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.

Hope your right Tallsii, this getting to be joke. Good company, good prospects, good ideas, good management and its making money. Yet price just goes down.

I mean what does it take to get this share to go up? its already mining/Acquiring the "Fashionable" stuff like gold and uranium yet nothing seems to get this to rise.

Maybe I am just having a bad day coupled with it being Friday 13th. I hate it when it goes down like this on a fri because I cant take my mind off it for the weekend, wondering what direction its going to take on monday.

Tallsiii, difficult call this sentiment thing, but anyway for the purpose of this thread suffice it to say I'm sticking with Vane. I'll come back to the rest when sensibility returns, maybe in a month or two or maybe in a decade or so!

Does anyone know if there's a thread dealing with the general topic of current sentiment anywhere on ADVFN?

syd - how long are you investing for? You can't keep on having weekends like that, it's bad for your health! It's possible the market, the shorters, the day traders or whatever will drag us into oblivion. But if you're going to invest in small companies at all then you might as well choose one as well positioned in the current climate as Vane.

tallsiii - thanks for your calculations. I am hoping to sit down and think about this over the weekend, but two five year old girls want their tea soon - which will soon put the current Vane volatility into perspective!

Cheers, Madison

1 - 2 years not sure if thats med to long term.

Yeah I know got to stop thinking about it and leave it to sort itself out, but its hard earned cash dissappering in front of my eyes.

Dont understand how this market works, seems to go agaisnt everything logical.

Am still learning so at least I have my money in a good company.

Just looked at the trades, some interesting ones just after close.

Interesting read from the vane website just posted in the last few hours:

"Bloomberg, By Simon Casey : 12-May-2005



Vane Starts Mining at Diablito Gold, Silver Project (Update1)



May 11 (Bloomberg) -- Vane Minerals Plc said it began mining at its Diablito gold and silver project in west-central Mexico, five months later than scheduled.

Vane has produced 450 metric tons of ore during test mining in Nayarit, the Leeds, England-based company said today in a Regulatory News Service statement. It also extended the haulage tunnel at the mine to 77 meters, and plans a second tunnel.

Vane had said when it listed on London's Alternative Investment Market on June 2 that mining would start before 2005.

Shares of Vane closed down 0.25 pence, or 1.2 percent, at 20.75 pence in London. They have increased 89 percent in the last year, giving the company a market value of 30.3 million pounds ($56.8 million). "

You're not alone Syd, logic to me seems to be inverted at the moment, not just with Vane. The way the market is at the moment if a company announced they had discovered green kryptonite then it's sp would probably go down.

In the end Friday turned out to be a balance of buys and sells.

tallsiii - how did you arrive at your conservative estimate of uranium extraction costs at $20 per lb? Presumably the original investigations were carried out (and mining thought viable) on the basis that uranium prices were around $20 per pound at most. So I would have expected extraction costs to be somewhat lower.

Pushed for time at the moment or I would write more.

Cheers, Madison

There is plenty of cash in the bank. Enough to get well into 2006 on the current cashburn. Then there is cash coming soon from Diablito's gold. We expect news of a new cashflow from Mina Charay to be announced in the near future. The cash from selling the uranium sites could be excellent (projections outlined by tallsiii above). That's cash now, cash soon, cash medium-term and big cash date unknown.

Vane is as well-placed as it can be in the current market, with a steady flow of news to come. If you're going to invest at all (I accept there are many good reasons not to at present) then it's going dirt cheap. This is not to say it can't get cheaper. But it's a quality stock, that given INVESTORS, has more reason to rise than most.

tallsiii has done an excellent (because it's very, very conservative) projection above. Here's another way of looking at it:

The income from Diablito, based on the last estimate of $3m per year (for seven years) works out at around 135,000 per month. This figure is going to be refined fairly soon, though with the gold price now higher than when that original estimate was made, it may well be upwards. This alone covers the vast majority of Vane's 143,000 per month cash burn.

(If all other things were to remain the same - which, of course, they won't - then Vane could carry on for the entire seven year life of Diablito and still have 1m in the bank.)

Which leaves the cashflow from Mina Charay, the sale of Guadalcazar and the sale of these first uranium sites all sitting nicely for free on top. (The gold and copper targets in Paraguay are in the background at the moment, but will eventually emerge into the limelight. The Freeport database use has only fairly recently been extended till 2006: presumably for a reason.)

Now you would have to be seriously negative to think that all of those prospects will misfire in some way! Especially with Vane's great track record and management. Of course I wouldn't claim my projection is anymore than a back of the envelope calculation. Before long we shall have a lot more information on which to pontificate more accurately, and I guess there's a few in the City waiting for that information too. In the meantime I hope that gives you some grounds for long term optimism if you are at all despondent at the current sp.

Cheers, Madison

Good morning everyone. Thanks for post Madison, Vane has dropped again ouch!!!!!!!......one has to have nerves of steel at the moment. We bought in at 23p, 22p and 21p and it has dropped through our stoploss, but we are hanging in there because like you we do believe in this share and are looking at the longterm. Regards Di and Paul.

Good morning everyone. Thanks for post Madison, Vane has dropped again ouch!!!!!!!......one has to have nerves of steel at the moment. We bought in at 23p, 22p and 21p and it has dropped through our stoploss, but we are hanging in there because like you we do believe in this share and are looking at the longterm. Regards Di and Paul.

Am not selling, and I cant believe some are. I read over at the ADVFN all these people saying how good this company is then as soon as it falls they all go into a mass selling attitude no wonder this share is going down. Am holding and am happy to hold.

Hi Syd, Glad you are still with us, we can't believe the "selling", wish we had more funds to top up now. Regards Di and Paul

I'm still with you guys - but it is starting to hurt.

Baza

AIM are starting two new indices - the AIM 50 and the AIM 100.

I wonder if recent price moves may in fact be mm manipulation of certain stocks while they vie for position in these new indices?

It is starting to hurt bhunt1910. Most of my portfolio is red and down at the moment.
wilbs

Hi Di & Paul, yes nerves of steel or plenty of good humour required!

When I started investing I made the classic mistake of holding onto losers for too long, hoping they'd come back. Many didn't. Then I went through a phase of getting too blase about selling off.

I always keep track of my investments (even those sold) and I did notice a pattern in thoses that I'd sold off. They fell into two groups - those that I really thought had no future (either through my own poor investment, through new factors emerging or whatever) and those that I had been very secure about and definitely believed in but sold off because I eventually got swayed by prevailing sentiment/opinion and a declining sp.

What I have noticed is that those in the former group have generally floundered, whilst those in the latter group have often come back well after a few months. So now I'm trying to have more faith in my own judgements! I'd be the first to admit it can be scary!

baza - I think it may hurt for a while now, but when the rise eventually comes it will take us by surprise.

Cheers, Madison

Topped up twice this morning, see the price move north again buy while the price is low.

Well done syd. Looks like you may have called it nicely. You mentioned ADVFN and I took a look. Extraordinary, as you say, that people who were so positive could panic so quickly! What it exposes sadly is that a lot of these are not investors at all. Let's hope that some of the current little raft of buyers are looking for 30p or 50p (as opposed to the low twenties) and prepared to wait for it. Somehow I doubt it. Off for a swim.

Cheers, Madison

Phew, relieved we recovered from that 16% dip earlier on. In previous times I would have panicked too and joined the sellers, but hindsight has usually taught me that was wrong in the medium to long term. Madison's post 765 is spot on.