Rose Petroleum plc

VANE Accelerates Breccia Pipe Uranium Drilling Program, Arizona, USA

9-November-2010

VANE Accelerates Breccia Pipe Uranium Drilling Program, Arizona, USA

HIGHLIGHTS:
  • Two drill rigs operated during this period
  • Five breccia pipe targets tested over past three months
  • One additional drilling permit received and five permits expected within Q4 2010
  • 18 additional drill permits in process
 
VANE Minerals Plc today provides an update on its uranium exploration program on northern Arizona state land projects being operated by the Company's wholly-owned subsidiary, VANE Minerals (US) LLC. Five breccia pipe projects have been drilled over the past three months. Drilling was completed on the Tank 4½, Miller Southwest, and ERG-26 projects and continues on the Miller pipe and Roadrunner target.
 
Miller pipe
At Miller, two holes have been completed and a third is in progress.
Hole 518-1 was completed to 1660 feet and intersected:
1295.5-1296.5ft, 1.0ft, 0.05% eU3O8
1577.5-1580.0ft, 2.5ft, 0.10% eU3O8
 
Hole 518-2 was completed to 1680 feet and encountered the following intercepts:
1379.0 – 1548.5ft, 169.5ft @ 0.01% eU3O8 (max. 0.03%)
1548.5 - 1602.5ft, 54.0ft @ 0.07 eU3O8 (max. 0.13%)
1602.5 – 1647.0TD, 44.5ft @ 0.03% eU3O8 (max. 0.07%)
 
Hole 518-3 is in progress.
 
 
Miller Southwest
At Miller Southwest, the first program of deep holes on the program commenced and three deep holes were completed. The drilling penetrated the pipe at various depths which resulted in the following drill intercepts:
691-3  1313.0ft – 68.0ft – Mineralized including 1344.0 – 10.0 – 0.13% eU3O8
691-4   1246.0ft – 8.0ft – 0.04% eU3O8
1271.0ft – 6.0ft – 0.04% eU3O8
691-5  1271.0ft – 3.0ft – 0.09% eU3O8
 
The results are being evaluated by the Company in order to plan further drilling. Of particular interest to the Directors is the 68ft of mineralization which they believe may indicate higher grade areas within the pipe.
 
ERG-26 pipe
One hole was completed on the ERG-26 breccia pipe target to the depth of 1230 feet. The ERG-26 project is one of the targets in the Neutron Energy Inc. acquisition. The drill results from the one hole are inconclusive. However, additional favorable indicators for the presence of a mineralized breccia pipe include anomalous uranium and a distinct structure at surface which the Directors believe warrant further exploration.
 
Tank 4½ pipe
At the Tank 4½ pipe, one deep hole was completed which encountered several zones of weak mineralization and 1.0ft of 0.06% eU3O8 at 1511.5ft. No further drilling is planned at this time.
 
Roadrunner
The second drill rig is operating on the Roadrunner target where drilling commenced in October 2010. VANE will update the market as results become available.
 
Additional targets
The drilling permit has been received for the Whirlwind target and drilling permits are pending, with approval anticipated in Q4, on the Red Dike pipe and the Brimmer, Javelina, Sagacious, and Typhoon targets. These are a combination of targets identified by VANE, Uranium One, and Neutron Energy, all of which are held within the joint venture (“JV”) with Uranium One.   VANE has “plans of operations” (drilling permit applications) in progress on an additional 18 pipe targets, located on State of Arizona lands. Of these, there are several “blind” targets identified during interpretation of the JV’s airborne VTEM geophysical survey data. “Blind” targets show no surface expression as the surface is covered by thin alluvial sediments which obscure outcrop. VTEM is a relatively new exploration method which has proved successful in detecting hidden pipes within the Arizona Strip District by other explorers.
 
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. VANE Minerals, as operator of the joint venture, is responsible for the contents of this press release.
 
Steve Van Nort, CEO of VANE Minerals plc, commented; "We will continue to build on the results from these five breccia pipe projects and develop our portfolio of uranium targets in northern Arizona. As recently announced, our NI 43-101 uranium resource increase of 27% at the Wate Pipe project is testament to the sustained drilling and exploration work we have undertaken. We hope to replicate this model and aim to identify 1M lbs U3O8 from surface drilling while steps are being taken toward preparing to take the project toward development. Since moving our emphasis to the "state lands", operations are running more smoothly and the State has proven to be supportive of exploration."