Acquisition of Porphyry Copper Prospect

RNS Number : 5979Q

Vane Minerals PLC

08 November 2012

 



VANE Minerals plc (AIM:VML)

("VANE" or the "Company")

Acquisition of Porphyry Copper Prospect - Mineral District, Idaho

VANE Minerals plc, through its 100% owned USA subsidiary, AVEN Associates LLC ("AVEN"), is pleased to announce the acquisition of 38 unpatented lode claims in the historic Mineral District, Washington County, Idaho. The district has historic copper, gold and high-grade silver production.

The agreement with Merrill Palmer, claim owner, has a term of 50 years and covers 38 unpatented lode claims within a 72 sq. miles area of interest.  Historic drill log data of that area, dating back to 1969 drilling by Cyprus Mines, revealed a 742 foot drill interval of porphyry copper-style mineralization that averaged 0.17% copper. Samples from the hole were not assayed for silver, gold or molybdenum, but more importantly, no offset drilling of this very anomalous drill hole was ever undertaken. Geologic mapping, as well as sampling of outcrops and mine dumps is currently underway in an effort to refine the porphyry copper/molybdenum/gold/silver drilling target.

The diorite intrusion at Mineral District is similar to that reported by Mosquito Consolidated Gold Mines Limited at their copper-molybdenum project in nearby Boise County, Idaho and is similar in many respects to the British Columbia porphyry copper deposits.

AVEN has a 100% interest in any minerals discovered by paying an annual advance royalty starting at $20,000, to be paid by 31 January 2013.  The royalty increases by $10,000 per year until year eight of the agreement and remains at $100,000 per annum thereafter. The agreement also includes a net smelter return royalty of 3% applicable to all minerals produced and sold from the area of interest. AVEN has the option to reduce the royalty to 1.5%, during the first five years of the agreement, by paying the lessor a one off payment of US$2,000,000. AVEN can terminate the option agreement at any time without penalty.

Kristopher K. Hefton, BSc Geology, Chief Operating Officer VANE Minerals plc who meets the criteria of a qualified person under the AIM Rules - Note for Mining and Oil & Gas Companies, has reviewed and approved the technical information contained within this announcement.

For further information, please contact:

VANE Minerals Plc David Newton CEO VANE Minerals plc	[phone]
Allenby Capital (Nominated Adviser & Joint Broker) Jeremy Porter/Alex Price	[phone]
Northland Capital Markets (Joint Broker) Louis Castro	[phone]
Bankside Consultants Simon Rothschild	[phone]

 

END

 

 

MSCBRBDBBBGBGDR