Rose Petroleum plc

Dow Jones


VANE Starts Drilling At The Miller Pipe - Breccia, U.S.


LONDON, Jan 30, 2007 (Dow Jones Commodities News via Comtex) --Edited Press Release

VANE Minerals Plc Tuesday announced that its uranium subsidiary, VANE Minerals (U.S.) LLC ("VANE (U.S.)"), has commenced drilling at the Miller Pipe in the Northern Arizona Breccia Pipe District.

This district has historically produced a total of 23 million lbs of uranium oxide ("U3O8") from nine mines until the early 1990's when mining ceased due to falling uranium prices.

VANE has acquired, and presently controls, a 100% interest in 29 pipe targets in northern Arizona.

VANE commenced drilling at the Miller Pipe on 22nd January 2007 and at least 3 holes will be drilled to a depth of approximately 1,700 feet in order to further explore and develop the mineralised area identified by previous owners Energy Fuels Nuclear ("EFN") in 1986.

Drill hole number 1640-5 from EFN's programme penetrated a 26.5 foot zone that averaged 0.51% U3O8 from 1,269ft to 1,295.5ft in which grades as high as 1.47% U3O8 were intersected. Hole 1640-3 intersected a 25ft zone between 1,260.5ft and 1,285.5ft in which grades as high as 1.78% U3O8 were intersected.

One 10 foot zone from this hole also averaged 0.57% U3O8 and the entire interval was found to average 0.34% U3O8.

VANE plans to continue its breccia pipe drilling programme once the current round of drilling is completed on the Miller Pipe.

This will focus on the other three permitted pipe targets; Big Red, Red Dike and Rabbit. Additional drilling permits are pending and it is the intention to ramp up the drilling programme once these permits are approved.

Matthew Idiens, Director of Corporate Development, said, "We are pleased to announce the commencement of our breccia pipe drilling programme. This is the first of 29 targets to be explored all of which we believe offer excellent potential.

"Historically, the mineralised breccia pipes which were mined have each contained between 1 million and 6 million pounds of uranium, with an average of approximately 3 million pounds."

He added, "Production in this area ceased in the 1990's when the spot price of uranium went below US$14 per pound U3O8. However with the current spot price of US$72 per pound, we are well placed to capitalise on the buoyancy of the uranium market."