Business
Joint Venture Agreement, Gold
Joint Venture Agreement, Gold.
About this update from Zephyr Energy Plc
[{"type":"text","content":"\n RNS Number : 1016N Vane Minerals PLC 07 June 2010 \n \n\nVANE Minerals plc (AIM:VML)\n(\"VANE\" or the \"Company\")\n \nJoint Venture Agreement\nExpansion of Gold/Silver Production, Mexico\n \n· 1,000 tonne bulk sample test of gold/silver ore to be processed through Minerales VANE's mill, Mexico \n· 15 tonnes/day at 5-6 g/T Au and 100-200 g/T Ag produced by joint venture partner\no 50 tonnes/day target production\n· Production to be shipped 150km to VANE's mill pending test results, Mexico\n· Operating profits to be split 60-40% (VANE/Partner, respectively) \n· Further mining opportunities to be examined\n \n \nMinerales VANE SA de CV (\"MV\") the 100% owned subsidiary of VANE Minerals plc has signed a legally binding memorandum of understanding (\"MOU\") with Jose and Hector Ruiz (\"Partner\" or \"Met-Sin SA de CV\") forming a joint venture to process gold/silver ores and develop additional precious metal mines in southern Sinaloa, Mexico. \n \nThe joint venture will focus initially on four concessions currently controlled by Met-Sin SA de CV, one of which, La Colorada, is currently in production. The MOU provides for a 60-day due diligence period during which a 1,000 tonne bulk sample of La Colorada ore will be processed through MV's mill at San Dieguito de Arriba (\"SDA\") to ensure metallurgical compatibility with the SDA plant. Current production from La Colorada mine, amounting to some 15 tonnes/day at 5-6 g/T Au and 100-200 g/T Ag, will be trucked to MV's SDA mill which is located approximately 150km to the south. This is planned to be increased with a target production of 50 tonnes/day.\n \nIn addition, MV will also oversee the exploration and mine planning of the additional concessions, provide project financing and make available its SDA plant near Acaponeta, Nayarit, Mexico. Operating profits will be split 60:40 (VANE/Partner, respectively) after VANE has recovered 150% of its upfront capital costs, from an initial 80:20 split (VANE/Partner, respectively). The joint venture includes an area of interest of approximate 1,500 km2, within which the owners' family has controlled properties for several generations.\n \nCommenting today Steve Van Nort, CEO of VANE said: \"While we have successf...