VMS Ventures Inc.: Reed Copper Project Mine Construction Decision Made
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/19/11 -- VMS Ventures Inc. (TSX VENTURE: VMS) ("VMS" or the "Company") is pleased to announce that HudBay Minerals Inc. (TSX: HBM)(NYSE: HBM) ("HudBay") has informed the Company that the HudBay Board of Directors has approved the necessary capital expenditures required to begin construction of the Reed Copper project. VMS owns 30% of the Reed Copper project joint venture, which is operated by HudBay and is located 120 km from Flin Flon, Manitoba. According to HudBay, first production is expected by late 2013. HudBay's decision to approve a $71 million capital investment and proceed with construction of the Reed Copper project was based on the positive economics outlined in a NI 43-101 compliant Preliminary Economic Assessment ("PEA") authored by HudBay. A summary of the project's economics follows (100% basis):
The high-grade nature of the Reed Copper deposit gives the project substantial leverage to copper prices. The following table outlines a copper price sensitivity analysis based on the operating parameters set out in the PEA.
VMS Ventures CEO, Rick Mark, remarked: "We are very pleased that HudBay has elected to move forward with construction of the Reed Copper project mine, while only having completed a preliminary economic analysis on the project. This demonstrates the robust nature of the Reed deposit. Production in late 2013 is good news for VMS shareholders. With the highly prospective targets generated by the JV's exploration work recently, we are optimistic that the deposit will grow over time. The potential for additional deposits within the JV ground remains strong as is discussed in our concurrent release concerning upcoming drill targets for this winter. For those bullish on the copper price in 2014 and beyond, the cash flow projections are most encouraging."
The preliminary economic assessment prepared by HudBay in respect of the Reed deposit is preliminary in nature, includes inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty the preliminary economic assessment will be realized. The VMS PEA Technical Report on the Reed Copper Project dated December 16, 2011 will be filed shortly for public disclosure ().
Reed Copper Project Assumptions and Qualifications
Qualified Person
Neil W. Richardson, P.Geo, Chief Operating Officer of VMS Ventures Inc., a Qualified Person in accordance of Canadian Regulatory requirements as set out in NI 43-101, is responsible for the information in this release.
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 Lake Project, 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.
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
Rick Mark, CEO
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.
Contacts:
VMS Ventures Inc.
John Roozendaal
President
(604) 986-2020 or Toll Free: 1-866-816-0118
Launch IR
Matt Harrington or Dean Hanisch
(613) 882-7467
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Datum: 19.12.2011 - 11:30 Uhr
Sprache: Deutsch
News-ID 98153
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VANCOUVER, BRITISH COLUMBIA
Kategorie:
Mining & Metals
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