New joint venture and option agreement

RNS Number : 1039L

Vane Minerals PLC

27 July 2011

 



Press Release

27 July-2011

VANE Minerals plc (AIM:VML)("VANE" or the "Company")

Northern Arizona - Rose Uranium Breccia Pipe Project Agreement

VANE Minerals plc is pleased to announce that is has signed a joint venture and option agreement with Uranium One Americas Inc. ("U1") (the "Agreement") in relation to the Rose uranium breccia pipe project (the "Rose Project") under which the exploration of the Rose Project will be carried out by its wholly-owned subsidiary, VANE Minerals (US) LLC ("VANE Minerals").

Highlights

·      Expansion of VANE's uranium portfolio

·      Encouraging historic drilling results as each of first three deep holes encountered grade results in excess of +1% eU₃O₈

·      620 feet of vertical extent of known mineralization

·      Rose Project already permitted to enable drilling to commence

About the Rose Project

The Rose Project is located on state lands in northern Arizona.  Energy Fuels Nuclear held the property during the 1980s and conducted exploration drilling of two deep holes that resulted in the discovery of a mineralized breccia pipe.  Both deep holes encountered +1% eU₃O₈ grade.  During 2005, subsequent owners, Quincy Energy, completed a third deep hole which also encountered +1% eU₃O₈ grade.  Significant mineralization was also encountered over a vertical extent of 620 feet between the three holes. The main mineralized intercepts are listed as follows: 

Historic Drill Hole Mineralized Intercepts * 

2255ROS-1 (EFNI)             1299.5ft - 18.0ft - 0.88% eU₃O₈   (max. 4.15% eU₃O₈)

1341.5ft - 34.0ft - 0.09% eU₃O₈

1440.5ft - 5.5ft - 0.11% eU₃O₈

1803.0ft - 13.5ft - 0.14% eU₃O₈

2255ROS-2 (EFNI)             1191.5ft  - 8.5ft - 0.57% eU₃O₈  (max. 1.29% eU₃O₈)

                                                1443.0ft - 9.5ft - 0.08% eU₃O₈

                                                1448.5ft - 9.5ft - 0.12% eU₃O₈

R-2005-1 (Quincy)            1280.5 - 5.5 - 0.48% eU₃O₈  (max. 1.04% eU₃O₈)

1402.0 - 47.5 - 0.15% eU₃O₈

*  Depths to bottom of zone. Thickness are true thickness.

The Rose Project reverted back to U1 in 2011.

About the Agreement

Under the terms of the Agreement, VANE Minerals will manage exploration of the project and expenditures will be shared equally with U1.  Upon outlining a 1.0 million pounds eU₃O₈ NI43-101-compliant resource, VANE Minerals 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 Minerals 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 will be operated separately from the existing VANE-U1 joint venture.

Steve Van Nort, CEO of VANE Minerals said; "The Rose project represents an opportunity to add another deposit to our uranium portfolio quickly along with Wate.  We are encouraged that all three of the initial exploration holes drilled on the project encountered +1% eU₃O₈ mineralization as this is unusual in breccia pipe exploration given the characteristics of breccia pipes which can often present drilling challenges.  We look forward to exploring this exciting project further."

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 joint venture, is responsible for the contents of this press release.

For further information, please contact:

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

Laurence Read/ Graham Herring

 

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