VMS Ventures Inc.

VMS Ventures Inc.

May 16, 2012 13:31 ET

VMS Files Prefeasibility Study for the Reed Lake Deposit, Near Snow Lake, Manitoba

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 16, 2012) - VMS Ventures Inc. (TSX VENTURE:VMS) ("VMS") is pleased to announce the Prefeasibility Study of the Reed Lake polymetallic deposit near Snow Lake, Manitoba with Joint Venture partner Hudbay Minerals Inc. (TSX:HBM)(NYSE:HBM) is available for viewing on www.sedar.com.

Reed Copper Deposit Mineral Reserves1 - March 30, 2012
Category Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%)
Probable 2,157,000 0.48 6.02 3.83 0.59
1Shown as 100% of the mineral reserves; VMS has a 30% interest in the Reed Copper project joint venture

The pre-feasibility study prepared by Hudbay and Stantec in respect of the Reed deposit demonstrates that the indicated resources can be converted to reserves and economically viable for extraction by long-hole open stoping at a rate of 1300 TPD.

Reed Copper Project Assumptions and Qualifications

Production at Reed is scheduled to begin at the 260 metre level from Zones 10 and 20 and in Zone 30 from the 135 metre level. Mining is expected to finish in Zone 30 from the 85 metre level, in Zone 20 from the 110 metre level and in Zone 10 on the 285 metre level.

Run of mine ore will be transported by truck directly to Flin Flon where it will be crushed to less than 150 millimeters. The Reed ore will be batched independently through the Flin Flon concentrator with assumed metal recoveries of 94% copper, 58% gold and 62% silver producing a copper concentrate.

Access to the underground mineral resources will be via a trench, portal and decline located near the center of the surface site. The decline will be excavated 6 metres wide and 5 metres high to a depth of 510 metres from surface and be able to accommodate a 60 tonne truck. Ore and development waste will be hauled to surface via the decline. Each mining level, spaced 25 metres vertically, will be accessed from the decline and will be 5.5 metres wide by 4.5 metres high to accommodate a 10 yard load, haul and dump scooptram.

The project will be powered by diesel generators and power distributed to surface buildings and underground.

Stantec provided capital estimates for: surface infrastructure, underground dewatering, indirect costs (contractor, construction management). Hudbay provided capital estimates for underground development and construction, mine equipment, all other indirect costs, operating costs, sustaining capital, production schedule and metal price forecast.

Qualified Person

Neil W. Richardson, P.Geo, Chief Operating Officer of VMS Ventures Inc., a Qualified Person in accordance of Canadian Regulatory requirements as set out in NI 43-101, is responsible for the information in this release.

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.


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.

Contact Information

  • VMS Ventures Inc.
    Evan Sleeman
    (604) 986-2020 or Toll Free: 1-866-816-0118