Rose Petroleum plc

Proactive Investors Feature

4-September-2006

VANE Minerals: Bright people, right projects, right place - right time?

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On paper, VANE Minerals (VANE) is the closest thing to a perfect mining junior. Since listing in June 2004 the company has not (not even once) come back to the market to raise additional funds, instead VANE put the Diablito Gold-Silver Project in Mexico into production. This is a small operation, which is running at its targeted mining rate of 1500 tonnes per month generating US$450,000 in revenues and US$220,000 of income per month. Cash costs per tonne are US$134, right in the middle of the guidance originally given by VANE of $110-150 per tonne. Diablito currently has a mine life of 5 years but there is scope for expansion.

VANE is also looking at acquiring a flotation mill to reduce costs and give the bottom line a boost - a flotation mill could easily be paid for from current cash flow. VANE's timing couldn't have been much better for Diablito - gold and silver prices have appreciated considerably since 2004. From the start VANE stated it's intention to build a self-funding exploration company - and they have done exactly that!

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