VMS Ventures Inc. and HudBay Minerals Inc. (“HudBay”) are pleased to announce that a comprehensive review of borehole and surface pulse electromagnetic data has identified strong, high priority anomalies surrounding the Reed Copper Deposit. The Reed Copper Deposit is located 120 kilometres from Flin Flon, Manitoba and is the subject of a Joint Venture with HudBay Minerals. VMS owns 30% of the Reed Joint Venture. The Joint Venture property is surrounded by four option agreements between VMS and HudBay where HudBay may earn a 70% interest in the properties.
A comprehensive review of geophysical data from all borehole surveys and one surface time-domain survey was initiated in early October 2011. The surface grid is located on the Reed North discovery which is located 1.8 kilometres northeast of the Reed Copper Deposit. The data was supplied by HudBay Minerals and was reviewed by Koop Geotechnical and Kevin Ralph of Crone Geophysics. A total of 63 holes were reviewed and targets ranked from Category “A” (highest conductance) to Category “C” (lowest conductance).
VMS Ventures COO, Neil Richardson, states: “We are very pleased with the delineation of several new borehole geophysical targets. On the Joint Venture ground the surveys indicate that the Reed Copper Deposit is open down plunge and that there are potential new zones located just north of the deposit. We believe these new targets have the potential to augment the current mineral resource at the Reed Copper Deposit. There are also two new targets near the Reed North discovery located on the Super Zone Option property.”
Targets near the Reed Copper Deposit include the potential down plunge extension of zone 10, which is the richest copper lens in the deposit. This interpretation is based on results from holes RLD031, RLD031W1, RLD034 and RLD018 where the step response indicates the zone is open at depth. Also two potential targets are located just north of the deposit and are spatially associated with holes RD-08-45, RLD037 and RD-08-42DNP. It’s recommended that holes RD-08-42DNP and RLD037 be surveyed with two different loop configurations to accurately determine the location of this anomaly. A time-domain electromagnetic target exists between the historical Highway Zone and the Reed Copper Deposit. This untested anomaly was defined by a surface survey carried out in 2008 and is located in an area of favorable geology.
These targets have been reviewed by the Joint Venture management committee and are scheduled for drilling beginning in January 2012.