Vane soars on "encouraging" drill results

Shares in Vane Minerals (VML) climbed up more than 16% as it confirmed drilling results were "encouraging" at the McGhee Peak project in New Mexico.

The company has discovered two mineralised targets, holes MP-2 and MP-3, located in the north target area approximately half a mile apart "within a clearly-identified porphyry system" containing copper, molybdenum and zinc.

The company highlighted copper values in the range of between 300 and 600 parts per million (ppm), with zinc values greater than 200 ppm.

"Further drilling is required over the coming months to confirm whether this porphyry has economic potential," warned chief executive David Newton.

However, he commented that the "successful drilling result" gave him confidence of further exploration success in the remaining projects.

Three McGhee Peak holes have been drilled and are in various stages of completion

The first hole, Hole MP-1, located approximately one mile to the south, was lost at a depth of 360 feet. "Encouraging alteration with anomalous copper and visible molybdenite was encountered before bad ground conditions prevented continuation of the hole," the company said.

However, the company stressed that there were plans to re-drill the hole. And once the re-drilling is completed, the rotary drill will be moved to the miner's next copper target.

Finally, Vane confirmed that permitting of the additional holes at McGhee Peak was underway and bids on the diamond drilling required for the vectoring holes were being evaluated.

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