Business
Diablito Drilling Results
Diablito Drilling Results.
About this update from Zephyr Energy Plc
[{"type":"text","content":"\n Vane Minerals PLC\n04 September 2006\n\n4th September 2006\n\n\n VANE Minerals Plc (AIM: VML)\n\n Encouraging Results from Drilling Programme at Diablito Mine\n\nVANE Minerals Plc ('VANE' or 'the Company') is pleased to announce that it's\n100% owned Mexican subsidiary, Minerales VANE SA de CV, has recently completed\nan encouraging drilling programme at its high grade Diablito silver-gold mine,\nin Nayarit State, Mexico.\n\nThe Diablito mine commenced production from the Main or Lower Vein in November\n2005 at a daily rate of 50 tonnes per day and is currently generating US$420,000\nof income per month, with a total mining, processing, transportation and\nsmelting cost of US$ 125/t.\n\nThe latest drilling was undertaken to further define and extend the remaining\nresource of 93,000 tonnes @ 12.13g/t gold and 1,319g/t silver (undiluted)\ncalculated over a 130m section of the 300m surface expression of the Lower Vein.\nThe programme has returned encouraging assay results from this vein as well as\nconfirming good mineralisation in a new vein, the Upper Vein, which has been\nrecently identified. Other areas on the concession have also been newly\nidentified for further exploration.\n\nThe drilling programme consisted of 20 diamond drill holes drilled from the\nsurface, both inclined and vertical, within the Diablito concession. Assays\nhave now been received for all the drill core sampled and a new resource\nestimate will be calculated once all assay results and drill hole data has been\ncollated. The Company expects this work to be completed in September and will\nthen review the mine plan with the intention of increasing the daily production\nrate.\n\nIn order to facilitate the additional production and generate cost savings, the\nCompany is in discussion with financiers to provide a convertible debt facility\nfor the construction of its own mill and flotation plant near the project site.\n\nLower and Upper Vein results:\n\nHoles DIA 36, 37, 38, 39, 40, 41 and 47, were drilled to confirm the presence of\nthe Lower Vein between the mine workings and holes DIA 30 and 31, which were\ndrilled in a previous programme. In addition, eight drill holes, 42, 43, 44, 45,\n46, 48, 50 and 51, were drilled to define the mineralisation down dip from the\nprevious drilling.\n\nVein intersections confirm the extension of the mineralisation to...