Vane Minerals has encountered weak mineralisation at the Peg Leg property in southwest New Mexico following the completion of two rotary drilling programmes.
The first hole was drilled to a depth of 1,800ft and the second to a depth of 858ft, but field analyses indicated weak to nil copper values.
Vane Minerals chief executive officer David Newton said, "Although it is clearly disappointing that the drilling at Peg Leg has not proven successful in identifying another mineralised porphyry system, our overall programme is proving successful in concentrating our efforts, inexpensively, on our portfolio of copper prospects."
The company has decided to cease work on this target and plans to commence rotary drilling at the next copper exploration target, Railroad.
Vane Minerals also plans to secure the necessary permits to allow the proposed diamond drilling programme at McGhee Peak, where a drilling programme in 2011/12 demonstrated mineralisation.
The company said that a diamond drill rig has been secured and permitting process is being secured from the New Mexico authorities.
In a separate statement, Vane Minerals also announced that it has completed an internal, non NI 43-101 compliant resource estimate at the La Colorada Mine, part of the existing joint venture with the Ruiz family in Rosario, Mexico.
Assay results indicated resource of 16,507 tonnes at grades of 6.0g/T Au and 116g/T Ag; and an inferred resource of 26,953 tonnes at grades of 5.3g/T Au and 144g/T Ag.