18th Feb 2005 07:02
Vane Minerals PLC18 February 2005 VANE Minerals plc Initial Assay Results Show Strong Mineralisation At Mina Charay Property VANE Minerals ("VANE" or "the Company") announces encouraging assay results fromthe first phase of its drilling programme at the Mina Charay gold / silverproperty in Sinaloa, Mexico. Assays from the seven drill holes recentlycompleted indicate the presence of a high grade mineralised vein, with gradesranging 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 andintends to carry out further drilling. Mineralisation, alteration and metal values show a distinct increase along thevein moving from east to west. A VLF (Very Low Frequency geophysics) surveysuggests that the vein is offset to the north. Hole 6, intended to offset to thewest the strong mineralisation in hole 1, was inadvertently collared on thesouth 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 fromwhich VANE has obtained gold values in shallow pits, suggestive of bulk grademineralisation. In order to allow time for the additional drilling, the Company has negotiatednew terms with the property owner, Minera PAFEX, S.A. de C.V., postponing theJanuary US$75,000 option payment until July 2005, with a US$20,000 payment duenow, a further US$10,000 in May and US$10,000 in June. The Company still retainsthe right to withdraw from the property at any stage with no further financialobligation. Full details of the original schedule of option payments can befound on VANE's website (http://www.vaneminerals.com). Half of the sawn drill core from the vein was bagged and shipped to JacobsLaboratories in Tucson, Arizona for analysis and the remainder of the core hasbeen stored on site. Core recovery during the current programme has beensatisfactory. Holes are numbered from 5 to 1 moving from east to west. Hole No.6, intended to offset Hole 1, is located west of Hole 1. Mina Charay Drilling Programme: Assay Results Hole Intersection From To Width Au g/t Au oz/t Ag g/t Ag oz/t (m) (m) (m)MCDDH 01_01_1 17.7 18.3 0.6 5.59 0.163 185.1 5.4MCDDH 01_A_1 25.6 26.5 0.9 36.82 1.074 706.2 20.6 01_A_2 26.5 27.5 1 13.3 0.388 130.3 3.8 01_A_3 27.5 28.5 1 25.88 0.755 75.4 2.2 01_A_4 39.7 40 0.3 0.31 0.009 24 0.7 MCDDH 02_01_1 6.2 7.2 1 8.5 0.248 29.1 0.85 02_01_2 7.2 8.2 1 2.4 0.07 39.4 1.15 02_01_3 26 26.7 0.7 9.26 0.27 29.1 0.85 02_01_4 26.7 27.4 0.7 10.94 0.319 32.6 0.95 MCDDH 03_01_1 34 35 1 0.51 0.015 5.1 0.15 03_01_2 51.3 52 0.7 0.48 0.014 17.1 0.5 03_01_3 52 52.75 0.75 3.7 0.108 49.7 1.45 03_01_4 52.75 53.5 0.75 1.51 0.044 20.6 0.6 MCDDH 04_01_1 30.2 30.7 0.5 2.02 0.059 106.3 3.1 04_01_2 31 31.6 0.6 13.09 0.382 140.5 4.1 04_01_3 31.6 32.8 1.2 1.44 0.042 32.6 0.95 04_01_4 32.8 34 1.2 8.95 0.251 37.7 1.1 MCDDH 05_01 Trace only MCDDH 06_01 Trace only Background: VANE entered into an option agreement to acquire Mina Charay in September 2004.The Company believes the prospect could be brought quickly into production andmay therefore offer the potential for generating rapid cash flow. This is inline with VANE's strategy when it acquired the high grade Diablito gold / silverproperty ("Diablito") in Nayarit, Mexico. If successful, cash flow fromproduction at Diablito and/or Mina Charay will enable the Company to expand itsexploration programme and will allow further expansion of its asset portfoliowithout over-extending its resources. Update: The Company also announces that it is in advanced stages of negotiation with amining contractor to develop Diablito and that it expects to be able to make afull announcement on this in the near future. The development plan has beencompleted and first production is expected to be ahead of schedule. At the Company's Guadalcazar property in San Luis Potosi, Mexico, a drilling rigis expected to arrive on site in late February 2005 and drilling is expected tocommence shortly thereafter. Eight drill targets have been initially identified,with a total of 22 holes budgeted. Michael Spriggs, Chairman of VANE, commented, "These encouraging latest drillingresults indicate that, at Mina Charay, Vane Minerals is developinganother potentially significant gold/silver deposit in Mexico. Coupled withthe progress at Diablito and its larger Guadalcazar project, these developmentsprovide further confirmation that the Company remains firmly on track to achievethe objectives set out at the time of its AIM flotation in June last year". Enquiries: VANE Minerals plc Seymour Pierce Limited Parkgreen CommunicationsMatthew Idiens Sarah Wharry Justine Howarth / Cathy Malins020 7667 6322 020 7107 8000 020 7493 3713 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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