VMS Ventures Inc.
TSX VENTURE : VMS

VMS Ventures Inc.

May 08, 2008 06:30 ET

VMS Ventures Inc.: Reed Lake Discovery Zone Update to Shareholders

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 8, 2008) - VMS Ventures Inc. (TSX VENTURE:VMS) (the "Company") is pleased to provide a Corporate Update on its progress at its Reed Lake Discovery Zone near Snow Lake, Manitoba.

This Update is designed to summarize VMS Ventures' accomplishments at the Reed Lake Discovery based on the significant understandings of the deposit gained by our geological team, and to inform shareholders of the plans and opportunities ahead.

The Update is divided into two sections. First, this executive summary, which briefly outlines what we have learned, what it means and what we will do next. Second, and to be published next week, a more detailed geological report that will describe our team's analytical processes and the geologic rationale they are using to define and expand this deposit.

Executive Summary

After eight months and thirty-seven drill holes at the Discovery Zone, the VMS team has reached a point where we can now usefully summarize the knowledge acquired and explain the rationale for our plans to expand the deposit at our Reed Lake Discovery Zone.

The three drill programs have provided an abundance of geological data that is invaluable to understanding the deposit. We can now better explain the nature and meaning of the rock through our examination of the drill intercepts, and with the help of the various geophysical and geochemical tools used, we are now able to project its strike and dip and consider more clearly its size potential.

Based on this analysis, our current drill program (underway) is designed to drill deeper from the southwest back against the dip and to step out to the west following the strike of the deposit.

Significant characteristics of the deposit include:

a) Portions of the deposit have metal values that are typical of the larger Flin Flon-Snow Lake Cu-Zn deposits, which indicate the deposit has minable grades;

b) The deposit also exhibits good evidence of metal zonation with copper and zinc-rich parts within the same drill cores, which is common to mined deposits in the belt;

c) The presence of magnetite at the stratigraphic top of the sulphide body suggests that all available sulphur (and presumably the copper and zinc) in the magma chamber from which the deposit originated was used in the formation of the deposit, i.e., the deposit may have a substantial size;

d) The cross cutting alteration observed to date is mostly pale green to green chlorite, which suggests that the main portion of the alteration zone, which will be black chlorite, and presumably the central portion of the mineralizing system, has not yet been intersected;

e) The presence of identifiable sulphide blocks within intervals of NSS indicates that some of the sulphides have slumped into their present position from a topographically higher position. This suggests that the portion of the deposit we have discovered to date appears to be what is known as a 'debris flow', and therefore is only a part of the deposit.

f) The deposit comes to within 30 m of the surface and, to date, extends more than 180 m below the surface;

g) The Main lense is open at depth and to the west;

h) The East lense is open at depth and to the east; and

i) The geology and geophysical information are now correlatable. Both the airborne and ground magnetic results are not only correlatable with the sulphide lense drilled to date, but extend to the west for another 300 m.

It has been reported previously, but is worth noting again, that the infrastructure advantages of this Manitoba, Canada discovery are significant. Manitoba is rated by the Fraser Institute of Vancouver, Canada as the 5th best jurisdiction in the world for exploration. The discovery is within 150 meters of the paved highway that is less than 90 minutes from the mining centers of Flin Flon and Snow Lake, and the electricity costs are among the lowest in North America.

There is new Plan View map now on the website which will better allow you to follow the drill program's progress. The link to the Plan View map is http://www.vmsventures.com/image_pages/image021.asp.

One drill continues on the Discovery Zone and a second drill is now in place to begin drilling the alteration zone discovered at the Tower Zone, 1,000 m to the east.

The DeepEM and ground magnetics surveys are near completion with reports expected shortly. Down hole surveying is again underway.

Approximately 21 line kilometers of gravity survey data have now been collected at Reed Lake. The grid coverage area is roughly centered over the discovery zone and extends over an area of 2.5 km by 2.1 km. The data are being processed to produce a 3D model of the gravity anomalies detected. The preliminary results show a prominent gravity high at the discovery site. The direct relationship between the gravity anomaly and the sulphide mineralization is not fully understood and will require further drilling to establish but the association of the gravity high directly over the known area of mineralization is considered very encouraging for the survey's potential to guide our exploration of this deposit.

Data from all the surveys are anticipated to arrive in stages over the next ten days with modeling of the results to follow. Drill number three will be mobilized and utilized to test targets stepping out to the west and will follow targets confirmed or established by the various surveys mentioned.

All technical information in this release has been reviewed by the Qualified Person, Dr. George Gale, P. Eng. Samples are prepared and analyzed at TSL Laboratories in Saskatoon, Saskatchewan using ICP-MS and Fire Assay analytical methods.

VMS Ventures Inc. is focused primarily on acquiring, exploring and developing copper-zinc properties in the Flin Flon-Snow Lake VMS Belt. The Company also holds the largest land package considered prospective for nickel-copper mineralization at Lynn Lake, which is to date Canada's third largest nickel producing camp. The Company's project portfolio consists of the Snow Lake VMS project, the Lynn Lake Gabbros nickel-copper project, the Nickel Belt project, the South Bay nickel-copper-cobalt PGE property, and the Eden Lake Carbonatite Complex, Specialty Metals property. All VMS Ventures Inc. properties are located in the mining friendly province of Manitoba, Canada.

ON BEHALF OF THE BOARD OF DIRECTORS

Rick Mark, CEO & Chair

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • VMS Ventures Inc.
    Keith Patey
    Director of Communications
    (604) 986-2020 or Toll Free: 1-866-816-0118
    (604) 986-2021 (FAX)
    Website: www.vmsventures.com
    or
    Coal Harbor Communications
    Dale Paruk
    (604) 662-4505 or Toll Free: 1-877-642-6200