Rose Petroleum plc

Mexico quarterly operations update

20-February-2013

Mexico quarterly operations update - 1 October to 31 December 2012 ("Q4")

VANE announces a production update from its gold and silver operations in Mexico which are operated by its wholly-owned subsidiary, Minerales VANE S.A. de C.V.

Highlights

  • Total revenue for Q4 up by 74.0% to US$2,411,318 (Q3 2012: US$1,385,889)
  • Direct production cost reduced by 14.2% for the quarter at $688 per oz. Au equivalent or $13.2 per oz. Ag equivalent (Q3 2012: $802 per oz. Au equivalent or $14.5 per oz. Ag equivalent)
  • 1,154 oz. Au and 17,830 oz. Ag produced in Q4 (Q3 2012: 979 oz. Au and 19,100 oz. Ag)
  • 7,856 tonnes of ore processed during Q4 (Q3 2012: 7,841 tonnes) with average grades 6.36g/T Au and 96g/T Ag (Q3 2012: 5.36g/T Au and 105g/T Ag)
  • Average recovery rate of 79.5% Au and 77.7% Ag (Q3 2012: 76.8% Au and 76.5% Ag)
  • 34.9 tonnes of concentrate and 38.4kg of precipitates produced from the Merrill Crowe facility held in inventory at period end (Q3 2012: 62.6 tonnes; 38.4kg)
  • All gold and silver sold unhedged

Revenues for Q4 were in line with management expectations and are substantially higher than in the prior period. All of the revenue generated in Q4 originated from our joint venture with MET-SIN.

VANE has also adapted the crushing and processing facilities attached to its Merrill Crowe plant to increase its day to day processing capability by 20%, such that it is now able to process up to 3,000 tonnes per month and expects production volumes to grow accordingly.

Commenting today, David Newton, CEO of VANE said: "These results are very pleasing and demonstrate the consistency of production and revenues that are being generated. We look forward to 2013 with confidence and expect our Mexican business to continue to perform strongly as a result of the increase in processing capacity."

Kristopher K. Hefton, BSc Geology, Chief Operating Officer VANE Minerals plc who meets the criteria of a qualified person under the AIM Rules - Note for Mining and Oil & Gas Companies, has reviewed and approved the technical information contained within this announcement.