Rose Petroleum plc

World Gold

23-November-2004

Vane increases Latin America exploration portfolio

AIM-listed Vane Holdings has acquired the exclusive mineral rights to three large blocks of land covering an area of approx 3,800 km2 near to the Brazilian border in south-eastern Paraguay. 

Vane will hold the three blocks as ?Investigation Permits? (valid for one year).They are located in a relatively under-explored corner of the mineral-rich Brazilian Pre-Cambrian Shield, which has historically proved rich in gold and a number of other mineral commodities.

Previously a two year programme of extensive surveying and stream sediment sampling outlined 15 distinct gold anomalies, all of which are significant in size.

Meanwhile, in Mexico, VANE has identified drilling targets on its Guadalcazar project and will commence a drilling programme in the first quarter of 2005.

Also in Mexico, VANE recently acquired an option to purchase the Mina Charay gold-silver prospect in the State of Sinaloa. The company intends to fast track development of this project, which already contains known gold and silver mineralisation, and will begin a  six-hole drilling programme as soon as a drilling rig can be mobilised.

Finally, at its most advanced project Diablito, in Nayarit State, Vane has completed the second phase of infill and offset drilling to upgrade the status of the mineral resource. Forty-two holes have now been drilled in an area 450 m by 100 m to test the shallowlydipping vein on a 12.5-25 m grid.

When all assays are available, Independent Mining Consultants of Tucson will compile the data in order to develop a mining plan for Diablito by year-end.

Vane plans to put the Diablito prospect into production by early 2005 in order to finance exploration costs for the other projects.