Increase of Inferred Resource at WATE Pipe, Arizona, USA and commencement of development stage
- Inferred Resource increased by 26% to 1.123M lbs eU3O8
- Operating Agreement signed for Wate Mining Company LLC
- Project moves to development stage
VANE is pleased to announce that SRK Consulting, Inc. has completed the update of the NI 43-101 resource model on the Wate project based on the drilling results as announced 8 Feb 2011. The Inferred Resource is now 1.123M lbs eU3O8 contained in 80,000 tons with an average grade of 0.70% eU3O8, an increase of 26%. The Wate uranium breccia pipe project is located in northern Arizona and held in the joint venture with Uranium One Exploration U.S.A. Inc. (“U1”) and the Company’s wholly-owned subsidiary VANE Minerals (US) LLC. The new resource total successfully completes the goal of reaching a minimum of 1M lbs eU3O8 to move the project to the development phase. The revised NI43-101 report reflecting the new resource model is due for completion in late March and will be posted on the Company’s website.
Further to this, VANE and U1 have signed an Operating Agreement for the Wate Mining Company LLC, under which development and production will be governed. Current operations consist of core drilling to obtain material for metallurgical testing and progress toward obtaining the Mineral Lease from the State of Arizona. This work is being carried out under the direction of U1.
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. VANE Minerals, as operator of the joint venture, is responsible for the contents of this press release.
Steve Van Nort, CEO of VANE Minerals plc commented, "We believe that this is a defining moment for the Company as we now have a NI43-101 compliant resource in excess of 1M lbs U3O8. This high-grade breccia pipe has sufficiently strong economics to warrant moving into the development stage. We look forward to working with our partner, Uranium One, in progressing both this and our extensive portfolio of pipe targets, which we are continuing to explore, and we look forward to the government’s decision on the segregated lands which is anticipated to be released in late July 2011. We feel that the recent strength of the U3O8 spot price gives a clear indication that demand is building."