VMS Ventures Updates Progress at the Reed Copper Project, Manitoba: $30 Million Invested in the Project
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 11, 2013) - VMS Ventures Inc. (TSX VENTURE:VMS) ("VMS Ventures" or the "Company") is pleased to update shareholders on underground mine development 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 Inc. (HBM.TO)(HBM) ("Hudbay") owns 70% and is the Operator.
VMS Ventures COO Neil Richardson states: "We are particularly pleased that Hudbay's mine development team is succeeding in the development of good ground control systems for the early phase of development. The rate of advancement of underground development in February was slowed due to the installation of extensive ground support. Ground conditions in the upper portions of the mine at Reed have been difficult, but are expected to improve at depth. Despite these challenges, approximately 81 meters of lateral development was completed in February."
The Reed project is forecast to remain within budget and on time to production beginning in the fourth quarter of 2013. As of the end of February 2013, the joint venture has invested $30 million and committed an additional $18 million. The project development team has worked 351 days with no lost time accidents. 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 which, upon receipt, will allow for full production. 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.
2013 February Project Highlights:
The underground ramp was advanced 81 meters in February. Development was slower than expected for the month due to the necessary installation of cable bolts and shotcrete to deal with difficult ground conditions. A faster method of securing areas with poor ground conditions was identified and progress of the decline is returning to the expected rate of development. The Escape raise from surface to the 30 meter level was completed and the vent raise started. The Shop-Warehouse building was completed and construction of the ore pad has started.
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 joint venture with HudBay Minerals and is scheduled for initial production in Q4 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 two properties in the Sudbury mining camp. They are Terra Incognita 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.
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, B.Sc., President
VMS Ventures Inc.
