VMS Ventures Inc.: Reed Copper Project and Reed North Area Exploration Update, Snow Lake, Manitoba
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 24, 2012) - VMS Ventures Inc. (TSX VENTURE:VMS) ("VMS") announces results from the 2012 winter drilling program at the "Reed Copper project" and "Reed North". The operator of the projects is Hudbay Minerals Inc. (TSX:HBM)(NYSE:HBM) ("Hudbay").
At the Reed Copper project, one hole was completed and one hole was abandoned due to deteriorating ice conditions. A total of 1,632 metres were drilled. Near the Reed Copper deposit, hole RLE030 was drilled to a depth of 725 metres testing a Time-Domain Electromagnetic anomaly. In the Reed North area, two holes were completed and two other holes were abandoned. A total of 1,475 metres were drilled at Reed North.
Site preparation is now on-going for the underground development of the Reed Copper project. Trenching for the portal entrance has begun, an office trailer has been mobilized to the site and other surface infrastructure has been established.
Neil Richardson, VMS' Chief Operating Officer, states: "We were disappointed to lose the initial hole testing for the down plunge extension of copper rich Zone 10 at Reed, so we will have to wait until next winter to determine the presence of mineralization between the 500 and 800 metre levels. Drilling of the Reed North area continues to show interesting intersections, but no significant lenses have been discovered to date. The trenching of the portal entrance at Reed has begun and represents the first milestone in bringing this deposit to commercial production."
Two holes tested the down plunge continuation of the high grade copper lens (Zone10) below the current planned mining levels. The first hole, RLD040, was collared on an un-named lake just south of the deposit. This hole reached a depth of 526 metres before the drill was pulled off the collar site due to deteriorating ice conditions. Hole RLD041 was collared and intersected the projected Zone 10 horizon around the 1,000 metre level. No significant sulphides were noted in the core at that depth. Follow-up BHPEM survey failed to detect any significant sulphides. The 500 to 800 metre level of the projected Zone 10 horizon remains untested.
Four holes were collared in the Reed North area. Two holes reached their target depth and two were abandoned due to drilling problems. Hole RLE031 intersected 1.12m of 12.63% zinc. Follow-up hole RLE034 targeted the up-dip projection of this Zn-rich lens, but failed to intersect any significant economic mineralization.
Hole RLE030 targeted a time-domain electromagnetic anomaly situated between the Reed Copper deposit and the Highway Zone. This hole intersected near-solid pyrrhotite that explained the EM anomaly, but no economic sulphides were observed.
REED COPPER AND OPTION PROPERTIES ASSAY DATA
Hole Number From (m) To (m) Length (m) Cu % Zn % Au (g/t) Ag (g/t)
RLE031 561.40 562.52 1.20 0.76 12.63 1.44 5.45
RLE030 No Significant Assays
RLE034 No Significant Assays
RLD041 No Significant Assays
True widths unknown
REED COPPER AND OPTION PROPERTIES COLLAR INFORMATION
Hole Number UTM East (1) UTM North (1) UTM Elevation (1) Azimuth (2) Dip Length (metres)
RLE030 393950 6049135 295 30 -55 725.00
RLE031 395191 6050361 292 360 -60 604.00
RLE032 395191 6050361 292 360 -52 81.00
RLE033 395191 6050361 292 360 -52 143.00
RLE034 395191 6050361 292 360 -52 630.00
RLD040 393600 6048550 290 335 -62 526.00
RLD041 393035 6048643 292 35 -68 1090.00
(1) Universal Transverse Mercator / North American Datum 1983 / Zone 14
(2) "Azimuth" is degrees from True North
REED COPPER PROJECT JOINT VENTURE UPDATE
On April 2, 2012, VMS and Hudbay announced a positive prefeasibility study on the Reed Copper project. For details see press release dated April 2, 2012 available at: http://www.vmsventures.com
. Highlights include production commencing Q3 2013, average expected reserve grade of 3.83% copper with a 94% recovery rate.
On December 19, 2011 VMS and Hudbay announced a preliminary economic assessment and technical report on the Reed Copper deposit.
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 and two claims immediately south of the deposit. The parties have also entered into four option agreements which grant HudBay the right to earn a 70% interest in properties held by VMS and adjacent to the Reed Copper deposit property.
For additional details on the Reed Copper 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
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 were 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.
Assay integrity is monitored internally with a quality control program, which includes the use of standard reference materials, 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 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.
VMS Ventures owns approximately 45% of North American Nickel Inc. (TSX VENTURE:NAN). For more information on North American Nickel Inc., please visit www.northamericannickel.com
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.