30 Jan 2009 12:32
30th January 2009
VANE Minerals Plc ('VANE' or the 'Company')
Lease Agreement signed on Yuma King Copper Project, Arizona
Further to the Company's announcement on 22nd September 2008, AVEN Associates LLC, a wholly owned subsidiary of VANE Minerals plc., has signed a Lease Agreement ("Agreement") with Merrill Palmer, the owner of the Yuma King copper-molybdenum prospect ("Property").
The Yuma King Mine, historically the primary prospect on the Property, has historic production of 8,709 tons of copper ore, producing 461,686 lbs of copper (Keith, 2003). The Property consists of 320 federal lode mining claims, covering approximately 6,400 acres, located in La Paz County, west-central Arizona.
Historical Data
Past exploration on the property consists of detailed mapping and sampling of both surface and extensive underground workings, ground and airborne magnetic surveys and the drilling of 19 surface diamond drill holes. This work has outlined a potential copper oxide resource and intersected porphyry style copper-molybdenum alteration and mineralization in several of the deeper drill holes.
The former lessee terminated its agreement with Merrill Palmer in July 2008. A NI43-101-complaint Technical Report dated 7 November 2005 was prepared by the former lessee, albeit before the 19 surface holes were drilled. VANE is currently examining the NI 43-101 report to determine its accuracy and completeness in light of the additional holes drilled.
Agreement terms
The Agreement calls for escalating annual advanced royalty payments starting at US$20,000 on signing and increasing to a maximum of US$100,000 in year 5 with a 2.5% Net Smelter Royalty ("NSR") on production. The 2.5% NSR royalty can be reduced to 1.5% by making a payment of US$2,000,000.
Commenting today Steve Van Nort, CEO of VANE Minerals, said:
"We are pleased that the full Lease Agreement has now been finalized. We look forward to conducting additional work on the project including mapping and drilling to fully evaluate the copper oxide potential as indicated in the NI 43-101 report and further evaluate the potential for a copper/moly porphyry deposit. "
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For further information, please contact:
| VANE Minerals Plc | +44 (0) 20 7667 6322 |
| Matthew Idiens | |
| Ambrian Partners Limited | +44 (0) 20 7634 4709 |
| Richard Brown | |
| Thomas Weisel Partners | +44 (0) 20 7877 4478 |
| Paul Newman | |
| Threadneedle Communications | +44 (0) 20 7653 9850 |
| Laurence Read/Beth Harris | +44 (0) 79 7995 923 |
Notes to Editors
VANE Minerals is an exploration company, with a cash flow, financed in part by production from the silver/gold Diablito Mine and mill in Western Mexico. The Company has assembled a highly qualified and experienced management team with a proven track record in exploration and development. VANE now has projects in Mexico, Paraguay and the US, incorporating exposure to gold, silver, copper and uranium. The Company's principal objective is to utilise the funds generated from Diablito to identify and explore undervalued and under-explored projects, create value in those projects and realise that value through exploitation or disposal to third parties. For further information, please visit www.vaneminerals.com.