VMS Ventures Inc.
TSX VENTURE : VMS

VMS Ventures Inc.

April 01, 2011 06:31 ET

VMS Announces NI 43-101 Mineral Resource for the Reed Lake Deposit at 2.55 Million Tonnes @ 4.52% Copper in the Indicated Category/HudBay and VMS Drilling Continues

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 1, 2011) - 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)

Mineral Resource Contained Metal
Category Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%) Au oz Ag oz Cu lbs Zn lbs
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

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 propertyFor 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.

Contact Information

  • VMS Ventures Inc.
    Keith Patey
    Director of Communications
    (604) 986-2020 or Toll Free: 1-866-816-0118
    www.vmsventures.com
    or
    Launch IR
    Matt Harrington or Dean Hanisch
    (613) 882-7467