UPDATE UPDATE UPDATE..

COMPANY WEB SITE.........

http://www.vaneminerals.com/

THE PRICE OF URANIUM IS GOING BALISTIC...

The uranium spot price hasn't seen a down month since 2001. For years now, uranium producers have met just 60% of total annual demand - the other 40% coming from government stockpiles and decommissioned nuclear warheads. This can go on for only so long.

The tightness of supply comes at a time of atomic resurgence. Three large-scale factors have turned the tide in favour of nuclear energy:
geopolitics, global warming and developing world growth.

Analysts are debating over wether the SP of Uranium increase will be three fold within 2007?.

Looks like to me, the best play on the UK market for Uranium and it hasnt gotten away yet like the other two ZBA Zareba and URA Uranium which have multi bagged. Its also in a position to fund its development with a new gold mine producing. Ive added twice this morning and think this one could be very big. Heres the announcement...........

Vane Minerals PLC
07 March 2005


VANE Minerals plc (AIM: VML)

VANE Announces Diversification Into Uranium Exploration And Development

Vane Minerals ('VANE' or 'the Company') announces that it is diversifying its
current project portfolio by entering into the uranium exploration and
development business.

To date 7 uranium targets have been successfully claimed by the Company and 28
further properties have been identified and are under development. VANE expects
to finalise its property position by the end of the first quarter 2005. The
Company is targeting uranium projects that are either at, or near, resource
stage or targets that exhibit similar surface features to mines with past
production, but that have not yet been evaluated for the presence of uranium.

The 35 properties identified are located within a uranium district with
significant past production as well as significant resources. Due to the
current uranium market conditions, we prefer to not identify the location until
we complete our property position. Previous drilling data available for some of
the 7 properties successfully claimed indicate grade intersects from 0.34 up to
1.78% U3O8.

VANE has incorporated a 100% owned subsidiary to hold its uranium properties and
has also successfully recruited a uranium geologist, Kristopher K. Hefton B.Sc.,
who has considerable experience in this field and is a great addition to the
VANE team. Mr. Hefton has worked with VANE's exploration team in the past during
his time at Freeport McMoran, and he has also worked for Barrick Gold
Corporation, Homestake Mining Company and Energy Fuels Nuclear Inc.

Michael Spriggs, Chairman of VANE, commented, 'We are delighted to announce the
addition of these uranium assets to the VANE portfolio and will update the
market with more substantial details once further properties have been claimed.
The uranium market has been strong for some time now, reflecting a long-term
forecast supply shortage and the growing recognition that nuclear energy offers
a cleaner and more energy efficient fuel source. Through our extensive network,
we have identified some quality projects and look forward to releasing further
details when appropriate.'

Enquiries:

VANE Minerals plc Seymour Pierce Limited Parkgreen Communications
Matthew Idiens Sarah Wharry Justine Howarth / Cathy Malins
020 7667 6322 020 7107 8000 020 7493 3713

cheers GF.

Also tipped in this weeks"shares"mag for all its worth.

Madison, I know that VML are strenthening their uranium line but which other AIM companies are strong in Uranium.. I totally agree with your comments regharding Uranium prices!! Bang on! They take account of future trends as well as shift in Governmenet policy to focus on nuclear power!

Had a small nibble today, short term play.

is that what sent the price down......
sorry, hope you came in after the drop...

25k at 13.38p was my trade, wondered why it did not move
up with all the buying and the 250k at the close was the reason,
Evo clearing a seller.

ravey davy gravy - this is a very interestin stock and i'm in it quite heavy. Has a good summary of projects on the minesite website.... Very interesin

Had a small dabble with these to start with, looks an interesting portfolio.
Plenty of buys but sp held back two days running by 100,000 sells?

A very frustrating investment this. SP moves up and down with short term traders.

cheers GF.

Yes! Frustrating, I havent yet realised a profit on these but will comfortably hold on. There has to be a news update at least once a year, so it should be coming sometime soon. The market is also looking a little thin at the moment. Patience.

paperbag...are you suggesting we havn't had an update for nearly a year?

I think you need to go and check the news a little more carefully.....

Patience is the key.

cheers GF.

Everywhere i go with small caps it seems Evo are forcing the price down
of many stocks.

Luckily for Evo they have received a protected sell order at best price, firstly
they sat on 13.25/5p offer and the sellers trades or T trades went through at
13p, today they could afford to drop the offer to 12.5p offer and they cleared
another 250k and made a good profit on that.

I do the opposite of most people when there's a overhang and that's buy and
then buy more, Vane shares like today always have strong small support, when
Evo clear their seller the price will rebound back into the 13-16p trading range,
hard to call the bottom but i'll keep topping up into more weakness, 25k at 13.38p
and 25k at 12.4p today.

Depends on the other mm's and if they can keep a good spread to keep the buyers
coming, closing L2 was good, Vml must be due some kind of news soon and they have been very quiet of late.

Just buy long term myself in tranches.

cheers GF.

madison

i still like tthe look of vane, but still put off by that chart!!

Have a look at the 14 day Rsi, it's currently under 20 which is almost
as low as it ever gets.
There's always a strong bounce from a Rsi of 20 and below and Evo's
protected seller has allowed the price and Rsi drop to a very low level
It might not be the bottom but it cannot be far away with Diablito revenues
providing funding for the company's other activities so no fund raising is
needed.

aimtrader,

Do you like the look of Vane as an investment or a short-term trading opportunity?

Cheers, Madison

Overhang got cleared today, no protected sell today because the
sellers trade was the 500k at 0.25p.

Next trick is for all the mm's to virtually operate the same spread and
try and kill it, given it's current trading range it would be hard for a trader
to get into profit buying at 14.5p although you can buy for 13.8p online
at the close, long term it's still a good price and there must be some news
on the horizon with Vml's many varied mining interests.

article from iii


Putting a price on reserves
14.02.06
Peter Temple

After last months mining special, a subscriber commented that we had not looked at how to value pure mining exploration plays. So this follow-up article tries to address this issue.

Politics, metal prices, and the degree to which a project has known reserves all play a part in how a mining exploration play is valued. The first thing to appreciate is that exploration companies range from those that suspect some of their claims have minerals under the ground, to those who have actively tried to quantify what might be there.

There are semantic conventions that cover how these are described. Reserves signifies ore of a certain grade known to be in place and where extraction is likely to be viable. Mineral resources, one notch down, suggests a concentration of material of intrinsic economic interest. The resources category further subdivides into those that are measured, inferred or indicated, the difference between these being related to how much test drilling has been done to delineate the property in question.

Applying weighting to reserves and assets

What is plain is that most exploration companies will have a mixture of these different types of reserves and resources or nothing at all. Given that the more nebulous the measurement the lower the value it should have, valuing a stock becomes a method of applying an appropriate weighting to each portion of the reserves, adding up the total and seeing how it compares with the share price.

With a company that simply has a claim on a property and has done a bit of geological surveying and drilling, the simplest valuation is to add up the cost of buying the property and the amount spent on exploration, usually capitalised and hidden away in the farther reaches of the balance sheet. Often the share price will be way above this, so as a valuation method it does not help much. Nor is it much comfort to value a company simply on how much it has spent.

Calculating real values

For those whose exploration is a bit further advanced, drilling reports may give some clues as to the extent of the volume of ore, the weight of which can be calculated roughly by applying a value of 2.5 tonnes per cubic metre. Multiplying this by the grade percentage of metal in the ore can give us a presumed weight of the underlying metal, and therefore its value.

It is not usually as cut and dried as this. And of course this valuation says nothing about the complicated business of getting permission to extract, the associated mining costs, transport costs, political risks and the like. Julian Baring, the well known City gold bug, used to value mining stocks by taking, as a rough guide, 10% of the value as calculated in the previous paragraph as being the correct value for the company in question.

Gold mining rule of thumb

Curiously enough, this rough and ready guide seems to hold good today. Figures calculated by the Mining Business Digest in 2000, based on data for corporate acquisitions in the gold sector, reckoned that those at the earliest stages of exploration, with some inferred resources, would be valued at most at around 3.5% of the underlying metal value in the ground. An average for those with more tangible metal assets to develop would fetch around 11% of underlying value while those in the early stages of production could see a value of anything from 15% to 25% of the value of the underlying ounces of metal in the ground. It is not a hard and fast rule, however, and those mining base metals are valued at correspondingly lower rates.

There is some more data confirming this gold mining rule of thumb. According to figures compiled by Galahad Gold and sourced from broker reports and the publication Gold Stock Analyst, the average value placed on ounces in the ground in 2005 was $120 for second tier companies about to start production, $50 an ounce for those with resources that had been measured and/or indicated, and $32 an ounce for those with simply inferred resources. This compares with an average gold price for 2005 of $444, making the respective percentages 27%, 11.2%, and 7.2% not too far from those quoted earlier.

Expert opinions

As an aside, Galahad Gold (which numbers Jim Slater and his son Mark among its directors and shareholders) calculates that its own resources of gold and precious metals, mainly inferred, are currently valued at around an aggregate of $12 an ounce, versus the benchmark of at least $32.

Wondering who to believe? Paul van Eeden, a well-known gold investor who writes a weekly commentary on gold mining, suggests that to play properly in the mining market you need access to a qualified geologist who can evaluate drilling reports and give you that extra edge. Sadly, not all of us have this expertise on tap.

Is that 350k a buy or a sell?

Cheers, Madison

I would like to know what your opinions are on UMC Energy as the thread is onl inhabited by me.

What do you think about its uranium porspects in Canada?