Commencement of Mining Operations at Diablito Project
VANE Minerals Plc ("VANE" or "the Company") announces that mining operations
have begun at the high grade gold/silver Diablito project, located in Nayarit,
The Company also announces that test mining carried out so far, has produced
approximately 450 metric tons of ore, which is being prepared for shipment and
concentration. This material was extracted in the course of mine development and
was therefore expected to be of lower grade than the material produced from
future mining operations. The material produced by test mining will therefore
not be transported directly to a smelter, as is expected with the ore produced
when the mine is in full production. Instead, this material will be used for a
mill test to evaluate the effectiveness and the resulting revenue from
concentrating the ore from Diablito using froth flotation to produce a sulphide
concentrate that will then be smelted to recover gold and silver values.
Construction of the Diablito mine is continuing on schedule. The 2.2 metres x
2.2 metres haulage tunnel now extends 77 metres from the portal and is advancing
in vein material. The haulage opening and development drift will soon be
connected with the ground surface via an inclined tunnel in the plane of the
vein that will provide ventilation as well as a second exit from the mine.
Michael Spriggs, Chairman of VANE, commented: "VANE continues to make strong
progress towards its objective of becoming a self-funding exploration company,
with the near term revenue from gold/silver production. We are highly encouraged
by progress to date at Diablito and look forward to providing our shareholders
with regular updates on the mine development."