Initial Assay Results Show Strong Mineralisation At Mina Charay Property
VANE Minerals ("VANE" or "the Company") announces encouraging assay results from the first phase of its drilling programme at the Mina Charay gold / silver property in Sinaloa, Assays from the seven drill holes recently completed indicate the presence of a high grade mineralised vein, with grades ranging as high as 36.82g of gold (?Au?) per tonne and 706.2g of silver (?Ag?) per tonne. VANE has followed up this programme with further geophysical work and intends to carry out further drilling.
Mineralisation, alteration and metal values show a distinct increase along the vein moving from east to west. A VLF (Very Low Frequency geophysics) survey suggests that the vein is offset to the north. Hole 6, intended to offset to the west the strong mineralisation in hole 1, was inadvertently collared on the south side of the nearly vertical vein and consequently failed to intersect it. In addition, there is a large area of shallow cover located to the west from which VANE has obtained gold values in shallow pits, suggestive of bulk grade mineralisation.
In order to allow time for the additional drilling, the Company has negotiated new terms with the property owner, Minera PAFEX, S.A. de C.V., postponing the January US$75,000 option payment until July 2005, with a US$20,000 payment due now, a further US$10,000 in May and US$10,000 in June. The Company still retains the right to withdraw from the property at any stage with no further financial obligation. For further details of the Mina Charay property click here, and for details of the original option payment schedule click here.
Half of the sawn drill core from the vein was bagged and shipped to Jacobs Laboratories in