VMS Ventures Inc.
TSX VENTURE : VMS

VMS Ventures Inc.

December 16, 2010 15:31 ET

VMS Ventures Reports Mineralization at 30 Metres From Surface in Zone 30 (Zinc-Copper Lens), Including 15.7m of 6.57% Zinc, From Initial In-Fill Drilling at Its Reed Lake Joint Venture Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2010) - VMS Ventures Inc. (TSX VENTURE:VMS) ("VMS") is pleased to announce drill and assay results from the initial in-fill diamond drill program at the Reed Lake deposit, near Snow Lake, Manitoba, Canada. These results are from holes RDL009 to RDL014 inclusive. They were designed to test the zinc – copper rich lens (zone 30) located near surface. See figure 1, below, which is a plan view of the diamond drill holes and mineralized zones.

Neil Richardson, VMS' Chief Operating Officer, states: "The results for the upper zinc - copper rich lens (zone 30) are very encouraging as they show that the deposit comes within 30 metres of surface, which suggests it is amenable to ramp development and early production from an underground operation. The results emphasize the metal zonation in this polymetallic deposit which, in addition to copper and zinc, also carries appreciable amounts of gold and silver. Metal zonation and significant precious metal credits are common characteristics of massive sulphide deposits in the Snow Lake camp."

Holes RLD009 to RLD012 inclusive were drilled on section line 50 and on the eastern edge of zone 30. Assays have been received for holes RLD009 to RLD014 and are tabled below:

Hole From To Length Au Ag Cu Zn  
Number (m) (m) (m) (g/t) (g/t) (%) (%) Zone
RLD009 129.26 139.04 9.78 1.79 24.55 1.13 4.60 30
 
RLD010 75.74 91.90 16.16 1.59 15.86 1.27 3.21 30
119.47 122.00 2.53 0.03 1.04 0.38 3.48 120
                 
RLD011 48.75 67.14 18.39 1.42 19.07 2.23 3.27 30
                 
RLD012 35.84 51.60 15.76 1.30 13.55 1.53 6.57 30
                 
RLD013 No Significant Mineralization
                 
RLD014 No Significant Mineralization
*True widths unknown*

The in-fill program is the first phase of drilling at the Reed Lake project under a joint venture formed between VMS and HudBay Minerals Inc. (TSX/NYSE:HBM) ("HudBay"). The Reed Lake deposit is a base metal, polymetallic, massive sulphide-type deposit located approximately 100 kilometers from HudBay's concentrator in Flin Flon, Manitoba. Two drills are currently operating on site at Reed Lake. One drill is conducting in-fill drilling in preparation for a National Instrument 43-101 mineral resource estimate, which is expected in the first quarter of 2011. A second drill is drilling deeper exploration holes down plunge to the west of the deposit. On December 10, 2010 VMS reported that the first step out drill hole at Reed Lake intersected 10 metres of 2.39% copper 214 metres down plunge of the known deposit.

Reed Lake Collar Information

  UTM UTM UTM      
Hole North East Elevation Azimuth   Length
Number (1) (1) (1) (2) Dip (metres)
RLD009 6048881.4 394013.9 296.25 225 -70 302
RLD010 6048873.3 394004.9 296.15 225 -60 251
RLD011 6048866.5 393997.8 298.06 225 -45 224
RLD012 6048856.6 393986.7 296.12 225 -43 149
RLD013 6048832.2 394034.5 296.62 225 -43 236
RLD014 6048849.0 394051.8 295.82 225 -65 260
(1) Universal Transverse Mercator / North American Datum 1983 / Zone 14
(2) "Azimuth" is degrees from True North

Drill holes RLD013 and RLD014 were collared on section line 0 and were drilled outside the known mineralized envelopes and testing for extensions of the mineralization laterally towards the southeast. These two holes failed to intersect any significant mineralization.

On July 6, 2010 VMS and HudBay announced that they had entered into a joint venture agreement pursuant to which HudBay has a 70% interest and VMS has a 30% interest in the Reed Lake property and the two claims immediately to the south. The parties have also entered into four option agreements which grant HudBay the right to earn a 70% joint venture interest in properties held by VMS adjacent to the Reed Lake property.

For additional details on exploration at the Reed Lake deposit, see VMS' press releases issued between September 17, 2007 and December 10, 2008, available at www.sedar.com.

To view Figure 1 please click on the following link: http://media3.marketwire.com/docs/VMSmap.pdf

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.

Quality Assurance and Quality Control

Exploration core drilling was NQ size. The core was logged and mineralized intersections were marked for sampling and assaying by geologists and geotechnicians employed by HudBay's Hudson Bay Exploration and Development Company Limited (HBED) subsidiary. The marked intersections or intervals were sawn in half by a diamond saw and one half of the core was placed in plastic bags and tagged with unique sample numbers, while the second half was returned to the core box and stored. Each bagged core sample was transported to HudBay's Hudson Bay Mining and Smelting Co., Limited (HBMS) subsidiary's assay laboratory in Flin Flon, Manitoba where it was dried, crushed and pulverized and a 250-gram sample was prepared for assaying at Acme Analytical Laboratories Ltd., an independent company in Vancouver, B.C., or the HBMS assay laboratory. From each 250 gram sample 0.25 grams was removed and leached in aqua regia and analyzed by ICP-AES for Ag, Cu, Zn, As, Pb, Ni and Fe. Also from the 250 gram sample, 30 grams was removed for gold determination by fire assaying with an ICP-AES or gravimetric finish at the Acme laboratory or an Atomic Absorption or gravimetric finish at the HBMS laboratory.

Assaying integrity is monitored internally with a quality control program, which includes the use of assay sample standards, blanks, duplicates and repeats and externally through national and international programs. In addition, within each group of 20 core samples, one core sample has a second 250 gram split collected that was check assayed at a different laboratory, either the HBMS laboratory in Flin Flon or at the Acme laboratory in Vancouver, B.C. This news release provides core lengths and estimates of vertical thickness only. True widths are not provided. Where metal assays are provided for intersections they are either a single assay of a sample of the entire intersection length or a composite of assays calculated from interval weighted assays over the intersection length.

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

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.
    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