Wash project. It should be noted that, since the declinein uranium prices in the 1980s, VANE with its North Wash project is the firstcompany to initiate uranium exploration in the Henry Mountain District. Withrespect to the Happy Jack and Lisbon Valley areas, VANE was one of the first 10companies to submit a plan for drilling with the Federal Bureau of LandManagement and will be the first to initiate drilling in the Happy Jack area ofSan Juan County. We are therefore leading the way with regards to uraniumexploration in these highly prospective areas." NORTH WASH DRILLING AND ASSAY DATA TABULATION (Mineralised intervals are given in depth to bottom of interval (ft) - thickness(ft) - grade % eU3O8) Hole 07-77-29 Drill Depth 222' (Cotter Hole 77-29) Uranium Chemical Assay VANE Probe Cotter Probe201.8' - 4.5' - 0.19% 202.1' - 5.0' - 0.17% 201.0' - 5.0' - 0.12% Vanadium Chemical Assay201.8' - 4.5' - 1.14% V2O5 Hole 07-78-12 Drill Depth 326' (Cotter Hole 78-12) Uranium Chemical Assay VANE Probe Cotter Probe288.1' - 1.0' - 0.19% 288.0' - 1.0' - 0.16% 290.0' - 8.5' - 0.16%297.9' - 4.9' - 0.29% 297.0' - 3.0' - 0.22% Vanadium Chemical Assay288.1' - 1.0' - 0.01% V2O5 (negligible V) 297.9' - 4.9' - 0.01% V2O5 (negligible V) Hole 07-78-42 Drill Depth 317' (Cotter Hole 78-42) Uranium Chemical Assay VANE Probe Cotter Probe290.9' - 0.8' - 0.03% 290.5' - 1.5' - 0.07% 289.0' - 4.0' - 0.48% Vanadium Chemical Assay 290.9' - 0.8' - 0.94% V2O5 Hole 07-79-52 Drill Depth 326' (Cotter Hole 79-52) Uranium Chemical Assay VANE Probe Cotter Probe310.1' - 0.5' - 0.19% 310.5' - 1.0' - 0.16% 315.5' - 3.0' - 0.27% VanadiumChemical Assay 310.1' - 0.5' - 0.05% V2O5 (negligible V) Hole 07-79-65 Drill Depth 327' (Cotter Hole 79-65) Uranium Chemical Assay VANE Probe Cotter Probe301.2' - 2.6' - 0.01% 299.0' - 7.0' - Min. 304.5' - 3.0' - 0.33% VanadiumChemical Assay 301.2' - 2.6' - 0.15% V2O5 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. For further information, please review: www.vaneminerals.com. 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 This information is provided by RNS The company news service from the London Stock Exchange