Vane Minerals PLC VML Acquisition of Porphyry Copper Prospect

  Vane Minerals PLC (VML) - Acquisition of Porphyry Copper Prospect

RNS Number : 5979Q
Vane Minerals PLC
08 November 2012
 



 

                         VANE Minerals plc (AIM:VML)

                          ("VANE" or the "Company")

                                       

      Acquisition of Porphyry Copper Prospect - Mineral District, Idaho

 

VANE Minerals plc, through its 100% owned USA subsidiary, AVEN Associates  LLC 
("AVEN"), is pleased to announce the acquisition of 38 unpatented lode  claims 
in the historic Mineral District,  Washington County, Idaho. The district  has 
historic copper, gold and high-grade silver production.

                                       

The agreement with Merrill  Palmer, claim owner,  has a term  of 50 years  and 
covers 38 unpatented  lode claims  within a 72  sq. miles  area of  interest.  
Historic drill log data of that area,  dating back to 1969 drilling by  Cyprus 
Mines,  revealed  a   742  foot  drill   interval  of  porphyry   copper-style 
mineralization that  averaged 0.17%  copper. Samples  from the  hole were  not 
assayed for  silver,  gold or  molybdenum,  but more  importantly,  no  offset 
drilling of  this very  anomalous  drill hole  was ever  undertaken.  Geologic 
mapping, as well as sampling of outcrops and mine dumps is currently  underway 
in an  effort to  refine the  porphyry copper/molybdenum/gold/silver  drilling 
target.

 

The diorite  intrusion at  Mineral District  is similar  to that  reported  by 
Mosquito Consolidated Gold Mines Limited at their copper-molybdenum project in
nearby Boise County,  Idaho and  is similar in  many respects  to the  British 
Columbia porphyry copper deposits.

 

AVEN has  a 100%  interest in  any  minerals discovered  by paying  an  annual 
advance royalty  starting at  $20,000, to  be paid  by 31  January 2013.   The 
royalty increases by $10,000  per year until year  eight of the agreement  and 
remains at $100,000 per  annum thereafter. The agreement  also includes a  net 
smelter return royalty of 3% applicable to all minerals produced and sold from
the area of  interest. AVEN  has the  option to  reduce the  royalty to  1.5%, 
during the first five years of the  agreement, by paying the lessor a one  off 
payment of US$2,000,000. AVEN can terminate  the option agreement at any  time 
without penalty.

 

 

Kristopher K. Hefton, BSc Geology,  Chief Operating Officer VANE Minerals  plc 
who meets the criteria of  a qualified person under the  AIM Rules - Note  for 
Mining and  Oil &  Gas  Companies, has  reviewed  and approved  the  technical 
information contained within this announcement.

 

For further information, please contact:

 

VANE Minerals Plc                                  +44 (0) 20 7667 6322

David Newton

CEO VANE Minerals plc

 
Allenby Capital (Nominated Adviser & Joint Broker) +44 (0) 20 3328 5656

Jeremy Porter/Alex Price

 
Northland Capital Markets (Joint Broker)           +44 (0) 20 7796 8821

Louis Castro

 
Bankside Consultants                               +44 (0) 20 7367 8888

Simon Rothschild

 

                                       

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
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MSCBRBDBBBGBGDR -0- Nov/08/2012 07:00 GMT