VDM Van Dieman

RNS Number:8050J
Van Dieman Mines plc
13 December 2007


                              VAN DIEMAN MINES PLC
                                   (AIM: VDM)

               Scotia Mine - Construction Progressing on Schedule

          Endurance Mine - Government Approvals Programme on Schedule

Van Dieman Mines plc (AIM: VDM), the AIM listed mining company which is
developing its 100% owned tin - sapphire mines in Tasmania, Australia, is
pleased to announce that:

   *Construction at the Scotia mine is progressing on schedule with mining
    and stock piling of ore commencing in mid December 2007, construction of the
    treatment plant is progressing with commissioning expected in February 2008
    and full production expected during March 2008.

   *A proactive programme for securing the necessary approvals and permits to
    commence mining at the Endurance mine during the second half of 2008 is also
    running to schedule.

Scotia Mine

Considerable progress is being made on the construction and commissioning of the
Scotia mine where installation of power lines from the supply authorities main
line to the transformer site at the treatment plant site is now complete. The
treatment plant site has been levelled, compacted and gravelled. The 16
containers of materials have been delivered to site and erection of the
treatment plant is underway with an anticipated completion ready for electrical
wiring prior to Christmas 2007. The main freshwater dam wall zone has been
cleared and dam wall construction is scheduled to commence next week. Three
containers have been fitted out as stores, workshop and maintenance offices and
the mess and mine office and are awaiting delivery to site.

The GIS (Geographic Information Systems) crew is currently in the process of
marking out the first section of the ore body to be stripped. From mid December
2007, on an ongoing basis, ore will be stockpiled adjacent to the treatment
plant site to provide feedstock for commissioning of the treatment plant in
February 2008, with full production expected to be achieved during March 2008.

Sapphire Sorting Room and Concentrate Clean-up

Approximately 3 tonnes of gem concentrate has been dried ready for treatment and
that material will be processed and sorted prior to Christmas 2007.

The sapphire sorting room has been assembled and is in use and, following
security upgrades currently being installed by the Company's security
consultants, will be complete by Christmas 2007.

Preliminary commissioning of the magnetic separator for gem concentrate clean-up
has commenced and, following fine tuning adjustments by the manufacturer as part
of its supply contract, the magnetic separator is expected to reach design
throughput by early January 2008.

Commissioning of the rotary furnace has been delayed awaiting the delivery of
burners that comply with Australian Standards requirements. These are expected
to be installed and operational by early January 2008 allowing the processing,
drying and shipment of tin concentrate from stockpiled material to proceed.

Endurance Mine

The Company is taking a highly proactive approach with Government agencies to
minimize the potential for unnecessary delays in the approvals process for the
Endurance mine. This has included, in recent weeks, initiating meetings with all
Government regulators at the commencement of the process to clearly establish;

   *The approvals process to be followed for the project
   *The range of specific approvals needed
   *The key staff contacts in each agency
   *The key environmental issues to be addressed
   *The indicative approvals time line proposed by Van Dieman

The key environmental issues identified by the regulators have been actioned by
the Company through its consultants. These include ecological surveys, traffic
impacts assessment, noise assessment and geotechnical investigations. The
Company has developed a comprehensive Government agency consultation plan
including regular project status updates and meetings.

In parallel to the above programmes the preparation of the Development Proposal
and Environmental Management Plan (DPEMP) documentation is well advanced with
the first draft of the Development Proposal scheduled for delivery prior to
Christmas and the first draft of the Environmental Management Plan scheduled for
delivery prior to the end of January.

Clive Trist, Managing Director, Van Dieman Mines, commented:

"The Board is happy to report that the Scotia mine construction and
commissioning phase is progressing to schedule. This will allow us to achieve
our primary objective of bringing the Scotia mine into full production during
March 2008 and to commence generating material cash flow from our operations for
the first time."

"In parallel, we are proactively pursuing the necessary approvals at our second
mine at nearby Endurance with the objective of commencing production during the
second half of 2008."

"We are on track to achieve these two objectives and with them to complete the
initial overall development plan for our abundant tin and sapphire reserves in
north east Tasmania by end of 2008."

                                                                13 December 2007

ENQUIRIES:

VAN DIEMAN MINES plc                  Tel: +61 (0) 2 8908 5103
Clive Trist, Managing Director        Email: clive.trist@vandiemanmines.com
GRANT THORNTON CORPORATE FINANCE      Tel: +44 (0) 20 7383 5100
Fiona Owen
FOX DAVIES CAPITAL LIMITED            Tel:  +44 (0) 20 7936 5230
Richard Hail, Corporate Finance
BANKSIDE CONSULTANTS                  Tel: +44 (0) 20 7367 8888
Michael Padley / Louise Davis

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. Pre-production development VDM's Scotia tin
and sapphire mine is currently well advanced and, once in full production,
Scotia will produce annually an estimated 700 tonnes of tin and 1.5 million
carats of mine rough, gem quality sapphire.

A six-year contract is in place with tin smelter and refiner, Thaisarco, for the
off-take at prevailing LME prices of the Company's entire tin concentrate output
from the Scotia and Endurance mines expected to be 1,350 - 1,500 tonnes of
contained tin per year. A joint venture marketing agreement is also in place for
the marketing of the Company's sapphire and spinel production. Output of mine
rough, gem quality sapphire from the Scotia and Endurance mines is expected to
be approximately 3 million carats annually.

NOTES:

1.        DPEMP: the Development Plan and Environmental Management Plan is
required to be lodged and approved prior to commencement of mining activities

2.        The technical content of this announcement has been reviewed by a
Director of Van Dieman Mines plc, Neil Kinnane, who has over 40 years experience
in geology, exploration and mining and is a fellow of the Australasian Institute
of Mining and Metallurgy (AusIMM), Chartered Practising Geologist, Member of
Geological Society of America, Member of Geological Society of Australia, a
recognized professional association.



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

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