Rose Petroleum plc

Acquisition of Additional Breccia Pipe Exploration Targets, Uranium Breccia Pipe District, Arizona, USA

1-June-2010

Acquisition of Additional Breccia Pipe Exploration Targets, Uranium Breccia Pipe District, Arizona, USA

 

HIGHLIGHTS
 
  • Significant addition of Arizona state lands into uranium exploration target portfolio
  • 114 targets to evaluate upon receiving exploration permits from state
  • Applications for Arizona state lands not impacted by federal segregation order
  • New targets fall under Uranium One joint venture
 
VANE Minerals today announces a significant addition to its portfolio of breccia pipe exploration targets. The Company’s wholly-owned subsidiary, VANE Minerals (US) LLC, has successfully applied for large tracts of land in the breccia pipe district of northern Arizona. These lands, comprised of State of Arizona Trust Lands, encompass 114 breccia pipe exploration targets. The lands were selected using in-house evaluation techniques using aerial photography and airborne geophysics to identify targets. A total of 95 separate mineral exploration permits (MEP’s), covering approximately 60,000 acres were applied for that cover the 114 targets. The lands were confirmed as open and available by the Arizona State Land Department at the time of application and VANE anticipates receiving the applications within the next 60-90 days, which is consistent with the issuing guidelines from the State Land Department.
 
Currently, VANE is drilling at the Wate Pipe, its lead breccia pipe in Arizona, where the company has successfully delineated a high-grade uranium Inferred resource to NI 43-101 standard. Following completion of that program, which is designed to increase the resource and upgrade it to Indicated, a drilling campaign will commence at the Miller pipe to bring along the conveyor belt of projects.
 
The new targets, announced today, will be prioritized with VANE’s existing targets and exploration drilling programs will be planned and scheduled accordingly. It is also likely that additional targets will be identified during the continued evaluation of the new lands.
 
The new permits are subject to the terms of VANE’s joint venture agreement (JV) with Uranium One Exploration U.S.A. Inc. in which VANE holds a 50% interest. The JV is focusing its effort on state lands which are not affected by the segregation order issued on certain federal lands in the district which has placed severe restrictions on all companies’ ability, VANE and the JV included, to conduct exploration on their projects within those segregated lands.
 
 
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. Uranium One Exploration U.S.A. Inc. expressly disclaims any responsibility for the contents of this press release or its compliance with law.
 
Steve Van Nort, CEO, commented: “This new acquisition greatly augments our exploration portfolio by improving our opportunities for discovery on our ‘non-federal lands’ by increasing our number of targets from 15 to 129 on those lands. We look forward to working on Arizona state lands where discoveries and royalties from subsequent production will contribute to Arizona’s much needed education budget as well as provide opportunities for local employment. The Governor of the State of Arizona has been very supportive of the uranium industry, assisted by the positive experience of having the Palo Verde Nuclear Generating Station operating near Phoenix which is the largest nuclear generation facility in the United States; its three units are capable of generating nearly 4,000 megawatts of electricity, to serve approximately 4 million people. Breccia pipes offer VANE the opportunity to define the presence of valuable high-grade uranium resources that can be extracted with a small mining footprint over a short mine life in an environmentally sensitive district with over 20 years of successful operations.”