New drilling results at VANE's WATE Pipe : News from McNeill.org.uk

New drilling results at VANE's WATE Pipe

08 February 2011
New drilling results at VANE's WATE Pipe

VANE update on the pre-development work at the Wate uranium breccia pipe project, Arizona, USA

VANE Minerals is pleased to provide an update on the pre-development work at the Wate uranium breccia pipe project located in northern Arizona and held in the joint venture with Uranium One Exploration U.S.A. Inc. and the Company’s wholly-owned subsidiary VANE Minerals (US) LLC.  Two core holes, WT-39 and WT-41, have been completed with gamma probe results demonstrating, in the opinion of the Board, the continuing strength of this project.

HIGHLIGHTS
  • Hole WT-39, 64.0 feet averaging 1.46% eU3O8 from 1448.0 to 1512.0 feet
    • includes 9.0 feet of 2.89% eU3O8
  • Hole WT-41, 26.5 feet averaging 1.48% eU3O8 from 1453.0 to 1479.5 feet
    • includes 10.5 feet of 2.57% eU3O8
Steve Van Nort, CEO of VANE Minerals plc commented, "We are pleased that the Wate project continues toward development and, in our opinion, these new high-grade results continue to demonstrate the strength of the project.  The spot price of uranium oxide continues to improve at US$73.00/lb. VANE’s objective is to be in a position to help fulfill the growing demand for uranium as the permitting and construction of new reactors world-wide gathers pace and the ultimate fuelling of them becomes a reality. Drilling on our other JV projects, specifically the Roadrunner target, is underway and we anticipate that our 2011 drilling program on the JV lands will be in full swing by Q2."
 
Gamma probe results:
 
Core Hole WT-39
(1448.0 – 1512.0) 64.0’ – 1.46% eU3O8 (max 18.35%*), includes 9.0’ of 2.89% eU3O8
 
Core Hole WT-41
(1253.0 – 1255.5)  2.5’ – 0.24% eU3O8  (max 0.25%)
(1453.0 – 1479.5) 26.5’ – 1.48% eU3O8 (max 2.92%), includes 10.5’ of 2.57% eU3O8
(1511.5 – 1514.5) 3.0’ – 0.34% eU3O8 (max 0.41%)
(1525.0 – 1532.0) 7.0’ – 0.40% eU3O8 (max 0.63%)
 
NOTE: Intervals calculated using 0.15% eU3O8 cut off. All depths are in feet and thicknesses are true thickness.
 
These new drill hole results are currently being incorporated into the resource model by SRK Consulting, Inc. to update the NI 43-101 report. Core drilling is continuing on the Wate project to obtain sufficient material to conduct metallurgical tests for indication of mill process and recovery characteristics.
 
* A maximum grade of 18.35% eU3O8 was indicated by the gamma probe within a 9.0 foot interval averaging 2.89% eU3O8 at the depth of 1493.0 to 1502.0 feet. This interval of core was split and assayed using FUS-XRF analyses by Activation Laboratories (Canada) which revealed an actual average grade of 4.55% U3O8 over the interval with a maximum grade of 29.80% U3O8.
 
Project history
 
Exploration and resource evaluation in 1991 by the previous owner, Rocky Mountain Energy (RME), resulted in delineating a resource of between 1.1M lbs eU3O8 (defined by RME as “Conservative Case”) and 2.4M lbs eU3O8   (defined by RME as “Full Case”).    The joint venture’s intent is to obtain NI43-101 compliant resource drilling data to verify a minimum of 1 million pounds eU3O8, at which point the project will move into pre-feasibility (further details are contained in the announcement made on 29 October 2010).
 
These resource figures were obtained from surface drilling only and the Board would expect, as historically found, that the deposit would be approximately 3 times larger once definition drilling can be completed underground from an adjacent development shaft. This is due to the shape of the pipe deposits being tall and relatively narrow and therefore simpler to define by drilling short holes from the side rather than long holes from the surface vertically above the deposits.