January 09, 2013 08:45 pm
Vancouver, B.C., January 9, 2013. VMS Ventures Inc. (TSX-V:VMS) (“VMS Ventures” or the “Company”) is pleased to report on developments at the Reed copper project near Snow Lake, Manitoba. Reed is a high grade copper deposit scheduled to begin production in the fourth quarter of 2013. VMS Ventures owns 30% and is carried to production. HudBay Minerals (TSX: HBM, NYSE: HBM) (“Hudbay”) owns 70% and is the Operator.
VMS Ventures COO Neil Richardson, states: "Important progress was made over the last quarter of 2012 with the completion of necessary infrastructure for underground development. We are particularly pleased that the Reed project has completed much of the difficult near surface phase of underground work, including the completion of approximately 72 metres of lateral development in 2012.”
The Reed project is within the planned budget and schedule towards production in the fourth quarter of 2013. As of the end of 2012, the team worked 294 days without a lost time accident, including the critical activity on the project to ensure the decline is well supported near its entrance by installing bolts, screen, arches, spilings and shotcrete.
Hudbay and VMS Ventures have invested $19.7 million on the project to November 30, 2012 and have entered into an additional $17.8 million in commitments for the project. Capital expenditures at Reed are expected to total approximately $44 million in 2013.
The Environmental Act license application for Reed has been submitted to the provincial government. Mining at the Reed Copper Project is expected to begin by the fourth quarter of 2013, and is anticipated to ramp up to full production of approximately 1,300 tonnes per day by the first quarter of 2014.
2012 Q4 Project Highlights:
The ramp had advanced 72 metres and the shop and warehouse was 75% complete with the steel siding in progress. The mine rescue trailer was set-up and training is continuing. The winterization is on-going and site preparation is now complete for the development of the escape and ventilation raises. The ramp is expected to progress at a rate of 4 metres of advance per day for the remainder of the project.
We invite you to view the latest pictures of the development at the Reed Copper Deposit on our website at: http://vmsventures.com/Projects/Manitoba-Properties/VMSHudBayJointVentures/VMS-Ventures---HudBay-Joint-Venture-Project/default.aspx.
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, which is subject to a 70-30 JV with HudBay Minerals and is scheduled for production in Q3- 2013, 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 21M shares of North American Nickel Inc. (TSX VENTURE:NAN). For more information on North American Nickel Inc., please visit www.northamericannickel.com.