VMS Ventures Inc.

VMS Ventures Inc.

January 18, 2012 06:30 ET

VMS Ventures Provides Exploration Target Update at the Reed Copper Deposit and Option Properties Near Snow Lake, Manitoba

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2012) - VMS Ventures Inc. (TSX VENTURE:VMS) ("VMS") is pleased to announce an exploration update on targets around the Reed Copper deposit and four option properties. The Reed Copper deposit is located 120 kilometres from Flin Flon, Manitoba and is the subject of a Joint Venture with HudBay Minerals (TSX:HBM)(NYSE:HBM) ("HudBay"). VMS owns 30% of the Reed Joint Venture.

VMS Ventures COO Neil Richardson, states: "2012 promises to be an exciting year with exploration and development planned for the Reed Copper deposit and surrounding exploration properties. The HudBay and VMS joint management committee have approved a budget for a 4,000 metre diamond drill program focusing on targets around the Reed Copper deposit and an additional 4,000 metres on the option properties, with a primary focus on the Reed North target. Recent work by VMS and HudBay has resulted in the discovery of two additional mineralized zones within our option properties. These recent discoveries are further evidence supporting our belief in the camp scale potential at the Reed project. The drilling will occur as soon as freeze-up and site preparation is completed."

Reed Copper Deposit

The copper rich lens (Zone 10) at the Reed Copper deposit is still open down plunge. A proposed hole will be collared south of the deposit targeting the mineralization horizon approximately 600 metres below surface (see figure 1). Drill site preparation is on-going, but start-up is expected to be delayed due to the unusually mild winter weather and significant snow accumulation thus far. Additional targets are located just north of the deposit and are spatially associated with drill holes RD-08-45, RLD037 and RD-08-42DNP. Hole RD-08-42DNP is being re-surveyed with borehole time-domain geophysics using two different loop configurations to accurately determine the location of the anomaly for drill testing this winter.

To view Figure 1 click on: http://media3.marketwire.com/docs/vms1.jpg

Option Properties

VMS and HudBay are parties to four option agreements which grant HudBay the right to earn a 70% joint venture interest in properties held by VMS adjacent to the Reed Copper deposit. Among the exploration results from the option properties is the Reed North discovery, located 1.8 kilometres north of the Reed Copper deposit, which included 7.18 metres grading 7.44% Cu, 0.23% Zn, 0.48 g/t Au and 7.57 g/t Ag in hole RLE006 (see figure 2).

To view Figure 2 click on: http://media3.marketwire.com/docs/vms2.jpg

A borehole pulse EM survey compilation done for VMS by Koop Geotechnical outlined the Reed North multi-lens base metal discovery. To date, fourteen holes have been completed on this new discovery mainly focusing on the western portion of the anomaly. Whole rock geochemical analysis on the drill core indicates that the Reed Copper deposit and the Reed North zone are within the same lithological unit. This horizon is now the focus of an extensive TDEM geophysical survey planned for this winter between the Reed Copper and Reed North zones. HudBay will continue its drilling campaign focusing on the down plunge projection of the mineralized lens.

A second target area of interest is located 3.4 km to the northwest of the Reed Copper deposit. Drill holes RLE008 and RLE020 intersected base metal values of up to 3.34% copper and 2.94% zinc. A borehole pulse EM survey outlined a 400 metre long by 230 metre high modeled plate with hole RLE020 piercing the upper edge of this anomaly. This plate is largely un-tested and is also being considered for drilling within this winter's option property budget/plan.

A third area of interest is a surface pulse time-domain EM anomaly which is located between the historic Highway zone (discovered by Freeport McMoRan in 1970's) and the Reed Copper deposit. This 500 metre long anomaly was detected within favourable volcanic rocks and remains un-tested. The next step for this target is to construct a 3-D model of the anomaly to support in the design of the drill hole platform (see figure 3).

To view Figure 3 click on: http://media3.marketwire.com/docs/vms3.jpg

HudBay is currently working on winter road construction for diamond drilling and geophysical surveys with anticipation of drilling starting in the coming weeks.

Additional details on the NI 43-101 geological resource or the Preliminary Economic Assessment of the Reed Lake Copper deposit are available at www.sedar.com.

Qualified Person

All technical information in this release has been reviewed by Dr. Mark Fedikow, P.Geo., who is the Qualified Person for the Company and Vice President of Exploration and Technical Services, VMS Ventures Inc.

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