Vane Minerals Says Mill May Boost Diablito Capacity
By Danielle Rossingh
Jan. 15 (Bloomberg) -- VANE Minerals Plc, a U.K.-based gold and copper producer, said a new mill at its Diablito mine in Mexico may boost production capacity by 16 percent.
"It will also reduce costs enormously," by about $25 per ton, Idiens said. Cash costs at Diablito currently stand at $125 a ton, according to the company's Web site.
VANE, founded by the former exploration team of Freeport- McMoRan Copper & Gold Inc., began mining at Diablito in west- central Mexico in May 2005. The company also has silver, copper, gold and uranium projects in Mexico, Paraguay and the U.S.
Shares of VANE gained 1.25 pence, or 10 percent, to 13.25 pence in London. The stock climbed after the company said it had started drilling at its North Wash uranium project in Utah.
There is a "colossal shortage" of uranium which will continue to boost prices, Idiens said.
Uranium prices have doubled in the past year to $72 a pound, according to Metal Bulletin, as demand from nuclear power plants strengthened.