VMS Reports Update on Reserves and Resources at Reed Mine
March 27 2014 - 10:35AM
Marketwired Canada
VMS Ventures Inc. (TSX VENTURE:VMS) ("VMS Ventures" or the "Company") is pleased
to announce an update on the Reed mine reserves and resources. VMS Ventures owns
30% of the project and is carried to production. Hudbay Minerals Inc.
(TSX:HBM)(NYSE:HBM) ("Hudbay") owns 70% and is the Operator.
Of Hudbay's estimated $72 million capital construction budget for the Reed mine
project, approximately $64.9 million has been spent to February 28, 2014. As of
that date, project development had advanced 2,927 metres with the mine producing
82,062 tonnes of ore from a combination of drift development in ore and longhole
stope mining. The project is on budget and on schedule and is expected to reach
commercial production by the second quarter of 2014.
The Reserve and Resource tables below are stated at 100% and VMS holds a 30%
joint venture interest in the Reed mine.
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Reed Mine Probable Mineral Reserves - January 1, 2014(1)
Tonnes Cu (%) Zn (%) Au (g/t) Ag (g/t)
2,121,000 3.80 0.50 0.42 5.28
Notes:
(1)The zinc price used for the mineral reserve estimation was US$1.06 per
pound (includes premium), the copper price was US$3.00 per pound, the gold
price was US$1,250.00 per ounce and the silver price was US$25.00 per ounce
using an exchange of 1.05 C$/US$
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Reed Mine Inferred Mineral Resources - September 30, 2013(1)
Tonnes Cu (%) Zn (%) Au (g/t) Ag (g/t)
233,000 4.31 0.52 0.38 4.57
Notes:
(1)Mineral resources that are not mineral reserves do not have demonstrated
economic viability. The above mineral resources are exclusive of mineral
reserves and were estimated using the same metals prices as were used for
the estimate of mineral reserves at the Reed mine.
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-- To estimate the mineral reserves, Hudbay applies their 12-step process
to the measured and indicated mineral resources, which includes
determination of the integrity and validation of the data collected,
including confirmation of specific gravity, assay results and methods of
data recording. The process also includes determining the appropriate
geological model, selection of data and the application of statistical
models including probability plots and restrictive kriging to establish
continuity and model validation. The resultant estimates of measured and
indicated mineral resources are then converted to proven and probable
mineral reserves by the application of mining dilution and recovery, as
well as the determination of economic viability using full cost
analysis. Other factors such as depletion from production are applied as
appropriate.
-- Hudbay used a similar 12-step process to estimate the measured and
indicated resources.
-- The zinc price used for mineral reserve and resource estimations was
US$1.06 per pound (includes premium), the copper price was US$3.00 per
pound, the gold price was US$1,250.00 per ounce and the silver price was
US$25.00 per ounce using an exchange of 1.05 C$/US$. Mineral resources
are exclusive of and additional to stated mineral reserves. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability.
-- For additional details relating to the estimates of mineral reserves and
resources at the Reed mine, including data verification and quality
assurance/quality control processes refer to the "Pre-Feasibility Study
Technical Report on the Reed Copper Deposit, Central Manitoba, Canada"
as filed on SEDAR by VMS Ventures Inc. on May 14, 2012.
Please visit the VMS website at
http://www.vmsventures.com/investors/photo-gallery to view a slide show of the
latest progress on the Reed mine.
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 mine, which is subject to a 70-30 JV with Hudbay Minerals and reached
initial production in Q4-2013, 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 the
Black Creek property in the Sudbury mining camp.
VMS Ventures owns approximately 23.9% of North American Nickel Inc. (TSX
VENTURE:NAN). For more information on North American Nickel Inc., please visit
www.northamericannickel.com.
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, B.Sc., President
VMS Ventures Inc.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
VMS Ventures Inc.
Evan Sleeman
Director
(604) 986-2020 or Toll Free: 1-866-816-0118
www.vmsventures.com
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