Vane Minerals PLC
04 March 2005
VANE Minerals plc
Full Production Expected At Diablito Three Months Ahead Of Schedule
Vane Minerals ('VANE' or 'the Company') announces that it has signed an
agreement with a mining contractor to develop its most advanced project,
Diablito, a high grade gold/silver deposit located in west-central Mexico.
VANE's wholly owned subsidiary Minerales Vane SA de CV has signed the agreement
with MGA Constratista Minera SA de CV in San Luis Potosi, Mexico, stating that
work at the Company's Diablito property will commence in 15 days.
The contractor had sent the required machinery to the property, ahead of the
signing of the contract, and so work should commence on time and full production
will be achieved three months ahead of schedule.
Following the development plan that VANE has created, Diablito is expected to
produce ore within three weeks of the work commencing. The Company had
originally planned to begin at a lower rate and ramp up production to 50 tons
per day over a three month period. However, the new development plan is expected
to allow the mine to start producing at the full production rate of 50 tons per
day.
At this target rate, VANE has estimated an annual pre tax profit from Diablito
of US$3m, or US$250,000 per month, with a mine life of seven years given the
present resource calculation. As previously announced on 25th October 2004, the
vein is open at depth, and an infill drilling programme is planned in order to
extend the resource.
Michael Spriggs, Chairman of VANE commented, 'We are very pleased with this
progress at Diablito, and delighted to be achieving full production quicker than
previously expected. With the cash flow, we are well on our way to achieving
VANE's objective of becoming a self-funding exploration company, therefore
limiting the downside to our shareholders.'
Enquiries:
VANE Minerals plc Seymour Pierce Limited Parkgreen Communications
Matthew Idiens Sarah Wharry Justine Howarth / Cathy Malins
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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