Production at Diablito
Vane Minerals PLC
02 November 2005
VANE Minerals plc (AIM: VML)
Commercial Production Initiated at Diablito
VANE Minerals plc ('VANE' or 'the Company') today announces that its wholly
owned subsidiary, Minerales VANE SA de CV, has initiated commercial production
at its high grade gold/silver Diablito project located in the State of Nayarit,
west-central Mexico.
Agreements with Minera Real de Cosala SA de CV and Nexxtrade (both Mexican
companies) are already in place, thereby assuring the availability of milling
facilities for the processing of the high-grade precious metal ore and a trading
platform for the sale of the resulting concentrates. The production of ore will
continue at the rate of 60 tonnes per day ('tpd') with the concurrent
development of the lower levels of the mine for future production. It is
expected that the development of the upper level will be completed in November
and the 'mining of ore only' will commence from that level. This is anticipated
to increase the grade and therefore revenues.
In the months of August and September 2005, 3,200 tonnes of ore were mined at
Diablito and stockpiled at the Cosala mill. This stockpile is presently
undergoing flotation concentration at the mill and the concentrates produced
from this process - an estimated 100 tonnes - are scheduled to be sold before
the end of November. This is expected to generate revenue in excess of
US$400,000 for the two production months of August and September, with revenues
expected to continue monthly thereafter.
Michael Spriggs, Chairman of VANE, commented: 'This commercial production is an
important step in VANE's development as it differentiates us from other junior
exploration companies. We are now set to produce solid cash flows, and the
revenues generated from Diablito will offset the majority of the Company's
exploration expenditures which will reduce the cash burn to minimal levels.'
General Update:
VANE Minerals (US) LLC, the Uranium subsidiary of VANE Minerals PLC, continues
to concentrate on the expansion of its property portfolio. Advanced negotiations
are progressing well with a number of parties on making additions to our
properties and it is the intention to release further news upon signing of the
contracts.
The Company is also progressing well in Mexico with its exploration programmes
at the Mina Charay gold/silver project and the Choix copper project. Further
drilling at Guadalcazar is expected now to commence in the first quarter of
2006.
Following the acquisition in November 2004 of data from a two-year stream
sampling programme in Paraguay, the Company's geologists have been targeting the
known gold and copper/gold anomalies and focusing on the potential sources. The
Company is encouraged by sampling results to date and will provide a more
detailed update in due course.
Enquiries:
VANE Minerals plc Seymour Pierce Limited Parkgreen Communications
Matthew Idiens Jeremy Porter Justine Howarth / Annabel Leather
020 7667 6322 020 7107 8000 020 7493 3713
This information is provided by RNS
The company news service from the London Stock Exchange
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