VDM Van Dieman

RNS Number:4451H
Van Dieman Mines plc
09 August 2006


                              VAN DIEMAN MINES PLC
                    Results of AGM and Chairman's Statement

All resolutions proposed at today's Annual General Meeting were duly passed.

Michael Spriggs, Chairman, Van Dieman Mines plc ("Van Dieman" or "the Company"),
the AIM listed mining company which is developing tin and sapphire mines in
Tasmania, made the following comments at today's Annual General Meeting:

"The year has been one of considerable progress on many fronts. We can now
expect to commence production later this year.

Because of industry-wide delays in delivery of plant and equipment, the
programme is slightly behind schedule. However, all necessary plant and
equipment has now been sourced, delivery schedules confirmed, finance secured,
and initial staff recruited. We are also at an advanced stage in the process of
receiving the final mine permits to allow us to commence mining operations.

Equally importantly, we have sales and marketing agreements in place for the
entire mine production. We have signed an offtake agreement with the Thailand
Smelting and Refining Co. Ltd. for the tin concentrate output, and marketing
partners have been appointed in the US for the sapphires produced. We recently
announced that we have identified a gemstone market for the spinel by-product,
material that we had regarded previously as an industrial mineral. This will
give us an additional source of revenue that we had not anticipated.

I should like to congratulate the management team on the progress made. Your
Board is very optimistic regarding the prospects for the Company".

ENQUIRIES:

VAN DIEMAN MINES plc                      Tel: +61 (0) 2 8908 5103
Clive Trist, Managing Director            Email: clive.trist@vandiemanmines.com

BANKSIDE CONSULTANTS                      Tel: +44 (0) 20 7367 8888
Michael Padley / Daniela Hale

Editors' Note

Van Dieman Mines is developing tin and sapphire mines in north east Tasmania
where the Company holds several leases. The Scotia mine is well advanced and is
expected to be in production late 2006, and a second mine is scheduled to begin
production in 2007. A pilot plant has been operating in tenements close to and
adjoining the Scotia lease since November 2005. The plant has produced
sufficient sapphire and other co-product material to be able to stimulate and
evaluate potential US market demand.

A six-year contract was signed in July 2005 with tin smelter and refiner,
Thaisarco, for the offtake of the Company's entire tin concentrate output of
1,350-1,500 tonnes contained tin per year at prevailing market prices. In
addition, an agreement has been signed with a major US jewellery company to
market the sapphire production, and a market for the spinel gemstone by-product
has recently been identified. Initial sapphire samples have proven to be of high
quality and have been extremely well received by the US market.


                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
AGMSSSFFUSMSEEA

Van Dieman Mines (LSE:VDM)
Historical Stock Chart
From Jun 2024 to Jul 2024

Van Dieman Mines (LSE:VDM)
Historical Stock Chart
From Jul 2023 to Jul 2024