VMS Ventures Inc.

VMS Ventures Inc.

July 07, 2011 13:58 ET

VMS Reports HudBay Minerals Completes Exploration Expenditures for Year One on Four Option Properties Surrounding the Reed Copper Project Joint Venture

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2011) - VMS Ventures Inc. (TSX VENTURE:VMS) ("VMS") is pleased to announce that HudBay Minerals Inc. (TSX:HBM)(NYSE:HBM) ("HudBay") has completed year one option commitments on four properties surrounding the Reed Copper project. The four option properties are: Super Zone, Northeast, Northwest and Tower, in which HudBay has the right to earn a 70% joint venture interest and, upon earning such interest, VMS would retain a 30% interest.

HudBay has completed 17 exploration diamond drill holes to date on the option and Joint Venture properties, including four holes on the Reed Copper project (not including definition and geotechnical holes), eight holes and one deepened hole on the Super Zone option, three holes on the Tower Zone option, three holes in the Northwest option and one hole in the Northeast option. On May 17, 2011 VMS and HudBay announced the discovery of 7.18 meters of 7.44% copper (from 133.89 to 141.07 metres) in hole RLE006. Follow-up work has been on-going including additional drilling, and surface and borehole pulse electromagnetic surveys. Assays from additional holes on the new discovery and other exploration targets are expected in a few weeks.

Neil Richardson, VMS' Chief Operating Officer states: "We are pleased with HudBay's commitment to the option properties and the continuing advancement of the Reed Copper project. HudBay is continuing exploration with two diamond drills testing geophysical and geological targets on the option properties."

Reed Copper Project Joint Venture

A preliminary economic assessment and technical activities required for permitting, including metallurgical and geotechnical testing and mine design, are underway with the expectation of a mine construction decision by year-end.

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 property. The parties have also entered into four option agreements which grant HudBay the right to earn a 70% interest in properties surrounding the joint venture property held by VMS.

For additional details on the Reed 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.

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, 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.


John Roozendaal, 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.
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