Option over Mina Charay Prospect in Mexico
VANE Holdings Plc (?VANE?) has entered into an option agreement with Minera PAFEX, S.A. de C.V. to acquire the Mina Charay gold and silver prospect in the State of Sinaloa in western Mexico.
The prospect, which contains known gold and silver mineralization, including the Mina del Padre and other veins, is located in the long established San Blas Mining District, in a part of the Rio Fuerte Valley known as ?The Buried Peaks? which represent the westernmost bedrock exposures of the Sierra Nevada Occidental Mountain range.
VANE has planned a drilling and sampling programme on the prospect to take place throughout October and November 2004 and expect to announce the results of this programme early in the new year. The Directors of VANE are very encouraged by early sampling results from the site which indicate significant grades of gold and silver.
The option agreement provides for payments of US$5,000 per month up to December 2004 and further incremental staged payments as follows:
* Of which US$1,000,000 will be in VANE ordinary shares. Following the final payment of US$2,000,000 VANE will own the prospect outright.
The option agreement can be terminated at any time by VANE should they not wish to proceed with the acquisition and no further monthly or staged payments would be payable.
The geology of the Mina Charay region and of the prospect itself is characterised by a thick section of volcanics of Tertiary age. Mina Charay occurs at the south west foot of Cerro Del Mina, a conical hill composed of north west dipping andesites. The southern flank of this hill is cut by a steep fault zone believed to be the same structure that controls mineralization at Mina Charay particularly that of the strongly mineralized ?Veta de la Mina del Padre?. That fault extends into a zone of brecciated andesites and rhyolites which are intensely silicified, fractured and cut by a stockwork of quartz veinlets with concentrations of gold and silver as well as geochemically anomalous values of lead, zinc, molybdenum and mercury. Other veins, known to occur in the immediate area, some parallel with the Mina del Padre (Charay) vein, have not yet been explored
The Drilling programme at the Company?s Diablito property in the State of Nayarit, Mexico, has now been undertaken and is progressing well. The Company expects to release the results from this imminently as timetabled in its AIM prospectus.
VANE Holdings plc 020 7667 6322
Seymour Pierce Limited 020 7107 8000
Parkgreen Communications 020 7493 3713
Justine Howarth / Cathy Malins