Rose Petroleum plc


VANE Holdings in option agreement to buy Mina Charay prospect

VANE Holdings PLC said it entered into an option agreement with Minera PAFEX SA de CV to buy the Mina Charay gold and silver prospect in western Mexico.

The option agreement provides for payments of 5,000 usd a month up to December 2004 and further incremental staged payments potentially resulting in a final payment of 2 mln usd in January 2007 to own the prospect outright.

VANE said it planned a drilling and sampling programme on the prospect to take place throughout October and November 2004 and expects to announce the results early in the new year.

"The directors of VANE are very encouraged by early sampling results from the site which indicate significant grades of gold and silver," it said.

VANE also said the drilling programme at its Diablito property in Mexico has been undertaken and is progressing well and that it expects to release the results "imminently".