Mexican Gold & Silver Quarterly Operations Update
VANE Minerals plc (AIM:VML)
("VANE" or the "Company")
Mexican gold & silver quarterly operations update covering the period 1 January to 31 March 2012 ("Q1")
VANE is pleased to announce an operational update on its gold/silver operations in Mexico.
The Company announces that the increased revenue from its Mexican operations experienced in Q4 2011 has continued throughout Q1.
Highlights
· Total revenue of US$2,612,564 generated in Q1 (Q4 2011: US$2,692,093)
· 8,113 tonnes of ore in total processed by SDA Mill during Q1 (Q4 2011: 7,802 tonnes) with average grades 6.87g /T Au and 156g/T Ag (Q4 2011: 8.06g/T Au and Q4 2011: 127g/T Ag)
· Average recovery rate of 80.3% Au and 77.0% Ag (Q4 2011: 78.2% Au and 70.9% Ag)
· 1,180 oz. Au and 26,164 oz. Ag produced in Q1 at a direct production cost of $582 equivalent per oz. Au; or $10.7 equivalent per oz. Ag (Q4 2011: 1,352 oz. Au and 19,410 oz. Ag produced at a direct production cost of $585 equivalent per oz. Au; or $10.8 equivalent per oz. Ag)
· 70.8 tonnes of concentrate held in inventory at period end (Q4 2011: 68.6 tonnes)
· All gold and silver sold unhedged
The Company announced on 6 February 2012 that in addition to the normal production from the La Colorada Mine, work had now commenced to remove an identified 3,200 tonnes of higher grade ore from the Diablito Mine ahead of its planned closure later in 2012. Of these 3,200 tonnes, it is expected that approximately 1,600 tonnes of high grade ore (17.9g/T Au and 1,801g/T Ag) will be processed through the Company's Merrill Crowe facility at the rate of 80 tonnes per month, with the remaining ore (2g/T Au and 200 g/T Ag) stockpiled. The first revenue from this additional production is expected to be recognised in Q2 2012.
Commenting today, David Newton, CEO of VANE said: "Q1 production continues to meet forecasts and our in-house evaluation work during the period indicates security of production moving forward. Our Mexican operations continue to fund our copper and uranium exploration programs on which we will provide updates as appropriate."
Kristopher K. Hefton, BSc Geology, Chief Operating Officer VANE Minerals plc 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.
For further information, please contact:
|
VANE Minerals Plc |
+44 (0) 20 7667 6322 |
|
David Newton CEO VANE Minerals plc
Allenby Capital (Nominated Adviser & Joint Broker) Jeremy Porter/Alex Price
Northland Capital Markets (Joint Broker) Louis Castro |
+44 (0) 203328 5656
+44 (0) 20 7796 8821 |
|
Bankside Consultants |
+44 (0) 20 7367 8888 |
Simon Rothschild
Further detail on the agreement with the Ruiz brothers and exploration potential
The JV's initial focus is the four concessions, of which La Colorada is currently in production. Exploration and mine planning of the additional concessions continues.
Within the four concessions, a number of precious metals veins and vein systems are known and have been partially developed:
· La Colorada concession (14 hectares) - includes the following workings: Salto, La Camichina,
Campo Ancho, Chaparro, La Colorada and La Escondida located at different elevations along the same vein(s) system. These workings have opened the principal vein structure intermittently over a horizontal distance of 400 meters and a vertical distance of 130 meters;
· Maria Fernanda concession (72 hectares) - includes two separate veins, Saltito, which has
numerous shallow workings along a strike length of more than 500 meters and the largely unexplored Papayal vein;
· Jorge Luis concession (11.9 hectares) - covers the upper level workings along the La
Valenzuela vein 75 meters above La Valenzuela tunnel; and
· La Valenzuela concession (74.9 hectares) - an adit provides access to the lower level as well as the upper workings (Jorge Luis concession) along the La Valenzuela vein.
Although several ore shoots have been intersected in the La Colorada concession, current production is from the Camichina drift, a 2-3 meter wide vein, which is currently projected to extend for 150 meters along strike and 70 meters in the dip direction. The Board believes that the potential of the La Colorada concession remains encouraging based on historic drill results obtained in 2006. The lowermost Salto tunnel, 50 meters below the Camichina level, will allow for easy access to newly discovered ore shoots. Mapping and sampling continues to be carried out by the JV to determine the location of all of the underground workings and the best method to access the known ore shoots to expand production. Diamond drilling will be carried out by the JV as necessary.
The Saltito vein system, which is the JV's next target for production, on the Maria Fernanda concession, exhibits numerous shallow mine workings over a 500+ meter strike length. Historic drilling (2006) has given indications of mineralization extending to depth. Mineralogy and grades are projected to be similar to the ore being produced at La Colorada. The JV will carry out mapping and sampling to determine the best method of accessing and developing the ore shoots currently indicated from shallow underground workings along with diamond drilling as necessary.
Historic mapping from the La Valenzuela vein indicates two ore shoots extending from the upper Jorge Luis drift to 40 meters below the La Valenzuela drift, a vertical difference of 115 meters in which a non-compliant NI43-101 resource of 43,000 tonnes at 6.8 g/T Au (9,400 oz. Au) and unspecified silver has been inferred. Mapping and sampling will be carried out by the JV to determine the best method of accessing and developing the ore shoots currently indicated from the underground workings along with diamond drilling as necessary.
Within the 1,500 km2 area covered by the JV, numerous other precious metals vein targets exist as per the "Geological-Mining Monograph of the State of Sinaloa" published by the Consejo de Resursos Minerales, and the Board anticipates that these will be explored and evaluated during the course of the JV. The Board's intention is that the JV will develop several additional mines that will be capable of each supplying 50+ tonnes of ore per day which, the Board believes, would in turn justify the construction of an additional mill in a location more central to the mines. Concentrates from that mill would then be processed by leaching and Merrill Crowe precipitation at the SDA Mill or sent to a smelter.
This information is provided by RNS
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