VMS Announces NI 43-101 Mineral Resource for the Reed Lake Deposit at 2.55 Million Tonnes @ 4.52% Copper in the Indicated Catego
April 01 2011 - 6:30AM
Marketwired
VMS Ventures Inc. (TSX VENTURE: VMS) ("VMS") and Joint Venture
partner HudBay Minerals Inc. (TSX: HBM)(NYSE: HBM) ("HudBay") are
pleased to announce a National Instrument 43-101 compliant resource
estimate at the Reed Lake polymetallic deposit, near Snow Lake,
Manitoba.
Reed Lake Copper Project (1-5)
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Mineral Resource Contained Metal
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Au Ag Cu Zn
Category Tonnes (g/t) (g/t) (%) (%) Au oz Ag oz Cu lbs Zn lbs
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Indicated 2,550,000 0.64 7.86 4.52 0.91 52469 644382 253572000 51051000
Inferred 170,000 0.38 4.55 4.26 0.52 2077 24868 15932400 1944800
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Notes:
1. CIM definitions were followed for the estimation of mineral resources.
Drilling was included up to February 2011.
2. Mineral resources are estimated at a CUEQ cut-off of 1.5% (CUEQ% equals
Cu% + Zn% x 0.211 + Au g/t x 0.359 + Ag g/t x 0.006) and a minimum two
metre core length.
3. Long term $US metal prices of $900/oz gold, $15.00/oz silver, $2.50/lb
copper and $1.00/lb zinc were used for the estimation of CUEQ. These
prices may be conservative, considering the near-term commencement of
operations.
4. Metal recovery assumptions of 65% gold, 60% silver, 95% copper and 50%
zinc were used for the estimation of CUEQ
5. Specific gravity measurements were taken on a portion of the samples,
where actual measurements were not available either stoichiometric
values were calculated or average SG values were used.
The NI 43-101 compliant resource was provided today by HudBay
Minerals for the Reed Lake copper project. It is supported by Neil
Richardson, P.Geo, QP for VMS Ventures.
The new resource provides the basis to conduct a prefeasibility
study. The Joint Venture project, in which VMS has a 30% carried
interest and operator HudBay has a 70% interest, represents a high
grade, near surface copper deposit that can be accessed via a ramp
and in which ore can be trucked to the Flin Flon concentrator.
Permitting and pre-feasibility efforts will be conducted by HudBay
Minerals throughout 2011 with the expectation of a construction
decision by year end.
Neil Richardson, COO states, "We are very pleased that this
initial resource contains such remarkably high copper values. With
today's copper prices, and when we combine the favourable
characteristics of the Reed Lake deposit, in particular the very
high grade copper component being near vertical, and near surface,
with the likelihood this will be in production next year, benefits
should flow to our shareholders much more quickly than would be the
case if we had grades more typical of this belt. We look forward to
HudBay developing the project quickly."
HudBay drilling is now underway testing for additional lenses of
sulphide mineralization in and around the Reed Lake deposit,
targeting anomalies identified in bore hole, TDEM surface and VTEM
airborne geophysical surveys that have been completed on the JV
property.
Exploration throughout the property package, outside of the
immediate area of the deposit, is also underway with up to 15 drill
holes planned to be completed before the end of June. This program
will test priority targets identified on the four optioned claim
packages surrounding the Reed Lake JV property. For up to date
proposed targets please visit our website at the link below.
http://www.vmsventures.com/Projects/Manitoba-Properties/VMSHudBayJointVentures/VMS-Ventures---HudBay-Joint-Venture-Project/Reed-Lake-VMSHudBay-Joint-Venture/default.aspx
The Reed Lake Deposit mineral resource estimate was directed by
Rob A. Carter, P.Eng of HudBay Minerals Inc. who is a Qualified
Person as defined by NI-43-101. The NI 43-101 technical report will
be filed on SEDAR in its entirety within 45 days following the date
of this press release.
Cowan River drilling update
VMS 100% owned Cowan River project is 10km to the east of its
Reed Lake discovery and is approximately half way to the former
producing Spruce Point mine.
The Company is presently drill testing three prominent anomalies
on the Cowan River property and expects results in the next two
weeks. Cowan River is not a part of the HudBay JV agreements.
About VMS Ventures Inc.
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.
These properties are located in the mining friendly province of
Manitoba, Canada. The Company also has optioned three properties in
the Sudbury mining camp. They are Terra Incognita, Golden Pine and
Black Creek.
Forward Looking Statement
Some of the statements contained herein may be forward-looking
statements which involve known and unknown risks and uncertainties.
Without limitation, statements regarding potential mineralization
and resources, exploration results, and future plans and objectives
of the Company are forward-looking statements that involve various
risks. The following are important factors that could cause the
Company's actual results to differ materially from those expressed
or implied by such forward-looking statements: changes in the world
wide price of mineral commodities, general market conditions, risks
inherent in mineral exploration, risks associated with development,
construction and mining operations, the uncertainty of future
profitability and the uncertainty of access to additional capital.
There can be no assurance that forward-looking statements will
prove to be accurate as actual results and future events may differ
materially from those anticipated in such statements. VMS Ventures
Inc. undertakes no obligation to update such forward-looking
statements if circumstances or management's estimates or opinions
should change. The reader is cautioned not to place undue reliance
on such forward-looking statements.
ON BEHALF OF THE BOARD OF DIRECTORS
John Roozendaal, President
VMS Ventures
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
www.vmsventures.com Launch IR Matt Harrington or Dean Hanisch (613)
882-7467
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