Rose Uranium Breccia Pipe Project Update

RNS Number : 9657Q

Vane Minerals PLC

28 October 2011

 



VANE Minerals plc (AIM:VML)

("VANE" or the "Company")

Rose Uranium Breccia Pipe Project Update, Northern Arizona

VANE today announces a drilling update on the Rose uranium breccia pipe project (the "Rose Project") on which the exploration is carried out by its wholly-owned subsidiary, VANE Minerals (US) LLC in an agreement with Uranium One Exploration U.S.A. Inc. ("U1").

Highlights

·      Three deep holes completed with the following main mineralised intercepts:

o  Hole 11-R-1;  1295.5 - 1394.5ft (99.0ft) averaging 0.06% eU₃O₈

o  Hole 11-R-2;  1436.5 - 1439.5ft (3.0ft) averaging 16.45% eU₃O₈

o  Hole 11-R-3;  1429.5 - 1439.0ft (9.5ft) averaging 0.64% eU₃O₈

·      Mineralisation in excess of +1% eU₃O₈ has been encountered on the project over a horizontal distance of 100ft and vertical extent of 250ft

·      Vertical extent of known mineralisation of 0.05% eU₃O₈ or greater expanded to 700ft

David Newton, CEO of VANE Minerals said "We are encouraged by these drilling results and the mineralisation that has been encountered. Further drilling will continue at Rose with the aim of establishing an NI 43-101 compliant resource, which will add to our existing resource of 1.118m pounds at our Wate project."

Background

The Company has completed three deep holes on the project indicating very encouraging results.  Two of the three holes completed encountered +1% grade uranium mineralisation confirming previous historic drilling results at those grades.  However, Hole 11-R-2 encountered an interval with a radiometric grade average of 16.45% eU₃O₈ with a maximum of 47.88% eU₃O₈, which is a substantially higher radiometric grade than had previously been encountered on any of the VANE breccia pipe projects.

The drill hole results, combined with data from previous drilling indicates that the pipe centre is easterly from all holes drilled to date.  The +1% eU₃O₈ intervals in holes 11-R-2 and 11-R-3 are at the same depth (±1435ft) and approximately 60ft apart horizontally.  Additionally, the current drilling verifies +1% eU₃O₈ mineralisation over a horizontal distance of 100ft and a vertical extent of 250ft when incorporating historic drilling.  The vertical extent of mineralisation at grades 0.05% eU₃O₈ and higher has been increased to over 700ft.  The mineralised intervals have been encountered over significant distances that, if continuous, would be sufficient to develop economic resources.  Additional drilling is required to prove the continuity of the ore-grade mineralisation to establish NI43-101 compliant resources.  The drilling programme is continuing with a view to establishing a resource.

The following details the mineralised intercepts of 0.05% eU₃O₈ or higher in the three holes drilled:

Hole 11-R-1

1295.5-1394.5ft - 99.0ft - 0.06% eU₃O₈ (max. 0.19% eU₃O₈)

Hole 11-R-2

1240.0-1247.5ft - 7.5ft - 0.15% eU₃O₈

1417.5-1421.0ft - 3.5ft - 0.46% eU₃O₈ (max. 0.88%)

1436.5-1439.5ft - 3.0ft - 16.44% eU₃O₈ (max. 47.88% eU₃O₈)

1445.5-1448.0ft - 2.5ft - 0.09% eU₃O₈

1457.0-1458.0ft - 1.0ft - 0.09% eU₃O₈

Hole 11-R-3

1072.0-1076.5ft - 4.5ft - 0.08% eU₃O₈

1099.0-1104.0ft - 5.0ft - 0.07% eU₃O₈

1172.0-1175.5ft - 3.5ft - 0.11% eU₃O₈

1429.5-1439.0ft - 9.5ft - 0.64% (max. 4.28% eU₃O₈)

1457.0-1458.5ft - 1.5ft - 0.08% eU₃O₈

1468.5-1470.0ft - 1.5ft - 0.09% eU₃O₈

1490.0-1491.0ft - 1.0ft - 0.12% eU₃O₈

Under the terms of the agreement with U1, VANE will manage the exploration of the Rose project and all expenditures will be shared equally with U1.  Upon outlining a 1.0 million pounds eU₃O₈ NI43-101-compliant resource, VANE will make a cash payment of US$250,000 to U1.   U1 will then assume management of the project and upon securing a mineral lease from the State of Arizona, VANE will make a final payment of US$250,000 to U1 in order to acquire a 50% interest in the Rose Project.  The Rose Project is operated separately from the existing VANE-U1 joint venture.

Kristopher K. Hefton, Chief Operating Officer VANE Minerals (US) LLC, BSc Geology, who meets the criteria of a qualified person under the AIM Rules - Guidance for Mining, Oil and Gas Companies, has reviewed and approved the technical information contained within this announcement. VANE Minerals, as operator of the project, is responsible for the contents of this press release.

For further information, please contact:

VANE Minerals Plc David Newton/Matthew Idiens	[phone]
Allenby Capital Brian Stockbridge/Alex Price	[phone]
Threadneedle Communications	[phone]

Laurence Read/ Beth Harris

 

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