Uranium Update

RNS Number : 5850M

Vane Minerals PLC

02 February 2009

 



2nd February 2009

VANE Minerals Plc ('VANE' or the 'Company')

High Grade Uranium Intercepts and New Results, Arizona and Utah

VANE Minerals Plc today announces new exploration results from its uranium projects located in Arizona and Utah. The projects are held by the Company's wholly-owned subsidiary, VANE Minerals (US) LLC.

Highlights 

• High-grade intercepts at the Wate breccia pipe in northern Arizona

  • 30.5 feet of 1.87% eU308, including 12 feet of 3.67% eU308 

  • Historic data indicate a resource of 1.9mm lbs of U3O8 in rock grading 0.83% U3O8 

• Drilling at the Tank 4½ Pipe in northern Arizona intersects mineralization

  • Best mineralized zones: 1305.0 to 1311.0 feet and 1683.5 to 1691.5 feet that contained 6.0 feet of 0.07% eU308 and 8.0 feet of 0.07% eU308, respectively.

• Positive results from the Happy Jack drilling program in Utah 

  • 7 holes reached resource grade and verified mineralization indicated in historic data 

NORTHERN ARIZONA BRECCIA PIPE DISTRICT 

VANE Minerals (US) LLC - Uranium One Exploration U.S.A. Inc. Joint Venture

Wate Pipe

VANE's logging results from two holes drilled by the previous owner (Rocky Mountain Energy) confirm historic data made available to VANE. Included in the historic data is a report completed by an outside consulting firm, Headquarters West ltd, in 1998 based on data generated by Rocky Mountain Energy which states a 'base reserve' of 1.9mm lbs of U3O8 in ore grading 0.83% U3O8.  

The purpose of VANE's program is to verify the historic data and take the 'base reserve' to an NI 43-101 compliant resource. Additional data are being sourced; however, washing out additional holes and drilling new holes may be required by our independent consultants, SRK Consulting (Tucson). 

Several old drill holes were found during VANE's initial assessment of the property.  VANE washed out three of these holes which were then logged by two independent contractors prior to operations being shut down for the winter period. The most encouraging results were found in hole WT-5 where, within the main mineralized zone of 30.5 feet that averages 1.87% eU308, 12 feet averages 3.67% eU308 and within that zone 2.5 feet averages 6.00% eU308. The remaining 18.5 feet peripheral to the 12-foot high-grade zone averages 0.61% eU308.

Following are the results:

Hole WT-2    Barren 

(TD 1600ft)

Hole WT-5    1486.5-1517.0 feet, 30.5 feet grading 1.87% eU3O8   (Century Wireline Services)

(TD 1822ft)    1484.0-1514.5 feet, 30.5 feet grading 1.63% eU3O8  (Geophysical Logging Services)

Hole WT-7    1245.0-1252.5 feet, 7.5 feet grading 0.55% eU3O8  (Century Wireline Services)

(TD 1660ft)    1243.0-1250.5 feet, 7.5 feet grading 0.56% eU3O8  (Geophysical Logging Services)

N.B. The differences between the contractors' grade results are mainly due to different sodium iodide crystal sizes that react differently in higher-grade uranium.  The Century probe carries a larger crystal that allows for more accurate measurements in higher grade intervals.

Tank 4½ Pipe 

The Tank 4½ Pipe had undergone drilling by previous holders as evidenced by drill cuttings on the surface. VANE's initial efforts to acquire historic data were not successful and therefore a program was initiated to evaluate the project by drilling.  VANE's initial hole, 997-1, was positioned in the inferred center of the holes found.  

Hole 997-1 was completed to the depth of 1940 feet. Results summary:

• Best mineralized zones were 1305.0 to 1311.0 feet and 1683.5 to 1691.5 feet that contained 6.0 feet of 0.07% eU308 and 8.0 feet of 0.07% eU308, respectively.

• Strong anomalous zones: 1134 to 1353 feet, 1516 to 1546 feet, and 1678 to 1694feet.  

• Numerous weak anomalous zones: 950 to 1130 feet, 1586 to 1587 feet, 1604 to 1605 feet, 1748 to 1769 feet.

• The hole exited the pipe somewhere below 1353 feet

Following the completion of hole 997-1, VANE succeeded in obtaining some limited but detailed historic data by Union Pacific Resources on the project in 1990 which revealed several mineralized holes including historic hole FO-9 that reportedly intersected 48.5 feet grading 1.41% eU308 from 1346.0 to 1394.5 feet.  Collar locations of several of the old holes were subsequently located based on the data obtained and these holes are being considered for re-entry. The rig has been moved to the Wate Pipe while the next drilling stage is evaluated at Tank 4½.

UTAH STRATABOUND URANIUM PROJECTS

VANE Minerals (US) LLC

Happy Jack Mine

The program was designed to investigate three areas of mineralization as indicated in historic data.  Results of the 22-hole program included 19 holes completed through the target horizon while 3 holes encountered unmapped mine workings. The results were positive as 7 of the 19 holes completed reached resource grade and verified mineralization indicated in historic data. The project continues to be evaluated for further work. The following table presents the radiometric results from Century Wireline Services:  

					Probe Results		Downhole Survey
Hole		Drill Depth		Depth to	Thickness	Grade	Distance	Direction
Number		Feet		Bottom	Feet	% eU3O8	Feet	Azimuth
HJA-1		275		245.0	Workings		7.8	129
HJA-2		280		245.0	2.0	0.06	50	74
HJA-3		270		247.0	2.5	0.07	12.4	70
HJA-4		270		244.5	1.5	0.21	13.6	83
				249.5	1.0	0.32
HJA-5		275		250.5	4.0	0.19	9.3	97
HJA-6		130		97.0	1.5	0.09	1.2	357
HJA-7		140		106.0	3.5	0.14	0.4	124
HJA-8		130		95.5	1.0	0.08	0.2	340
HJA-9		280		249.0	1.5	0.11	0.3	110
HJA-10		290		257.5	1.0	0.10	2.7	92
HJA-11		280		257.5	1.0	0.06	4.2	72
HJA-12		280		247.5	1.0	0.05	0.9	140
HJA-13		250		245.0	Workings
HJA-14		248		245.0	Workings
HJA-15		270		247.5	1.0	0.06	1.4	229
HJA-16		280		249.0	2.5	0.15	13.6	58
HJA-17		300		246.5	1.5	0.10	12.7	43
HJA-18		300		246.0	2.0	0.24	12.3	63
HJA-19		280		248.0	2.0	0.27	10.7	85
HJA-20		280		246.5	1.0	0.10	9.4	67
HJA-21		140		103.5	1.0	0.10	1.2	59
HJA-22	140			105.0	1.5	0.39	0.8	166

Note: Drill holes in bold reach resource grade status of minimum grade-thickness product (GT) of 0.20 at cutoff grade of 0.05% eU3O8. 

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.

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Commenting today Steve Van Nort, CEO of VANE Minerals, said:

'The high grades reported at the Wate Pipe confirm the value of our breccia pipe portfolio which we have worked hard to build. We are now moving towards establishing an NI43-101 compliant resource. 

With the resurgence of nuclear power globally and in particular as a critical clean power source in the US in years to come, the importance of a stable US uranium supply cannot be underestimated. The USGS has estimated that the region in which we operate holds approximately 42% of the total US uranium resources. History has proven that these high grade breccia pipe deposits are environmentally friendly and can be successfully mined because of the pipes' physical characteristics, small footprint located well above the water table, and a short mine life, making the area vitally important to the self-sufficient green power generation plans of the US.'

- END -

For further information, please contact:

VANE Minerals Plc	[phone]
Matthew Idiens
Ambrian Partners Limited	[phone]
Richard Brown
Thomas Weisel Partners	[phone]
Paul Newman
Threadneedle Communications	[phone]
Laurence Read/Beth Harris	[phone]

Notes to Editors:

VANE Minerals is an exploration company, with a cash flow, financed in part by production from the silver/gold Diablito Mine and mill in Western Mexico. The Company has assembled a highly qualified and experienced management team with a proven track record in exploration and development. VANE now has projects in Mexico, Paraguay and the US, incorporating exposure to gold, silver, copper and uranium. The Company's principal objective is to utilise the funds generated from Diablito to identify and explore undervalued and under-explored projects, create value in those projects and realise that value through exploitation or disposal to third parties.  For further information, please visit www.vaneminerals.com.

 

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