Rose Petroleum plc

Investors Chronicle

11-May-2007

Investors Chronicle - 11.05.07

UP UNTIL THE END OF 2006, VANE'S SHARE price was struggling to get into double figures, even though the company had started to mine silver at its wholly-owned Diablito narrow-vein mine in western Mexico. Then, in December 2004, when the price of uranium was at $19 a lb, Vane sta rted to peg uranium stratabound acreage in eastern Utah and south-west Colorado, and higher- grade Breccia pipes in northern Arizona.

Following accidents at Chernobyl and Th r e e Mile Island, uranium had become an unloved mineral. But now, with improved safety and zero emissions, uranium has hit the global warming jackpot, with a price well over $100 a lb. The US currently has over 100 nuclear reactors providing a fifth of its electricity - and substantial new nuclear capacity is expected to be in place by 2020.

However, it is the Breccia pipes that could make Vane its fortune. It has 32 targets to explore and expected 1 per cent grades would be the richest in the US to date. Pr e l i m i n a rydrilling down to around 1,500 ft has already started.