Guadalcazar and Uranium Portfolio Update
VANE Minerals Plc ("VANE" or "the Company") today announces that the analytical results for the recent seven-hole programme, GZR 06-13 to 06-19, at Guadalcazar, Mexico, have been received and interpreted. These results reconfirm the highly anomalous concentrations of gold and silver throughout the hydrothermal system that occupies an area 6km by 2km in the Guadalcazar Basin. Tabulation of the results can be viewed below.
The results of recent drilling represent a measurable improvement from those previously reported following the 2005 drill programme. However, further drilling is required in order to define economically viable mineralisation.
It is the opinion of the VANE Board that the system constitutes an exploration target worthy of considerable additional explorative drilling. However, the exact genesis of the gold and silver found at the deposit remains only partially understood. In view of the commitment necessary to test thoroughly the extensive target, the VANE Board believes that this additional exploration should be undertaken via a joint venture with another precious metals exploration company. VANE is currently approaching several companies in this regard.
VANE has agreed with the Guadalcazar property owner that all property payments will be temporarily suspended during the time required to set in place a suitable joint venture arrangement.
This strategy will ensure that VANE's resources can be focused towards funding the drilling on the Company's portfolio of uranium projects in the south-western region of the United States. Following the recently announced receipt of drilling permits, drilling at the Miller and Red Dike breccia pipes in Arizona is expected to commence, weather-permitting, in early December, with a further programme to commence on the North Wash project in south-eastern Utah in mid December.
VANE has deep hole drill data on the five deep holes drilled on the Miller pipe by Energy Fuels Nuclear Inc. in 1986, before drilling ceased due to the deteriorating uranium market. Four of the five holes intersected uranium mineralization at depth.
Key intercepts included:
- Hole Number 1640-5 contained a mineralized zone of 26.5 feet averaging 0.51% U3O8 starting at a depth of 1,269 feet, with grades up to 1.47% U3O8.
- Hole Number 1640-3 contains a mineralized zone of 25 feet averaging 0.34% U3O8, starting at 1,260.5 feet, with grades up to 1.78% U3O8. Within this interval is a 10-foot zone that averages 0.57% U3O8.
The Red Dike project has had historic shallow drilling which has confirmed the 'breccia pipe' status and VANE is planning to deep drill this pipe to test for mineralisation.
Michael Spriggs, Chairman of VANE Minerals, said:
"It is our intention to carry out further exploration of Guadalcazar with a joint venture partner as we feel this is this is the best way to optimise VANE's resources. Guadalcazar is a major project in terms of its size and potential and we believe that working with a joint venture partner is prudent and appropriate at this time. Our uranium portfolio has grown dramatically over the last 12 months at a time when the uranium market has continued to go from strength to strength. Our strategy for the development of Guadalcazar will therefore enable management and financial resources to focus on the fast track of our uranium assets and our first drilling programmes begin imminently."
Clark Arnold, PhD Geology, who is Director of Geology for VANE Minerals and who meets the criteria of a qualified person under the AIM Guidance Note for Mining, Oil and Gas Companies, March 2006 has reviewed and approved the technical information contained within this announcement.
About VANE Minerals:
VANE Minerals was founded by the former international exploration team of Freeport McMoRan Copper & Gold Inc., one of the world's largest producers of copper and gold. The team negotiated exclusive access to Freeport-McMoRan's global exploration database, made up of 7,000 plus files generated over nearly 100 years of exploration and, following the review of these files, VANE is ideally placed to capitalise on project acquisition opportunities. The Company has assembled a highly qualified and experienced management team with a proven track record in exploration and development, who have spent their entire careers searching for and defining large scale mineral deposits.
The Company is using the revenue generated by the Diablito mine to help fund exploration work across its attractive portfolio of uranium, gold, silver, and copper projects in the US, Mexico and Paraguay .
|Gold Values (ppb)||Silver Values (ppm)|
|Hole No.||Depth (m)||No. Samps.||Max.||Min.||Avg.||Max.||Min.||Avg.|
|Mercury Values (ppb)||Tin Values (ppm)|
NA for '06 Drlg
NA for '06 Drlg
|Value of Avg. Metal Content ($/T)|
|Hole No.||Gold||Silver||Mercury||Tin||Total ($/T)|
|Total||Avg. Value per ton||$3.52|
All averages are non-weighted. Metal prices as of October 2006
Values in bold represent average of Mercury and Tin values obtained from earlier 2005 drilling.