Business
Increased Resource - Diablito
Increased Resource - Diablito.
About this update from Zephyr Energy Plc
[{"type":"text","content":"\n Vane Minerals PLC\n17 November 2006\n\n\n17th November 2006\n\n VANE Minerals Plc (AIM: VML)\n\n\n Increased Silver - Gold Resource at Diablito Mine, Mexico\n\n - Potential to increase daily production by 50%\n\n\nVANE Minerals Plc, ('VANE' or 'the Company') today announces that its 100% owned\nMexican subsidiary, Minerales VANE SA de CV has substantially increased the\nsilver and gold resource at its wholly-owned high grade Diablito silver-gold\nmine, in Nayarit State, Mexico.\n\n\nHighlights\n\n\n• As of 1st August 2006 the JORC compliant resource has increased by \n approximately 52% net of production to 141,277 tonnes containing 6.07grams \n per tonne ('g/t') gold ('Au') and 684 grams per tonne silver ('Ag').\n\n• The resource is allocated as follows:\n\no Measured and Indicated 110,077 tonnes at an average grade of 7.20 g/t\n Au and 747 g/t Ag\n\no Inferred 31,200 tonnes at an average grade of 2.10 g/t Au and 461.7 g/t\n Ag\n\n• VANE management believe that the new resource would justify an increase in \n daily production from 50 to 75 tonnes per day ('tpd')\n\n\nAs announced on 4th September 2006, the drilling programme, which was undertaken\nto further define and extend the resource, consisted of 20 diamond drill holes\ndrilled from the surface, both inclined and vertical, within the Diablito\nconcession.\n\n\nThis drilling has increased the Diablito resource by approximately 52% from\n93,000 tonnes to a total of 141,277 tonnes, having an average grade of 6.07 g/t\nAu and 684 g/t Ag. Please see tabulation of the resource in Table 1, below.\n\n\nThe Diablito mine commenced production in November 2005 at a daily rate of 50\ntonnes per day and is currently generating US$420,000 of gross revenue per\nmonth. A total of 17,659 tonnes have been mined to 1st August 2006. VANE now has\nthe option of either increasing daily production from 50 to 75 tpd or extending\nmine life by some three years at the current rate of production.\n\n\nThe Company remains on track to construct its own mill and flotation plant close\nto the Diablito mine site which will serve to dramatically reduce transportation\ncosts and remove the current reliance on third party toll milling arrangements\n(refer to the Interim report, 12th September 2006). The plant will have a\ntarget capacity of 100 tpd, which allows for a further potential increase in...