Business
Update on Mexican JV
Update on Mexican JV.
About this update from Zephyr Energy Plc
[{"type":"text","content":"\n RNS Number : 9196T Vane Minerals PLC 06 October 2010 \n \n\n \nVANE Minerals plc (AIM:VML)\n(\"VANE\" or the \"Company\")\nForming Joint Venture Following Successful Gold-Silver Ore Test Run, Mexico \nIn April of this year VANE entered into a binding Memorandum of Agreement (\"MOA\") to form a Joint Venture (\"JV\") with the Ruiz brothers to develop four high grade mines in the La Rastra district and to process the gold-silver ore from the JV at the Company's San Dieguito de Arriba (\"SDA\") mill. The Company today announces positive results from the first ore produced from the Colorada mine and processed at the VANE SDA mill. Following these results, the Board of VANE has made the decision to formalize the JV and increase production at Colorada to continue treating the resulting ore at the SDA mill. \nHighlights \n· Mining results from the Colorada mine, operated by the Ruiz Brothers \no 2,500 tonnes of gold-silver ore extracted between April and July 2010\no Presently mining at 900 tonnes per month\no Targeted goal of 2,000 tonnes per month by the end of the second quarter 2011\n· SDA Milling results\no 1,132.7 tonnes of Colorada ore milled, averaging 6.1 g/T gold and 485 g/T silver (anticipated grade was 5g/T gold and 150g/T silver)\no Sample milled produced 22.071 tonnes of concentrate carrying 169.7 g/T gold and 14.956 kg/T silver\n· Commissioning of cyanide leach-Merrill Crowe plant anticipated Q1 2011\n \nThe gold/silver milling facility owned by VANE Minerals plc, through its wholly owned Mexican subsidiary Minerales VANE SA de CV has successfully been in operation since November 2007. The addition of the cyanide leach-Merrill Crowe facility, anticipated during Q1 2011, will result in a facility unique to west-central Mexico and will offer a viable alternative to custom smelting, not only for VANE's mines but for numerous other small operations located within several hundred kilometres.\nThe agreement with the Ruiz brothers, constitutes the first stage of what the Board of VANE believes could be a significant growth area for the Company: milling of gold-silver feedstock from both owned and third-party mines. The first producing asset is the Colorada mine, in the La Rastra District, wh...