VMS Ventures Inc.: Reed Copper Project and Reed North Area Exploration Update, Snow Lake, Manitoba
April 24 2012 - 3:44PM
Marketwired Canada
VMS Ventures Inc. (TSX VENTURE:VMS) ("VMS") announces results from the 2012
winter drilling program at the "Reed Copper project" and "Reed North". The
operator of the projects is Hudbay Minerals Inc. (TSX:HBM)(NYSE:HBM) ("Hudbay").
At the Reed Copper project, one hole was completed and one hole was abandoned
due to deteriorating ice conditions. A total of 1,632 metres were drilled. Near
the Reed Copper deposit, hole RLE030 was drilled to a depth of 725 metres
testing a Time-Domain Electromagnetic anomaly. In the Reed North area, two holes
were completed and two other holes were abandoned. A total of 1,475 metres were
drilled at Reed North.
Site preparation is now on-going for the underground development of the Reed
Copper project. Trenching for the portal entrance has begun, an office trailer
has been mobilized to the site and other surface infrastructure has been
established.
Neil Richardson, VMS' Chief Operating Officer, states: "We were disappointed to
lose the initial hole testing for the down plunge extension of copper rich Zone
10 at Reed, so we will have to wait until next winter to determine the presence
of mineralization between the 500 and 800 metre levels. Drilling of the Reed
North area continues to show interesting intersections, but no significant
lenses have been discovered to date. The trenching of the portal entrance at
Reed has begun and represents the first milestone in bringing this deposit to
commercial production."
Two holes tested the down plunge continuation of the high grade copper lens
(Zone10) below the current planned mining levels. The first hole, RLD040, was
collared on an un-named lake just south of the deposit. This hole reached a
depth of 526 metres before the drill was pulled off the collar site due to
deteriorating ice conditions. Hole RLD041 was collared and intersected the
projected Zone 10 horizon around the 1,000 metre level. No significant sulphides
were noted in the core at that depth. Follow-up BHPEM survey failed to detect
any significant sulphides. The 500 to 800 metre level of the projected Zone 10
horizon remains untested.
Four holes were collared in the Reed North area. Two holes reached their target
depth and two were abandoned due to drilling problems. Hole RLE031 intersected
1.12m of 12.63% zinc. Follow-up hole RLE034 targeted the up-dip projection of
this Zn-rich lens, but failed to intersect any significant economic
mineralization.
Hole RLE030 targeted a time-domain electromagnetic anomaly situated between the
Reed Copper deposit and the Highway Zone. This hole intersected near-solid
pyrrhotite that explained the EM anomaly, but no economic sulphides were
observed.
REED COPPER AND OPTION PROPERTIES ASSAY DATA
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Hole Length
Number From (m) To (m) (m) Cu % Zn % Au (g/t) Ag (g/t)
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RLE031 561.40 562.52 1.20 0.76 12.63 1.44 5.45
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RLE030 No Significant Assays
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RLE034 No Significant Assays
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RLD041 No Significant Assays
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True widths unknown
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REED COPPER AND OPTION PROPERTIES COLLAR INFORMATION
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UTM
UTM East UTM North Elevation Length
Hole Number (1) (1) (1) Azimuth (2) Dip (metres)
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RLE030 393950 6049135 295 30 -55 725.00
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RLE031 395191 6050361 292 360 -60 604.00
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RLE032 395191 6050361 292 360 -52 81.00
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RLE033 395191 6050361 292 360 -52 143.00
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RLE034 395191 6050361 292 360 -52 630.00
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RLD040 393600 6048550 290 335 -62 526.00
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RLD041 393035 6048643 292 35 -68 1090.00
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(1) Universal Transverse Mercator / North American Datum 1983 / Zone 14
(2) "Azimuth" is degrees from True North
REED COPPER PROJECT JOINT VENTURE UPDATE
On April 2, 2012, VMS and Hudbay announced a positive prefeasibility study on
the Reed Copper project. For details see press release dated April 2, 2012
available at: http://www.vmsventures.com. Highlights include production
commencing Q3 2013, average expected reserve grade of 3.83% copper with a 94%
recovery rate.
On December 19, 2011 VMS and Hudbay announced a preliminary economic assessment
and technical report on the Reed Copper deposit.
On July 6, 2010 VMS and HudBay announced they had entered into a joint venture
agreement in which HudBay and VMS have 70% and 30% interests, respectively, in
the Reed Copper project and two claims immediately south of the deposit. The
parties have also entered into four option agreements which grant HudBay the
right to earn a 70% interest in properties held by VMS and adjacent to the Reed
Copper deposit property.
For additional details on the Reed Copper deposit, see VMS' NI 43-101 compliant
technical report entitled "Technical Report Reed Deposit, Central Manitoba,
Canada" dated March 31, 2011 available at www.sedar.com.
QUALIFIED PERSON
All technical information in this release has been reviewed by Dr. Mark Fedikow,
P.Geo, who is the Qualified Person for the Company and Vice President of
Exploration and Technical Services, VMS Ventures Inc.
QUALITY ASSURANCE AND QUALITY CONTROL
Exploration core drilling was NQ size. The core was logged and mineralized
intersections were marked for sampling and assaying by geologists and
geotechnicians employed by HudBay's Hudson Bay Exploration and Development
Company Limited (HBED) subsidiary. The marked intersections or intervals were
sawn in half by a diamond saw and one half of the core was placed in plastic
bags and tagged with unique sample numbers, while the second half was returned
to the core box and stored. Each bagged core sample was transported to HudBay's
Hudson Bay Mining and Smelting Co., Limited (HBMS) subsidiary's assay laboratory
in Flin Flon, Manitoba where it was dried, crushed and pulverized and a 250-gram
sample was prepared for assaying at Acme Analytical Laboratories Ltd., an
independent company in Vancouver, B.C., or the HBMS assay laboratory. From each
250 gram sample 0.25 grams was removed and leached in aqua regia and analyzed by
ICP-AES for Ag, Cu, Zn, As, Pb, Ni and Fe. Also from the 250 gram sample, 30
grams were removed for gold determination by fire assaying with an ICP-AES or
gravimetric finish at the Acme laboratory or an Atomic Absorption or gravimetric
finish at the HBMS laboratory.
Assay integrity is monitored internally with a quality control program, which
includes the use of standard reference materials, blanks, duplicates and repeats
and externally through national and international programs. In addition, within
each group of 20 core samples, one core sample has a second 250 gram split
collected that was check assayed at a different laboratory, either the HBMS
laboratory in Flin Flon or at the Acme laboratory in Vancouver, B.C. This news
release provides core lengths and estimates of vertical thickness only. True
widths are not provided. Where metal assays are provided for intersections they
are either a single assay of a sample of the entire intersection length or a
composite of assays calculated from interval weighted assays over the
intersection length.
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 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.
VMS Ventures owns approximately 45% of North American Nickel Inc. (TSX
VENTURE:NAN). For more information on North American Nickel Inc., please visit
www.northamericannickel.com.
ON BEHALF OF THE BOARD OF DIRECTORS
John Roozendaal, President
VMS Ventures Inc.
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