Rose Petroleum plc



VANE Minerals says encouarging drilling programme completed at Diablito

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LONDON (AFX) - VANE Minerals PLC said its 100 pct owned Mexican subsidiary, Minerales VANE SA de CV, has recently completed an encouraging drilling programme at its high grade Diablito silver-gold mine, in Nayarit State, Mexico.

The Diablito mine commenced production from the Main or Lower Vein in November 2005 at a daily rate of 50 tonnes per day and is currently generating 420,000 usd of income per month, with a total mining, processing, transportation and smelting cost of 125 usd/t, the company added.

The company expects drilling work to be completed in September and will then review the mine plan with the intention of increasing the daily production rate.

VANE also said that, in order to facilitate the additional production and generate cost savings, it is in discussion with financiers to provide a convertible debt facility for the construction of its own mill and flotation plant near the project site.

VANE chairman Michael Spriggs said the group is very encouraged by the results of this drill programme and it is confident that the additional resources will more than replenish that which has been mined to date.