VMS Ventures Inc.
TSX VENTURE : VMS

VMS Ventures Inc.

January 20, 2011 14:38 ET

VMS Updates Exploration Plans for Its 100% Owned Properties, Flin Flon-Snow Lake Greenstone Belt, Manitoba

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 20, 2011) - VMS Ventures Inc. (TSX VENTURE:VMS) ("VMS") is pleased to update its shareholders on the Company's exploration plans on its extensive 100% held property package in the Flin Flon – Snow Lake Greenstone Belt, Manitoba, Canada.

100% OWNED PROPERTIES

Exploration and drill permits have now been received for several of the Company's project areas including Morton Lake, Copper-South, Copper Extension, Puella East and Sails Lake. More permits for additional projects are anticipated in the coming weeks. All of these property packages are owned and operated by VMS Ventures Inc and are separate from the Company's Reed Lake project Joint Ventures with HudBay Minerals Inc. (TSX:HBM)(NYSE:HBM).

A drilling contract has been awarded to Westcore Drilling of Salmo, B.C., and road building and line cutting contracts have also been signed. As detailed in this release, exploration activities will commence immediately and the first drill hole is expected to be collared in the last week of January. This winter's drill program will test numerous potential base metal VTEM and Time Domain Electromagnetic anomalies throughout the Company's property package and is expected to continue into April, or when freeze up ends.

Morton Lake

The Morton Lake project is located 25 km west of Snow Lake. The project boundary is within 500 m of the past producing Dickstone copper-zinc mine. Because of the geological similarity to the rocks hosting the Dickstone deposit, targets in the northwest portion of this property are a priority for drilling this season.

The geological rock unit that hosts the Dickstone mineralization has been mapped on the VMS Morton Lake property and a 1.5 – 2 km segment will be surveyed using DeepEM ground geophysics. Both the line-cutting and geophysical surveying contracts have been awarded and work is expected to commence in the next few weeks.

The DeepEM system being employed is capable of detecting massive sulphide bodies to depths well below the depth of an airborne survey, up to 800 m below surface. HudBay Minerals used it to help discover its Lalor Lake deposit in 2007, approximately 20 km to the west of the VMS Morton Lake property.

Targets generated from the DeepEM survey, along with airborne geophysical anomalies already identified elsewhere on the property, will be drilled this winter. Historical drill records compiled by the Company indicate abundant disseminated base metal mineralization accompanied by alteration in these shallow drill holes. On this basis, the area is interpreted to be highly prospective for base metal massive sulphide-type mineralization of economic grade.

Finally, high-precision trace element geochemical studies of the Reed Lake copper-zinc deposit host rocks were conducted by Dr. Alan Bailes in 2010. The similarity between the geochemistry of the VMS/HudBay Reed deposit host rocks and those hosting the Dickstone deposit resulted in the Company doubling its land position in the area to 90 sq. km in 2010.

Sails Lake Update

On January 11th 2011, the Company announced a gold discovery at its Sails Lake project featuring an intercept of 56.89 m (186.65 feet) grading 1.21 grams/tonne gold starting within 40 metres of surface.

A follow-up program of new line-cutting, Induced Polarization (IP) geophysical surveys, and Mobile Metal Ion geochemical soil sampling will commence in February, with outcrop washing, detailed geological mapping and prospecting for additional outcropping mineralization to follow in the spring. Drill core samples of the gold mineralization from hole SA-10-007 have been taken for petrographic and lithogeochemical study to determine the mineralogical siting to the gold. Understanding the host lithology will assist Company geologists in planning the next drill program.

Paleozoic Cover Projects

Copper Project (Includes Copper North, Copper South and Copper Extension Properties)

The Copper project covers 185 sq. km of prospective geology in the Flin Flon Snow Lake greenstone belt of Manitoba. The property is located approximately 45 km south of the mining community of Snow Lake, Manitoba where HudBay Minerals operates the Chisel North zinc-copper-gold-silver mine.

Work permits for the Copper Project have now been received and drill road construction is underway. Four priority drill targets have been selected for this program based on the Company's extensive geological-geophysical-geochemical database for the property. The four targeted VTEM anomalies have been Maxwell modeled by Condor Consulting of Boulder, Colorado. Several volcanogenic massive sulphide-type deposits have been discovered on or adjacent to the Company's property package and the same host rocks to the deposits are covered by Company claims or Mineral Exploration Licenses.

Several hundred discrete geophysical anomalies were detected in VTEM airborne geophysical surveys commissioned by the Company. These have undergone preliminary geophysical and geochemical interpretation, and select target areas have been prioritized for Maxwell modeling and subsequent drilling.

The Copper Project area is covered by a relatively thin layer (25 – 40 m) of younger Paleozoic rock. VMS believes many deposits remain to be discovered in the greenstone belt that underlies the Paleozoic cover that has impeded historic exploration efforts. Advances in exploration technology including increased depth penetration of geophysical and geochemical survey techniques combined with compilation of historical data sets provide exploration geologists a new opportunity to discover new mines in this area of an under-explored world class belt. The copper-zinc-gold-silver deposit discovered at Reed Lake by VMS Ventures in 2007, demonstrates the prospectivity of the "covered" areas of the Flin Flon-Snow Lake belt.

Upon completion of winter drill roads, diamond drilling equipment will be mobilized onto collar locations and testing of targets will commence. Drilling is expected to commence in late January.

McClarty Lake (Includes McClarty South, McClarty North & Farwell Properties)

The Company's McClarty Lake project covers an area in excess of 300 sq. km of geology prospective for hosting Volcanogenic Massive Sulphide copper-zinc-gold-silver deposits like that discovered on the Company's Reed Lake property in 2007. The property is located 45 km to the southwest of Snow Lake, Manitoba. The McClarty Lake land package surrounds a base and precious metal discovery made in the mid 1990's which is now being explored by Troymet Exploration Corp., and HudBay Minerals Inc. (TSX:HBM)(NYSE:HBM). Drill intercepts from the property reported by Troymet Exploration Corp., include 4 metres grading 4.17 g/t gold in drill hole DYC-016 and 15.30 metres grading 3.46% zinc in drill hole MC08-08.

Significant drilling activity on the 5 claims in the area being explored by Troymet and HudBay Minerals, which cover an area of approximately 6 sq. km, is expected at these properties during the upcoming drill season. VMS will assess the results of this program, and develop targets on its adjacent claims that occur along strike of the Troymet-HudBay mineralized horizon. Drilling permits for the Company's properties are pending.

Other Properties:

Exploration and drill permits are pending for the Leak Lake, 9-7, and Reed properties. Drill collar locations will be based on Maxwell modeled VTEM anomalies with significant Mobile Metal Ion geochemical signatures. Additional information regarding drill targets on these properties will be released upon receipt of work permits.

UPDATE ON THE VMS-HUDBAY REED LAKE DEPOSIT JOINT VENTURES

HudBay Minerals Inc. has now released results of the first 14 infill drill holes from its initial diamond drill program at Reed Lake. In a December 10th 2010 news release it was announced that the first step out drill hole RLD015 testing for mineralization outside of the known deposit was successful and intercepted 10 m of massive sulphide 210 m down plunge of the deepest hole previously drilled on the deposit. HudBay has reported that they intend to complete a National Instrument 43-101 resource estimate for the deposit within the first quarter of 2011. Definition drilling has now been completed with results available in the next few weeks. The focus will now be on defining the mineralization up-plunge from RLD015 to previous drilling by VMS. New step-out targets will also be tested with the aim of expanding the Reed Lake deposit. Work on the four optioned property packages surrounding the Reed Lake Deposit joint venture is expected to begin in winter 2011.

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

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