Rose Petroleum plc

New Exploration Permits secured and Drilling Underway at Porphyry Copper Targets, USA

27-April-2011

New Exploration Permits secured and Drilling Underway at Porphyry Copper Targets, USA

VANE is pleased to announce that it has been granted new permits for exploration drilling at its Granite Gap porphyry copper target located in southwestern New Mexico. VANE currently has two copper targets fully permitted for exploration drilling and the target portfolio currently includes 23 targets in various stages of evaluation and acquisition.

Highlights

  • Granite Gap drilling permit approval
    • Porphyry copper target located on major US copper mineral belt
    • Drill site construction underway with drilling scheduled to commence in the next few weeks
  • Copper portfolio
    • Yuma King drilling commenced in March - presently at 1,587 feet
    • 2 targets fully drill permitted
    • 2 targets presently in advanced stage of the permitting process

Road access and drill sites are under construction with the drilling contractor anticipated to commence drilling in the next few weeks. The Granite Gap target is held though VANE's 100% wholly owned subsidiary, AVEN Associates LLC.

The Granite Gap target is situated along the productive NE-SW mineral trend that extends from Hillsboro to Bisbee and includes major mines at Chino, Continental, Tyrone and Banner, combined representing more than 22.5 billion lbs of copper. The target is located beneath alluvial cover adjacent to outcrops that exhibit alteration and mineralization typically associated with the margins of porphyry copper systems. Field work commissioned by VANE, in combination with file review and literature search, has identified water wells located several miles down slope from the outcropping lead-zinc mineralization that carry anomalous values of copper and molybdenum. Water in the wells is believed by the Directors to have migrated from the target area. The drilling depth is anticipated by the Directors to be in the region of 300-500 feet.

Drilling commenced on March 25 on the first of two holes planned at the Yuma King copper project. Hole AV-1-11 intersected disseminated copper mineralization - assay results are currently pending. Site preparation, ahead of drilling, is underway at Granite Gap and drilling is scheduled to commence during the next few weeks. Permitting is also presently under way on two additional copper targets and further additional targets are being developed and refined to create a pipeline of drill ready projects.

Clark Arnold, Director of Geology commented, "We believe that Granite Gap is a very promising porphyry copper target and we intend to commence drilling in the next few weeks. I look forward to announcing the results from drilling at this target and Yuma King at the appropriate time. Two targets are also in the advanced stage of permitting with additional targets in the system. The Arizona-New Mexico copper province is a major copper producing region in the US and we believe there is an opportunity for VANE in identifying new, economically viable copper resources that sit at shallow depths beneath post-mineral cover rocks."