Rose Petroleum plc

Mexico resource update

25-May-2012

VANE announces an update on its gold/silver resource in Mexico

VANE confirms that it has completed an internal, non NI 43-101 compliant, resource estimate at the La Colorada Mine, part of the existing joint venture with the Ruiz family in Rosario, Mexico.
Highlights

  • Indicated resource of 16,507 tonnes at grades of 6.0g/T Au and 116g/T Ag
  • Inferred resource of 26,953 tonnes at grades of 5.3g/T Au and 144g/T Ag
  • Total indicated and inferred resource of 43,460 tonnes, at average grades of 5.6g/T Au and 133g/T Ag
  • Resource is open at depth
  • No resource work yet undertaken on other mines within the joint venture (Saltito and La Valenzuela). Based on average current production levels of 2,500 wet tonnes per month, this resource has the potential to supply VANE’s SDA Mill for at least the next 17 months.
  • With additional production to come from Saltito and La Valenzuela, VANE has security of supply into the medium term

David Newton, CEO of VANE, commented:

“Whilst this resource estimate was undertaken as an internal project and does not meet the strict requirements of NI 43-101 compliance, it does provide management with confidence that our Mexican operations will continue to produce gold and silver in the medium term and provide the Company with revenue towards the pursuit of its exploration projects in Arizona and New Mexico.”

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.