News

Vane Minerals' losses widen on impairment charges

08 April 2008 11:55:00

Miner Vane reported an almost 10-fold rise in pre-tax losses and said a restraining order had halted its uranium drilling operations in Arizona after environmental groups protested.

Pre-tax losses for calendar year 2007 widened to £7.06m from £766,204 the previous year. Impairment costs associated with the ending of operations in Mexico's Guadalcazar Basin, which produces gold and silver, accounted for nearly £5m of the losses.

However, it added that high gold and silver prices will enable it to sell stockpiled supplies at higher prices than previously anticipated. The company continues to evaluate prospective targets involving uranium in the US, gold and silver projects Mexico and Paraguay and copper in all three countries, it said.

Separately, Vane said it has had to stop its uranium drilling activities in northern Arizona after it was issued with a restraining order following complaints by environmental groups.

Vane said that it had to postpone drilling after the district court in Phoenix, Arizona issued the company with a temporary restraining order on April 4. The order followed complaints by environmental groups Sierra Club, Grand Canyon Trust and the Center for Biological Diversity against the exploratory drilling projects.

Vane said that the date of the next phase of the case was due to be set imminently and that further announcements would be made in due course.

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