VANE Minerals

VANE Minerals has bought another US uranium prospect, Colorado’s Coyote Basin, and suggests it could hold more than 50m lbs of uranium oxide, U3O8.

AIM-quoted VANE, which derives cash flow from its Diablito gold and silver mine in Mexico, has bought Coyote Basin from Canadian concern Uranium One, which is already its partner in another promising uranium project at Wate in Arizona. The company, steered by chief executive officer Steve Van Nort, says 1970s drilling in the Coyote Basin area showed intercepts ranging from 10 feet at 0.10% U3O8 to five feet at 0.82% U3O8.

Director Matthew Idiens says VANE is not disclosing how much it has paid for Coyote Basin to Uranium One Americas Inc, which will retain a 2% gross royalty on the project’s federal lode claims and 1% on the state lease, with the right to convert these royalties to a working interest of 10% to 35% before a feasibility study is concluded. Meanwhile, VANE expects to produce a resource estimate for Wate ‘within the next few weeks’.

Floated in 2006 at 11p as a gold and silver play, Vane shares hit 32.5p the following year, but slumped to 2.25p within the last 12 months. Highlighted by Growth Company Investor at 4.88p in November, they have reverted to that price, but could rally both on Coyote Basin hopes and the resource estimate for Wate.