Rose Petroleum plc

AFX News


Vane agrees new uranium projects in US; Choix copper prospect disappoints


LONDON (AFX) - Vane Minerals PLC said it has agreed to additional uranium projects in the Colorado Plateau Uranium District of the United States.

Vane also announced today that assay results from the six holes completed in December 2005 at the Choix copper prospect in the State of Sinaloa, Mexico, have been received. It said these results are 'disappointing' and indicate that the strongly mineralised porphyry outcrops at surface lack 'roots' and are actually isolated xenoliths or blocks 'floating' upon the underlying batholithic rocks.

At the Colorado Plateau Uranium District, the group has entered into an agreement with private company Happy Jack Minerals covering the Happy Jack Mine and surrounding claims located in San Juan County of south-eastern Utah.

Under the agreement Vane has agreed to submit an exploration plan within 6 months of the date of the agreement.

It said it will commence exploration within 6 months of the plan being approved by the local authorities and commit a minimum of 75,000 usd within 12 months of starting exploration.

The company will also commit a further 125,000 usd to surface and underground exploration annually from the end of the initial work commitment to mine feasibility commencing.

If production does not begin, 100,000 usd shall be payable for the further 5 year term.

Vane will pay an initial payment of 10,000 usd to the owners of the Happy Jack Mine. A further payment of 10,000 usd at the end of the initial work commitment will be paid in the event VANE elects to continue with the agreement. On completion of the second work commitment, Vane will pay 20,000 usd and 30,000 usd will be paid on completion of the third work commitment.

When production is reached, Vane will pay a production royalty of 5 pct onminerals mined from within the original areas held by the owner, and a production royalty of 2.5 pct on minerals mined from the additional areas claimed.

Turning to the outlook, the company said its conviction in the continuing strategy of testing a large number of attractive targets quickly and inexpensively remains unshaken. The company is confident that tests of a number of similar future prospects will provide a high probability of success.