Rose Petroleum plc

Announcement of maiden NI 43-101 resource statement at Wate Uranium Breccia Pipe

1-March-2010

Announcement of maiden NI 43-101 resource statement at Wate Uranium Breccia Pipe

Highlights

The SRK resource estimation completed to update the VANE breccia pipe project NI 43-101 report dated October 2007, concluded the following on the Wate breccia pipe, Arizona:

  • Inferred resource of 695,000 pounds of eU3O8 contained in 43,000 tons with an average grade of 0.80% eU3O8 at a cutoff grade of 0.20% eU3O8
  • The weighted average grade from VANE’s six drill holes used in constructing the model is 0.87% eU3O8 using a cutoff grade of 0.20% eU3O8

VANE Minerals today announces that SRK Consulting (U.S.) Inc. (“SRK”), as part of the work to update VANE’s NI 43-101 technical report on its Northern Arizona Uranium Breccia Pipe Exploration Project, has completed the resource estimation for the Wate breccia pipe in Arizona. The project is within the VANE-Uranium One Exploration U.S.A. Inc. joint venture (JV) in which the Company’s wholly-owned subsidiary, VANE Minerals (US) LLC, holds a 50% interest.

SRK determined an inferred resource of 695,000 pounds of eU3O8 contained in 43,000 tons with an average grade of 0.80% eU3O8 at a cutoff grade of 0.20% eU3O8 from the model for that portion of the mineralized pipe where drilling data are available, which represents roughly 60% of the original Rocky Mountain Energy (“RME”) model.

The resource model was developed from data from six drill holes logged by VANE and from limited data from six historic holes completed by the previous lessee, RME. The resource is contained in 4 zones of mineralization delineated in the portion of the pipe from 1200 feet in vertical depth to 1520 feet in depth, largely within and along the margins of a breccia pipe that has a diameter which varies from 110 ft to 160 ft. Some sub-horizontal character is present in at least one high-grade zone (160 ft across the pipe by ~40 ft vertical thickness).

The interpretation and outlining of mineralization was conducted in cross-section, using Leapfrog software, by incorporating geological, structural and assay information to form 3-D wireframe shapes of mineralized domains. Interpolation of grade to populate the block model within domain wireframes was carried out using an inverse distance power method and a dynamic anisotropy search option using Datamine Studio 3 software. Interpolation and CIM compliant resource classification parameters were developed by SRK to NI 43-101 reporting standards.

SRK further stated in the report; “It is reasonable to assume that the historically estimated conservative case resource of 70,250 tons @ 0.80% U3O8 for 1.124M lbs is likely there, if the remainder of the historical drillhole data were available to define the entire volume of mineralization”. Rocky Mountain Energy completed its estimates in 1991 based on 17 drill holes historically referred to as “ore holes” with a cutoff grade of 0.15% U3O8 The weighted average grade from VANE’s six drill holes used in constructing the model is 0.87% eU3O8 using a cutoff grade of 0.20% eU3O8.

Allan V. Moran, Principal Geologist, and Frank Daviess, Associate Principal Resource Geologist, both with SRK Consulting (U.S.) Inc., are independent Qualified Persons as defined by NI 43-101, prepared the current resource estimate.

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.

Steve Van Nort, VANE’s CEO commented: “The results of SRK’s model construction, resource calculation and conclusions will allow VANE and our partner, Uranium One Exploration U.S.A. Inc., to advance the commercialization of the Wate deposit. The full NI 43-101 Report, which is now near completion and according to NI43-101 rules will be released within the next 45 days. The next step in the process is to update the pre-feasibility study completed by Rocky Mountain Energy (1991) and the State of Arizona (1998) and to finalize the mineral lease agreement with the State of Arizona. This process is scheduled to take up to12 months. Once the lease agreement is signed, development can begin which would include detailed drilling of the orebody from underground via a development shaft and the laying out of the mining operation.

In conjunction with this development plan for the Wate orebody, work will continue to create a “pipeline of projects” from other joint venture targets, specifically Tank 4-1/2, Miller and also projects added to the JV in the recent Neutron Energy Inc. property package acquisition. The breccia pipe district is estimated by the USGS to contain in excess of 2 billion pounds of U3O8 with a gross value of US$90 billion at $45/lb U3O8. With the JV’s portfolio of pipe targets now standing at around 160, a conveyor belt of project evaluations leading to production is planned and would result in a stable domestic fuel supply, even at current uranium prices, for the growing US nuclear power industry which currently imports 90% of its annual uranium requirements. The VANE shareholders are in a prime position to capitalize on this considerable resource”.

 
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