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.

They'll be back. One sniff of the ascent back to the twenties and I think they'll be in again, though it's predominantly small scale stuff.

They might even help to take the sp back up. The trouble is not traders. The trouble is with an excessive ratio of traders to investors they will probably take it up and down again. Perhaps I should say an excessive ratio of trading to investing (or even just short-term to long-term) because many of us combine both activities in different ratios.

However if the company manage to time the release of news on, for example, Guadalcazar to good effect then that might help us to break out of the possible range-trading that may ensue.

For any new readers of this thread there is a wealth of information in the previous posts. Post 744 from tallsiii gives a quick indication of why many of us are still expecting a bright future for the sp despite its recent fall.

There is a great stream of news to come over the following months, and most of it's expected to be good.

Let's hope for a better day tommorow, though I'm not really expecting anything in the short-term. At least the indices are looking a little better.

Cheers, Madison

from todays Shares Mag.

Vane Minerals (VML:AIM)

has started mining its Diablito gold
and silver project in Mexico. Thats good news but you wouldnt
know it looking at the way the shares reacted. The stock crashed
from 21p to 17p. So why is that, you may wonder? Well, it seems
investors, while expecting lower gold and silver grades from initial
deposits, are less than impressed by the possibility that Vane may
not be able to extract what gold and silver there is unless using a
smelter, possibly not even then. However, mine construction is
going to plan and Vane still expects to recover exploration costs,
with an eventual $250,000 a month profit predicted from 50
tonnes a day production.

cheers HM.

Nothing wrong with a little exposure, hopefully it will help the SP gather northerly momentum

Thanks for posting that hampi-man.

I think the smelter is used for higher-grade ore so the above makes no sense at all. I'm a bit busy, but if I have time I'll check this out.

Perhaps someone is able to clarify this? It's a shame to let incorrect information (if it is) stand uncorrected.

Cheers, Madison

A small snippet from an article over at mineweb

We see exposure to gold equities as particularly desirable at a time when risk aversion appears to be increasing among many institutional investors, they pointed out. In addition to potential fresh weakness in the dollar and higher inflation rates, other risk issues they perceive will aid golds performance include global economic growth uncertainty, geopolitical tensions, concerns over the impact of soaring oil prices, and security or terrorism fears.

Full article:

http://www.mineweb.net/columns/down_under/441529.htm

The Shares statement makes no sense:

"the possibility that Vane may not be able to extract what gold and silver there is unless using a smelter, possibly not even then."

This is my understanding:
The assumption has always been that a smelter would be used. A new possibility arose more recently of employing the flotation method to recover gold from the lower grade material in the initial excavation. It is actually possible to use this to recover gold from higher grade ore but not necessarily economic to do so. Were the costs of flotation milling to be borne because of its advantageous use for lower grade material, then it is just possible that it could be used also for the higher grade ore. This is under assessment but it does not mean that it is either likely or unlikely.

If anyone has a better understanding please post it!

The fact remains that cash will be coming in soon and the original estimates for this cashflow were done when the gold price was lower.

Cheers, Madison

Cheers Madison,

Yeah your understanding seems to make more sense to me, and thats they way I had assumed it worked.

Thanks.

Madison,

Sounds spot on to me. Do think Vane could of made the rns a little clearer though. Don't think Vane explained the fact that the lower grade ore that was being processed was only a by-product from mining to the target depth. Also i think i'm right (without checking recent rns) that no decision has been made regarding which method is to be used, i.e smelter/flotation which has got people thinking all may not be well.

Daws

wouldn't worry too much about the shares mag article, as a smimlar thing happened with Biofuels over the past couple of weeks.....one thing (negative) was written one week, and then the postive things (which the knowledgable investors stuck by) were written the next week.......journalism !!!!

Condtradicts what Ive been told in a private message from the CEO. In short he told me everything was going to plan and further news out re- production/commercialisation at the first mine and drilling at the second and others would come out by RNS very shortly.

Just what in full does this shares Mag article say as I say it appearrs to total contradict what I and I think others have recieved from the company.

cheers GF.

GF, it was posted in full this morning - post 789.

Sorry just seen the post from HM. Seems to me we have a communication cock up from the Shares Journalist. Lets face it the price of the company as fallen along with most miners and the markets due to soft market conditions and worries that China may no longer have high demand for resources, which is well off track anyway. It as had nothing to do with any technical issues, and we have seen get rich quick traders getting out moving onto the next big thing.

Might be worth giving the Company a bell or an e-mail to nip this in the bud.

cheers GF.

I agree shares mag don't know what they are talking about!

Over time I have observed that financial journalists like to be able to give an explanation for a price move. Unfortuately as they didn't know the real explanation in this case, they have just made one up.

You can't get gold out of gold ore without a smelter. The only question is whether they use the floation process to concentrate the ore before the send it to the smelter. Doing so would reduce the costs of transportation. The management were very confident of cashflow in the near future at the AGM.

Tallsiii.

Thanks tallsiii...

Cheers, Madison

Very quiet in here again today. Think everyone is just waiting for news now. Shame those few sells knocked the price down a little.

Hi Syd. Waiting and watching...I'm slightly overweight in VML or I'd have some more at this price!

Cheers, Madison

This share seems to move loads on very small volumes.

yeah noticed that, does that have any significance?

Thanks.

It can mean MMs don't hold a lot of stock, but I'm not sure if that's the case here.

There was a stage, just before VML shot up from 15.75 to the twenties when it clung to the same sp for over a week despite relatively large buying. (You'll see GF and I commenting on it towards the start of the thread.)

Just tried to buy some in an ISA but wasn't allowed.

Cheers, Madison

Just phoned Vane Minerals as I am out of the country for a few weeks as from monday so I wanted to clarify a few points before I left especially the article recently published in this weeks share mag.
The gentleman I managed to speak to was Mathew Idiens, he stated that he was aware of the recent article and that it was factually incorrect, the journalist that wrote the article was not a mining expert.
He said that there would be a follow up article in next weeks shares mag to confirm this.
He also said that there are HIGH grades of gold and silver deposits and that everything was running on target.
With regard to the process, they will be milling the gold and silver to keep the transportation costs to a minimum.
He also confirmed that there will be more good news to come within the next few weeks.
I will just add that the gentleman I spoke to was extremely knowledgeable in this field and happy to help with any questions I had. He was very upbeat about the company in general and gave me good re-assurance in the management of this company.
If you need to confirm any of this I would advise you to ring him direct as I am sure he will be happy to take your calls.
I am now happy to hold and look forward to the news!

thanks for that Judkay........looks very positive