Wate Drilling Results

RNS Number : 8015A

Vane Minerals PLC

08 February 2011

 



Press Release

8th-February-2011

VANE Minerals plc

("VANE" or "the Company") (AIM: VML)

New definition drilling results WATE Pipe, Arizona, USA

VANE Minerals is pleased to provide an update on the pre-development work at the Wate uranium breccia pipe project located in northern Arizonaand held in the joint venture with Uranium One Exploration U.S.A. Inc. and the Company's wholly-owned subsidiary VANE Minerals (US) LLC.  Two core holes, WT-39 and WT-41, have been completed with gamma probe results demonstrating, in the opinion of the Board, the continuing strength of this project.

HIGHLIGHTS

·      Hole WT-39,  64.0 feet averaging 1.46% eU₃O₈ from 1448.0 to 1512.0 feet

o  includes 9.0 feet of 2.89% eU₃O₈

_·          Hole WT-41,  26.5 feet averaging 1.48% eU₃O₈ from 1453.0 to 1479.5 feet 

_o    includes 10.5 feet of 2.57% eU₃O₈

 Steve Van Nort, CEO of VANE Minerals plc commented, "We are pleased that the Wate project continues toward development and, in our opinion, these new high-grade results continue to demonstrate the strength of the project.  The spot price of uranium oxide continues to improve at US$73.00/lb. VANE's objective is to be in a position to help fulfill the growing demand for uranium as the permitting and construction of new reactorsworld-wide gathers pace and the ultimate fuelling of them becomes a reality. Drilling on our other JV projects, specifically the Roadrunner target, is underway and we anticipate that our 2011 drilling program on the JV lands will be in full swing by Q2."

Gamma probe results:

Core Hole WT-39

(1448.0 - 1512.0) 64.0' - 1.46% eU₃O₈ (max 18.35%*), includes 9.0' of 2.89% eU₃O₈

Core Hole WT-41

(1253.0 - 1255.5)  2.5' - 0.24% eU₃O₈  (max 0.25%)

(1453.0 - 1479.5) 26.5' - 1.48% eU₃O₈ (max 2.92%), includes 10.5' of 2.57% eU₃O₈

(1511.5 - 1514.5) 3.0' - 0.34% eU₃O₈ (max 0.41%)

(1525.0 - 1532.0) 7.0' - 0.40% eU₃O₈ (max 0.63%)

NOTE:  Intervals calculated using 0.15% eU₃O₈ cut off. All depths are in feet and thicknesses are true thickness.

These new drill hole results are currently being incorporated into the resource model by SRK Consulting, Inc. to update the NI 43-101 report. Core drilling is continuing on the Wate project to obtain sufficient material to conduct metallurgical tests for indication of mill process and recovery characteristics.

* A maximum grade of 18.35% eU₃O₈ was indicated by the gamma probe within a 9.0 foot interval averaging 2.89% eU₃O₈ at the depth of 1493.0 to 1502.0 feet.  This interval of core was split and assayed using FUS-XRF analyses by Activation Laboratories (Canada) which revealed an actual average grade of 4.55% U₃O₈ over the interval with a maximum grade of 29.80% U₃O₈.

Project history

Exploration and resource evaluation in 1991 by the previous owner, Rocky Mountain Energy (RME), resulted in delineating a resource of between 1.1M lbs eU₃O₈ (defined by RME as "Conservative Case") and 2.4M lbs eU₃O₈   (defined by RME as "Full Case").    The joint venture's intent is to obtain NI43-101 compliant resource drilling data to verify a minimum of 1 million pounds eU₃O₈, at which point the project will move into pre-feasibility (further details are contained in the announcement made on 29 October 2010).

These resource figures were obtained from surface drilling only and the Board would expect, as historically found, that the deposit would be approximately 3 times larger once definition drilling can be completed underground from an adjacent development shaft. This is due to the shape of the pipe deposits being tall and relatively narrow and therefore simpler to define by drilling short holes from the side rather than long holes from the surface vertically above the deposits.

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.

For further information, please contact:

VANE Minerals Plc	[phone]
Matthew Idiens Allenby Capital Brian Stockbridge/Alex Price	[phone]
Threadneedle Communications	[phone]

Laurence Read/ Beth Harris

 

END

 

 

DRLUGUCCPUPGGPM