Rose Petroleum plc

Additional Uranium Drilling Intercepts, Wate Pipe, Arizona

18-November-2009

Additional Uranium Drilling Intercepts, Wate Pipe, Arizona

Highlights:
  • 25.5 feet of 0.47% eU3O8 intersected in Hole WT-33 completed to 1500 feet
  • 25.0 feet of 0.22% eU3O8 intersected in Hole WT-34 completed to 1640 feet
  • Results confirm mineralized breccia pipe dimensions over a vertical extent of 286 feet with a horizontal extent of 115 feet
  • Drilling of hole WT-35 in progress
  • NI43-101 compliant resource on target for completion end of 2009
 
VANE today announces further results from the exploration drilling on the Wate breccia pipe in northern Arizona. The project is within the VANE-Uranium One Exploration U.S.A. Inc. joint venture in which the Company’s wholly-owned subsidiary, VANE Minerals (US) LLC, holds a 50% interest.
 
Holes WT-33 and WT-34 were completed to the depths of 1500 feet and 1640 feet, respectively. Hole WT-33 encountered one main mineralized zone grading 0.47% eU3O8 over a thickness of 25.5 feet with maximum grade of 1.00% eU3O8.
 
Hole WT-34 intersected a total of 98 feet of mineralization, within which four intervals contained grades above the 0.10% eU3O8 cutoff grade used in calculations. The main zone has a thickness of 25.0 feet with an average grade of 0.22% eU3O8 with a maximum grade of 0.48% eU3O8.
 
The drilling results continue to provide data to establish the dimensions to the pipe and distribution of the mineralization. The drilling depths to the top and base of the mineralization encountered by VANE to date are 1245 feet and 1531 feet, respectively, for a total vertical extent of 286 feet. Historic data indicate ore-grade mineralization to a depth of 1850 feet giving a total vertical extent of 605 feet. However, VANE’s drilling depths are limited to about 1600 feet in order to focus on the area of the pipe that contains the majority of known mineralization as indicated in the historic data. With respect to the lateral extent of mineralization VANE’s drilling confirms a horizontal dimension of about 115 feet which would also represent the pipe diameter through that interval.
 
The results tabled below continue to confirm the mineralized zones indicated in the historical data held by VANE:
 
Drill Hole WT-33
INTERVAL (ft)
THICKNESS (ft)
GRADE eU3O8
1420.5-1446.0
25.5
0.47%
 
 
 
Drill Hole WT-34
INTERVAL (ft)
THICKNESS (ft)
GRADE eU3O8
1268.0-1293.0
25.0
0.22%
1320.5-1323.0
2.5
0.16%
1483.5-1486.5
3.0
0.19%
1495.0-1502.0
7.0
0.15%
 
Note: A cut-off grade of 0.10% eU3O8 was used in calculating the above intervals. The holes were logged by Geophysical Logging Services.
 
Results in context to historic data
The results are in line with historic data developed during the period 1988 to 1998. The drilling campaign carried out by Rocky Mountain Energy in partnership with Taiwan Power Company consisted of 23 holes all containing uranium mineralization with 17 encountering “ore-grade intercepts” according to the evaluation and appraisal report completed by the Arizona State Land Department in 1998.  This report states three reserve cases (resource as defined in current NI43-101 terms) based on 1998 economics: 
                               
 
TONS
GRADE U3O8
POUNDS U3O8
Conservative
 70,250
    0.80%
   1,124,000
Base
114,872
    0.83%
   1,916,863
Full
146,122
    0.83%
   2,416,863
 
The weighted average grade of the combined intercepts encountered in the five holes VANE has completed to date is 0.80% eU3O8 which compares very favorably with that report. 
 
NI43-101 objective
Operations commenced at Wate in mid-August to verify mineralized zones indicated by historical data, as part of the programme to produce a NI43-101 resource report. The report will be compiled by SRK Consulting and is on schedule to be completed by year end.
 
 Previous significant drill intercepts at the Wate project were reported by the Company in the 2 February 2009 and 7 September 2009 Press Releases.
 
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Kristopher K. Hefton, Chief Operating Officer VANE Minerals (US) LLC, BSc Geology, who meets the criteria of a qualified person under the AIM Rules - Guidance for Mining, Oil and Gas Companies, has reviewed and approved the technical information contained within this announcement.
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Steve Van Nort, VANE’s CEO commented: “These new drilling results confirm the presence of significant high grade uranium zones as indicated in historic data. VANE is near completion of the drilling programme and on target to have all data independently assessed by SRK Consulting in order to produce a NI43-101 compliant resource by the end of the year. Once a compliant resource has been established we will be able to assess the viability of cost effective mine development at Wate.”
 
 
 
For further information, please contact:
VANE Minerals Plc
+44 (0) 20 7667 6322
Matthew Idiens
 
 
Arbuthnot Securities
+44 (0) 20 7012 2000
John Prior /Richard Johnson
 
 
Threadneedle Communications
+44 (0) 20 7653 9850
Laurence Read/ Beth Harris