VMS Ventures Inc. (TSX VENTURE: VMS) (the "Company") announced
today that it has agreed to launch a new nickel exploration Company
that will include VMS' Manitoba, Canada nickel properties and newly
optioned nickel properties in Sudbury, Ontario, one of the world's
most prolific nickel production areas. VMS will own approximately
45% of the new Company, to be named North American Nickel, upon
completion of events detailed in today's release.
North American Nickel Inc.
VMS Ventures has agreed to become the largest shareholder of
Widescope Resources, to be renamed North American Nickel Inc.
At its April 8, 2010 Annual and Special meeting, Widescope's
shareholders will convene to approve a 2-old for 1-new common share
consolidation, a corporate name change to North American Nickel
Inc. and, the election of 4 new directors and 2 continuing
directors, in addition to the routine items normally conducted at
such meetings.
It is proposed that Richard Mark, Mark Fedikow, John Roozendaal
and James Clucas be added to the Board of Directors and that Edward
D. Ford and Douglas E. Ford be re-elected.
Following the shareholders' meeting, it is expected that the
directors will appoint Rick Mark, Chief Executive Officer and
Chairman; Mark Fedikow, President and Chief Operating Officer; and
Edward Ford, Chief Financial Officer. Widescope Resources is a
Canadian company trading on the OTC Bulletin Board under the symbol
WSCRF.
The first focus of North American Nickel will be its two key
Sudbury properties. The Post Creek property is strategically
located adjacent to the producing Podolsky copper-nickel-platinum
group metal deposit of FNX Mining. The property lies along the
extension of the Whistle Offset Dyke structure, which is a major
geological control for Ni-Cu-PGM mineralization. The Bell Lake
property is a 256 acre property that covers approximately 1 km of
the Mystery Offset Dyke or "MOD". The MOD is interpreted to be an
extension of the Worthington Offset Dyke which is a 10-11 km long
mineralized structure that extends from the southwest margin of the
Sudbury Igneous Complex.
Rick Mark, VMS Ventures Inc. CEO states;
"VMS has been looking for a way to maximize the value of its
nickel assets for almost two years. The Company has been focused
exclusively on its Reed Lake copper discovery and its extensive VMS
exploration property portfolio in Manitoba for the last 30 months,
so the nickel properties have been sitting dormant. Mark Fedikow's
previous exploration experiences in Sudbury have led VMS to certain
property opportunities which have been the subject of negotiation
for the past eight months. The VMS board has been hesitant to raise
equity on the VMS capital structure at current price levels and has
decided that a significant ownership in this nickel-focused
company, with Sudbury assets added to the property portfolio,
provides VMS shareholders a bigger, faster upside in this time of
strengthening nickel prices. We anticipate both companies to
quickly have concurrent exploration and drilling activities in two
of the world's most prolific mineralized regions, the Flin
Flon-Snow Lake VMS belt in Manitoba and the Sudbury Basin in
Ontario, thereby creating more opportunities for discovery, sooner,
for VMS shareholders. Mark Fedikow will dedicate 75% of his time to
his position as President and COO of North American Nickel and 25%
of his time as VP Exploration for VMS Ventures. John Roozendaal
will sit on the North American Nickel board and continue his full
time focus as President of VMS Ventures. North American Nickel's
new geological team will be operating out of Sudbury."
The VMS Manitoba Nickel Properties
North American Nickel will acquire, from VMS Ventures, 100%
ownership of the Ni-Cu-PGE South Bay property near Thompson,
Manitoba and the large grassroots Thompson North and Cedar Lake
properties, which are part of the world-class Thompson Nickel Belt.
VMS will retain a 2% NSR on these properties.
South Bay: Exploration was spurred at the South Bay property by
the September, 2003 discovery of a zone of high-grade nickel
mineralization. The nickel-copper-cobalt platinum group element
("PGE") zone was found in one wall of a new road cut 60 km east of
the town of Leaf Rapids, Manitoba. The average grade of eleven
samples of near-solid sulphide collected from boulder-sized blast
rubble in the road cut exposure is 2.42 % Ni, 0.78 % Cu, 697 ppm Co
and 1.32 g/t PGE. The mineralization is sedimentary-rock-hosted and
exhibits similar metal characteristics to ores associated with
magma-derived nickel deposits that are mined at Thompson and
worldwide. Airborne geophysical surveys (VTEM) have been flown over
the property and preliminary soil geochemical surveys have been
undertaken.
Thompson North: The property overlies the world class Thompson
Nickel Belt ("TNB") where Vale Inco continues to mine
nickel-copper-cobalt and platinum group element mineralization
hosted within sedimentary and mafic intrusive rocks. Based on
research by the Manitoba Geological Survey the northeastern
extension of the TNB has been traced through the Thompson North
property making the area highly attractive for repetitions of TNB
mineralization. Airborne geophysics (VTEM) has been flown over the
property and numerous anomalous magnetic and electromagnetic
features identified. Follow-up exploration will be based upon
ranking and modeling of geophysics and soil geochemical
surveys.
Cedar Lake: The property occupies the southern portion of the
Thompson Nickel Belt where previous exploration based on the
drill-testing of geophysical anomalies has identified key
stratigraphic components that host producing nickel-copper-cobalt
and platinum group elements at the Thompson and Pipe Mines of Vale
Inco. Nickel mineralization has been intersected in drilling on
adjacent Mineral Exploration Licenses. The prospective rock units
are overlain by younger carbonate rocks and conceal the TNB in this
area. The Company has undertaken airborne geophysical surveys
(VTEM) and delineated numerous conductive and magnetic anomalies.
These anomalies will be prioritized and drill tested subsequent to
soil geochemical surveys.
Sudbury Nickel Properties:
Post Creek: The property is located 35 km east of Sudbury in
Norman and Parkin townships and consists of 35 contiguous
unpatented mining claims and one isolated claim covering an area of
688 hectares. It is strategically located adjacent to the producing
Podolsky copper-nickel-platinum group metal deposit of FNX Mining.
The property lies along the extension of the Whistle Offset Dyke
Structure which is a major geological control for Ni-Cu-PGM
mineralization. This structure hosted the former INCO Whistle
Offset copper-nickel-PGM Mine (5.7 million tons grading 0.33% Cu,
0.95% Ni and 3.77 g/t total platinum metals) as well as the
Podolsky North and Podolsky 2000 copper-precious metal deposits.
FNX forecast the production of 372,049 tons of ore at Podolsky
yielding 1.8 million pounds of payable nickel, 28.5 million pounds
of payable copper and 27,300 ounces of payable platinum, palladium
and gold for 2009.
Previous operators located the extension of the Whistle Offset
Dyke structure on the Post Creek property as a direct result of
their geological, geophysical and Mobile Metal Ion geochemical
surveys. Drilling on this structure intersected a 0.66 m near solid
to solid sulphide zone with 0.48% copper, 0.08% nickel, 53 parts
per billion (ppb) palladium, 34 ppb platinum and 20 ppb gold. A
rock sample collected along the structure assayed 0.83% Ni, 0.74%
Cu, 0.07% Co, 2241 ppb Pt and 1051 ppb Pd. Significant potential
for nickel-copper-PGM is demonstrated on the Post Creek
property.
A NI 43-101 compliant Technical Report has been commissioned,
with Dr. Walter Peredery, formerly of INCO, as the author.
Bell Lake: The Bell Lake property is a 256 acre property that
covers approximately 1 km of the Mystery Offset Dyke or "MOD". The
MOD is interpreted to be an extension of the Worthington Offset
Dyke which is a 10-11 km long mineralized structure that extends
from the southwest margin of the Sudbury Igneous Complex. Offset
Dyke environments are significant hosts to nickel-copper-PGM
mineralization in the Sudbury Basin. The Worthington Offset Dyke
hosts the past producing Worthington Mine and the Victoria Mine
(1.5 million tons of 2.2% copper, 1.5% nickel and 2.3 g/t total
precious metals). It is also host to Vale Inco's Totten Mine
development (10.1 million tons at 1.5% nickel, 2% copper and 4.8
g/t platinum group metals). Crowflight Minerals AER-Kidd property
also occurs within the Worthington Offset. The Bell Lake property
is marked by surface exposures of disseminated to near-solid
nickel-copper sulphide mineralization with PGM values. The Mystery
Offset Dyke offers excellent exploration potential for the
discovery of additional nickel-copper-PGM mineralization.
Deep-looking ground geophysical technologies and diamond drilling
will test the property after detailed geological mapping has been
undertaken on the property.
Halcyon: The property is located 35 km NNE of Sudbury in the SE
corner of Parkin Twp, and consists of 46 unpatented mining claims.
It is readily accessible by paved and all-weather gravel road.
Halcyon is adjacent to the Post Creek property and contains the
extension of the metallogenetically significant Whistle Offset
Structure. It is approximately 2 km north of the producing Podolsky
Mine of FNX Mining. Previous operators on the property defined
numerous conductive zones based on induced polarization (I.P.)
surveys with coincident anomalous soil geochemistry. Base and
precious metal mineralization have been found in multiple locations
on the property but follow-up work was never done. The former
producing Jon Smith Mine (nickel-copper-cobalt-platinum) is
situated 1 Km North of the property.
Woods Creek: The Woods Creek claim block is located in Hyman
Township about 50 km west of Sudbury and comprises eight contiguous
unpatented mining claims covering 1,264 hectares. The target on the
property is disseminated to near-solid nickel-copper-cobalt-PGM
mineralization hosted within Nipissing Diabase dykes which cover
50% of the property. This style of mineralization is currently
being mined by Ursa Major Minerals at their Shakespeare deposit 15
km southwest of the Woods Creek property. It contains 7,301,000
tons grading 0.37% Ni, 0.39% Cu, 0.024% Co, 0.37 g/t Pt, 0.40 g/t
Pd and 0.20 g/t Au.
Previous operators defined a number of mineralized zones on the
Woods Creek property, but little follow-up exploration was
undertaken. The Main Zone prospect is a zone of 10-40%
pyrrhotite-chalcopyrite mineralization that assayed 1.22% Cu, 0.95%
Ni, 354 ppb combined Pt and Pd and 136 ppb Au. Diamond drilling on
this zone intersected a 6.5 m section of gabbro with pyrrhotite and
chalcopyrite that assayed up to 1.09% Ni, 0.37% Cu, 301 ppb
combined Pt and Pd and 1110 ppm Co (0.11%). The Ravenshill prospect
was discovered in 2005 as a result of geological mapping and
prospecting. It comprises near solid pyrrhotite and chalcopyrite in
brecciated gabbro with assays of 0.66% Ni, 0.90% Cu, 0.09% Co, 68
ppb Pt, 227 ppb Pd and 46 ppb Au.
Private Placements
In order to finance North American Nickel's working capital
needs and the phase one exploration work at Post Creek, North
American Nickel has arranged two non-brokered private placements.
The first will consist of 10,000,000 post consolidation shares at
$0.05. The second will consist of 10,000,000 units at $0.06. The
unit consists of one post consolidation share and one
non-transferrable warrant to purchase an additional
post-consolidation common share at $0.10 for 30 months after
closing. The warrant may be subject to earlier expiry on the
occurrence of a triggering event. The "Trigger Event" shall occur
when the closing price for the North American Nickel common shares
on a recognized exchange is greater than $0.40 per share for a
period of twenty (20) consecutive trading days. On the occurrence
of the Trigger Event at any time after 120-days post-closing, North
American Nickel may choose, within 10 days of such a Trigger Event,
to shorten the term of the warrants by giving unit holders notice
of same.
VMS Ventures will own approximately 45% of North American Nickel
at the completion of the two Private Placements.
TSX Venture Exchange Listing
Immediately, upon completion of the events detailed above and
the receipt of Dr. Peredery's NI 43-101 report on the Post Creek,
North American Nickel will apply to list its common shares on the
TSX Venture Exchange, pursuant to a Listing Application on Form
2B.
About VMS Ventures
VMS Ventures Inc. is focused primarily on acquiring, exploring
and developing copper-zinc-gold-silver massive sulphide deposits in
the Flin Flon-Snow Lake VMS Belt of Manitoba. The Company's VMS
project property portfolio consists of the Reed Lake Project,
Copper Project, McClarty Lake Project, Sails Lake Project, Puella
Bay Project and Morton Lake Project. Outside of the Snow Lake camp,
the Company holds massive sulphide prospective properties near the
past producing Fox Lake and Ruttan copper-zinc mines, near the
communities of Lynn Lake and Leaf Rapids in northern Manitoba. In
addition to the copper-zinc massive sulphide deposit prospects, VMS
has extensive land holdings prospective for nickel-copper deposits
north of Thompson and at South Bay in northern Manitoba and one
project, Cedar Lake, in the southern portion of the Thompson Nickel
Belt. All VMS Ventures Inc. properties are located in the mining
friendly province of Manitoba, Canada.
About Widescope Resources
Prior to the developments noted above, the Company, through its
65% owned subsidiary, Pinefalls Gold, was primarily engaged in
exploring for mineral resources on its mining claims in the area of
Bissett, Manitoba. The claims are included in the Rice Lake
greenstone belt and cover an area of approximately 2500
hectares.
VMS Ventures Inc. currently has a profile on Corebox.net which
is updated as soon as assay results are released. The link to visit
our Corebox profile is:
http://www.corebox.net/properties/reed_lake/.
Investors are invited to visit the VMS Ventures IR Hub at
http://www.agoracom.com/IR/VMSVentures where they can post
questions and receive answers or review questions and answers
already posted by other investors. Alternatively, investors are
able to e-mail all questions and correspondence to VMS@agoracom.com
where they can also request to be added to the investor e-mail list
to receive all future press releases and updates in real time.
Statements about the Company's future expectations and all other
statements in this press release other than historical facts are
"forward looking statements" within the meaning of Section 27A of
the Securities Act of 1933, Section 21E of the Securities Exchange
Act of 1934 and as that term defined in the Private Litigation
Reform Act of 1995. The Company intends that such forward-looking
statements be subject to the safe harbors created thereby. Since
these statements involve risks and uncertainties and are subject to
change at any time, the Company's actual results may differ
materially from the expected results.
ON BEHALF OF THE BOARD OF DIRECTORS
John Roozendaal B.Sc., President & Director
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: VMS Ventures Inc. Keith Patey Director of
Communications (604) 986-2020 or Toll Free: 1-866-816-0118 (604)
986-2021 (FAX) www.vmsventures.com Coal Harbor Communications Dale
Paruk (604) 662-4505 or Toll Free: 1-877-345-3399
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