Diablito gives Vane confidence for 2006
LONDON (SHARECAST) - Vane Minerals edged ahead this morning as it said the Diablito silver-gold mine in Mexico is currently providing gross revenues of some $420,000 per month.
Diablito is producing at a rate of approximately 1,500 tons per month, with current indicated, measured and inferred resources sufficient to sustain production at this rate for more than five years.
A drilling campaign due to start in the second quarter is designed to expand the resource down dip to the south as well as exploring offset portions of the vein along strike to the east and west.
The AIM listed group reported revenue for the 12 months to 31 December of £286,000 and a pre-tax loss of £928,000, out from almost £600,000 a year ago.
Significant progress has also been made in securing exploration rights for uranium properties in the US, it added, while a new drilling programme is to begin shortly at Guadalcazar.
Initial drilling has indicated a strong, multiple vein system at the Mina Charay project, while mineral investigation permits have been granted in Paraguay.
Chief executive Steven Van Nort said, "2005 was a transformational year for the company as we made the move from being a pure exploration company to being a producer, with the successful development of our first gold and silver mine in Mexico."
"We are now in an enviable position, combining the cash flow of our producing operation with an exciting exploration portfolio, offering exposure to gold, silver, copper and uranium."
"We are proving our ability to deliver on our objectives and we look forward to further successful progress in 2006 with confidence," he added.