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.

Think I mail email them what little good it will do.

Surprised that the price has only ticked up .25 so far - would have expected a tad more. Patience

Baza

Not to sure how to take the Guadalcazar news, doesn't sound like thier to keen to push on with it for now. They must think that it has potential otherwise, why else schedule another round of drilling?

On the other hand great news about Mina Charey, think they will want to push on with this one as quick as poss and get it cash postive. With high grade mineralization and shallow depth this boeds well me thinks.

Back from taking my daughter to school and I can see my initial quick reaction to Guadalcazar was wrong. A lot more information required and it may not be so quick to arrive.

Doesn't worry me too much though. Vane has many strings to its bow and it's inevitable that results will vary from project to project. The Mina Charay news is excellent and we are looking forward to plenty more news to come.

What does concern me is that a lack of investment input and a too high proportion of trading input will impede the sp developing momentum. I know this is a debate that is permanently run on BBs. My view, as an investor and sometime trader, is that the negative effects of short-termism are more pronounced on a stock like this than either a large company or a company with massive trading volumes (eg SEO). What is surprising when you look at the trading patterns in VML is how little money anyone would be making from it (straight share-dealing). The transaction quantities are too small for it to be worth going in for a couple of pence rise. Yet it would seem some are doing that.

Well, I expect someone more experienced, more knowledgeable or just plain brighter will be along to put me right soon!

Cheers, Madison

Overall I think thats an excellent RNS update. Blimey what do people want Blood.

The drilling results are far better than those from Avocet mining in its infancy and that one went on from 19p to 100p within approx two years.

Miners can be frustrating stocks to hold patience is required.

cheers GF.

Madison,
The most common sense based post that I,v seen for along while. When you look at the very small volume of shares traded in any one day it would seem that, given the nature of day trading, you just could not make your money i.e. a 1pence rise in the share price if you held 100,000 shares would get you 1,000 there are few trades in this stock on a daily basis of 50k = 250 and usually a shift in share price of .25p to .75p is usual.

Loadsa

Thanks loadsa.

GF, like your comparison with Avocet! Yep, it does seem a lot of people are prepared to ignore all the positive factors with this company and determined to focus on anything that's questionable. A bit of decent investment and we'd soon breach previous sp highs.

Cheers, Madison

Sorry chaps - but yes I do find this share frustrating. A Good positive RNS - and still the share price falls.

Patience not my strong suit - but I will still hold

Baza

It's not the first time this share has fallen off the back of positive news. If this pattern holds and the release something really big, then we might all be able to top up at a favourable price.

Hate to think what would happen if we found a new untapped gold reserve... sp would probably plummet! lol

these low prices are good for the time being - means that we (I) can complete more research as things move ahead, and increase our stakes once (if?) we realise that the fundamentals are getting stronger.....then when the co. finds itself with lots of cash that it starts pumping into a potentially massive deposit, and the price moves northwards - one can begin to look for an exit point.....although it would still be better to wait until a mineable reserve was created (dependant on commodities prices)

the gold and silver results in today's RNS are extreme......but obviously i would like to see how the drillholes sit in relation to each other in a long section or on plan view.......seems like another high grade, small system like Diablito.

As for Guadalcazar......they have identified a hydrothermal system that was previously interpreted as an alluvial system - this is also quite significant.........
in general; alluvials are the piles of dirt/sediment that is dumped by a river - it is therefore secondary in regards to not being at the source of the mineralisation......but can still be lucrative - only thing is that pretty much all over the world, these "easily discovered" deposits have already been exploited.

The Hydrothermal system on the other hand, means that they can try to find the actual source of mineralisation ?, any higher-grade centres of mineralisation? or simply try to interpret what the actual hard-rock geology is doing and go from there.

Definition from the internet; [Hydrothermal - pertains to hot water or the action of heated water, often considered heated by magma or in association with magma.
Hydrothermal alteration - alteration of rocks or minerals by the reaction of hot water (and other fluids) with pre-existing rocks. The hot water is generally heated groundwater and dissolved minerals.]

i think that because VML is not producing great drill results for a deposit with a potentially massive mine-life (such as 20 yrs), the insitutions are not interested, and so it remains simply an exploration play.

....but as has been mentioned numerous times already (and will no doubt, be mentioned numerous times in the future).....a self-sourcing (financially) exploration company is so much better in terms of preserving shareholder wealth; than an exploration company that must dilute its shares by placings or JVs or straight-forward debt.....

Thanks for that belsice6.

Regarding Guadalcazar, do you think we shall learn anything very useful from the "programme of check assaying that is now underway" before the summer drilling?

The third drilling campaign at Mina Charay does not look likely to take too long - clearly the company is sticking to its strategy and going to get the cash rolling in as first priority. With high-grade mineralisation and shallow depth I shall look forward to the first cash projections.

Cheers, Madison

Hi Legend,
Watching closely, thanks for the tip. Will do some research.

Legend,
Have a look at PCM IMHO this has got a good chance of a good rise, got a brand new management team in place doing lots of deals.

Buy is at 15.70 that quite low!!! Hmmm alot of selling going on, last sell was for 14.50!
Think the RNS has not helped at all, seems like quite a few companies are not getting their message across properly.

Very busy day today so no time to post much. There is light at the end of the tunnel! Just hope we only get investors who have properly researched all aspects of the company and believe in it on the basis of the whole package.

Cheers, Madison

This sector has gone mad. Someone is making money out of this inverse logic and it's not me, yet, until I suss it.

madison,
not to sure that the check-assaying will come up wth anything better....
i think that it is more about taking either regular duplicate samples, or random samples and sending them to another assay lab, thereby second-checking that the assay-lab you have used, is ok..........
(if this is in fact the case, then in this regard; VML are being very open and honest, because many copmanies never mention the check-assaying part).

i think that this is standard to check-assay most assaying of anything.
- although the tin and mercury testing will be interesting - especially if it comes back as anomalous.

another re-assaying method is when you have sent in dirt/rock/core samples that cover more than a metre, for example 4 metres....then you go back and send in 1m samples for the areas that have come back as anomalous.....but i do not think that this is the case with VML's current Guad. drilling.

- although the RNS does not specify what intervals the assayed Guad. samples represent !!

I have just read the prospectus from last year, and gone through all of the press releases, and i have come up with the following analysis;

1 with another 800k to 1mill being spent over the Jan05 to Jun05 period; expect to have only about 1.5mill in cash by June2005-end.
Therefore, need to have Diablito coming through and reaching the financial projections that have been set.........

2 The Shares mag article (19.05.05) of last week made a blunder in terms of the smelter issue, which is not an issue (unless we hear about it in an RNS);
The RNS that was released on 11 May 05 mentions the following;
- lower grade material that was taken out during the (mine-decline) development stage of Diablito will need to be processed before it goes to the smelter, which means that it will incur the processing costs.....
- whereas the higher grade material (which should be most of what is mined, once full produciton is underway) is still supposed to go straight to the smelter, and therefore bypass any potential processing costs......ie; still on par with what was forecast by VML.

3 many were possibly expecting better results coming from Guadalcazar.....but need to realise that to try to find a conduit of higher-grade mineralisation (possibly at some depth- and especially when it may be sitting anywhere in a massive area); VML first needs to try to understand the localised geology and structures, in order to know where to try to drill with greater intensity......tis good to see that they are going with the HQ drillcore early on......as although it is the more expensive option; this means that they are able to interpret the complete geology as they should be getting solid oriented core coming out, as opposed to just general lithologies and mineralisation from RC or Aircore drill-chips.....

4 the VML sp had risen from <= ~13.5p since the 7 Mar 05 RNS that mentioned uranium properties for the first time, and has gone up to as high as a tad under 24p.
So to some extent I think that most of the 14p to 24p range over the past 2 to 3 months, has been possibly due to the uranium hype........which has died down, because they have to actually go and do some work on the ground now........

Overall, i think that the whole thing is sitting in the balance, with the potential to go either way; and that is possibly why a few people are getting out (probably expecting some of the above to take the negative route).........
The speculative nature of it all is approaching the point where the positive forecasting and expectations now need to be met. So for the positive-minded; a potential 11 to 14p sp range, would be a fantastic buying opportunity.

As always; please do your own research !!