VDM Van Dieman

RNS Number:7120C
Van Dieman Mines plc
23 August 2007


                                                                            

                              VAN DIEMAN MINES PLC


                                 AGM Statement

      Development approval for Central Concentrate Clean-up Plant received



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 frustration as unexpected delays in the permitting
procedure, the majority of which were outside the Company's control, have held
up the project by almost 12 months. The Board fully understands the
disappointment of the shareholders. However, I can assure them that their
concerns have been listened to and that everything possible has been done to
ensure that we can move quickly, now we finally have in place the permits
relating to the Scotia mine. Final development approval was granted in June.


"We have used the delay to refine the equipment in order to improve efficiency,
to define better the parameters of the mine operation and to put in place
marketing agreements for the tin, sapphires and spinel production. Further
resource exploration has been carried out.


"The local Dorset Council has now issued the development approval, which will
enable the Central Concentrate Clean-up Plant to be commissioned and allow us to
commence processing stockpiled bulk sample concentrates produced from the
operation of the pilot plant.


"Initial processing of these stockpiled concentrates over the next three months
will enable the company to fine tune the clean-up circuit and will result in the
production of an estimated 10 to 15 tonnes of tin and 6,000 to 10,000 carats of
corundum. This material is expected to yield somewhere in the vicinity of 1,000
to 2,000 carats of sapphire.


"All necessary plant and equipment has now been sourced, staff are in place and
construction has commenced.


"Permitting for the second mine, Endurance, is proceeding well and the mine
should be in production in late 2008.


"In line with the Company strategy as outlined at the time of the IPO and as
stated in the latest Annual Report, the Company is considering undertaking a
secondary fundraising in order to meet the commitments as outlined above. A
further announcement will be made regarding this shortly.


"We have also taken the opportunity to strengthen the Board. We have recently
announced the appointment of two complementary Non-executive Directors, Mike
Etheridge and Ron Goodman. Mike has excellent geological and technical
qualifications and is also a proven businessman with plc Board level experience
whilst Ron has a background in processing plant design and plant management. We
are very pleased that both have agreed to join us and look forward to receiving
their input."



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


                                                                  23 August 2007

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 / Libby Moss



Background on Van Dieman (AIM: VDM)

VDM is in the process of developing its alluvial tin, sapphire and accompanying
mineral deposits in the northeast of Tasmania, Australia where it owns 15
exploration and retention licenses. Exploration and development planning consent
is now complete for VDM's Scotia tin and sapphire mine which is scheduled to
move to first production later this year. When in full production the Scotia
Mine will produce annually an estimated 700 tonnes of tin and 1.5 million carats
of mine rough gem quality sapphire. Thaisarco, the Thai tin smelter and refiner,
has agreed to take the Company's entire expected tin concentrate output of
1,350-1,500 tonnes contained tin per year once both the Scotia and Endurance
mines are in production. Agreements are also in place for the marketing of the
sapphire and spinel production.




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

END
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