VANE Minerals Half Yearly Report

07 September 2012
VANE Minerals Half Yearly Report

Interim Report for the Six Months to 30 June 2012

VANE Minerals plc (AIM:VML) is pleased to announce its maiden profit as part of its interim report for the six months to 30 June 2012.

Highlights for Period

  • £3,400,665 revenue, a rise of 174% (H1 2011: £1,240,651)
  • £177,470 profit after tax, representing 0.04 pence per share (H1 2011: £1,032,981 loss as restated, representing (0.32) pence per share)
  • Repayment of £500,000 of convertible loan stock with remaining £1 million of convertible loan stock re-negotiated for a further five years at a coupon of 8% and a conversion price of 1.25p per Ordinary Share
  • £1,096,024 group cash balance at period end (H1 2011: £1,525,014)

Silver/gold production and milling, Mexico

  • Increased revenues and profitability at operations
  • 16,217 tonnes processed in period (108% of target) (H1 2011: 15,642 tonnes)
  • Average metal price received on sales of concentrates was $31.04/oz silver and $1,650/oz gold (H1 2011: average prices of $38.08/oz silver and $1,525/oz gold)
  • Average recovery rate of 80% Au and 77% Ag (H1 2011: 69% Au and 67% Ag)
  • 2,208 oz. Au and 48,311 oz Ag produced in H1 2012 at a direct production cost of $652.94 equivalent per oz Au; or $11.92 equivalent per oz Ag (Year ended 31 December 2011: 2,706 oz Au and 73,384 oz Ag produced at a direct production cost of $743.45 equivalent per oz Au; or $16.23 equivalent per oz Ag)

Copper portfolio

  • Copper-molybdenum porphyry system successfully drilled at McGhee Peak. Two mineralised targets have been identified, located approximately one mile apart, within a clearly identified porphyry system, containing copper, molybdenum and zinc. A diamond drilling programme is planned
  • Peg Leg and Railroad drilled with negative results
  • Property positions also established at Bouse, Lone Hills and Cherry Creek
  • Initial exploration work at Bouse has produced strong anomalous gold and copper values

Uranium portfolio

  • VANE assumes management of Wate Mining Company LLC (Member companies VANE and Uranium One each holding 50%) which includes NI 43-101 compliant inferred resource of 1.118m Ibs eU3O8 at Wate breccia pipe project
  • Wate Mineral Development Report, a requirement for the Mineral Lease application, in progress
  • U.S. Government confirms withdrawal of over 1 million acres of federal lands from mining activity. VANE has initiated legal action seeking redress
  • Uranium exploration programme placed on care and maintenance

David Newton, CEO of VANE Minerals said; "These are very pleasing results; the operational team should be congratulated for delivering the Company's maiden profit, which in these financially challenging times, is a significant and impressive achievement. It also reflects the importance of our relationship with our Mexican joint venture partners, in which we have invested in excess of $300,000 alone on developing the La Colorada asset since we entered into the joint venture legal contract. This is in addition to a wider investment in the building and development of our Merrill Crowe facility, the ongoing development of our SDA mill, the identification of a resource at La Colorada and further preparatory work on the assets within the joint venture area."

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