May 5 2014
VMS Ventures Inc. ("VMS Ventures" or the "Company") is pleased to update shareholders on the progress made at the Reed mine, near Flin Flon Manitoba. VMS Ventures owns 30% of the mine and is carried to production. Hudbay Minerals Inc. ("Hudbay") owns 70% and is the Operator.
The Reed copper project advanced to mine status after achieving commercial production on March 31, 2014.
- Averaging 60% of full production tonnage (1,300 tonnes per day) over the last 90 days, having operated at 792 tonnes per day in the first quarter of 2014.
- During the first quarter Reed mined 71,236 tonnes of ore at a copper grade of 1.92% and a zinc grade of 2.14% from a combination of ore development and longhole stope mining.
- The project has invested $66 million to the end of Q1, 2014 and approximately $4 million of project capital will be spent as sustaining capital over the life of mine.
- The project was completed under budget and ahead of guidance with no lost time accidents.
- Sale of copper and zinc concentrates will start to pay back the Company's project loan and advance VMS towards cash flow.
- During the month of March development advanced 288 metres or 9.3 metres per day, for a total of 3,215 metres project to date.
- 27,407 tonnes of ore were mined in March.
Neil Richardson, VMS Ventures' COO states: "We are very pleased to see the Reed copper project advance to mine status and achieve commercial production. The mine continues to advance towards full production and has operated without any lost time accidents. Thanks to all the employees and contractors for a job well done."
The focus for May will remain on safety and continued ramp development while establishing lateral infrastructure headings and ore development on 160 metre level.
Please visit the VMS website at http://www.vmsventures.com/investors/photo-gallery to view a slide show of the latest progress on the Reed Mine. 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 mine, which is subject to a 70-30 JV with Hudbay Minerals and reached 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 the Black Creek property in the Sudbury mining camp.
VMS Ventures owns approximately 23.9% 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, B.Sc., President
VMS Ventures Inc.
Source: http://www.vmsventures.com/