|
|
If news releases are the very lifeblood
of junior resource companies then VMS Ventures is definitely a company to
have on your radar screen.
In the fall of 2007 the management team of VMS Ventures TSX.V – VMS
announced the assays from their Reed Lake Discovery hole. This hole
intersected 43.05 meters of volcanogenic massive sulphide (VMS)
mineralization grading 4.38% copper, 1.56% zinc, 0.85 grams per tonne (gpt)
gold and 13.09 gpt silver. This remarkable intersection
included 10 meters of 11.19% copper, using today’s copper spot
price, just the copper in that 11.19 meters would be worth $1060.80 a tonne.
Seventy three holes were drilled up to September, 2008. Hole #RD-08-41
included 33.46 meters of 10.36% Copper ($982.12 per tonne), which included
18.08 meters of 13.80% copper ($1308.22).
Those news releases - containing long intercepts of rich VMS copper
mineralization - led to a July 2010 news release in which VMS Ventures
announced a joint venture (JV) agreement with HudBay Minerals TSX – HBM
to develop the Reed Lake and four adjacent properties.
HudBay is the operator of the Reed Lake joint venture (JV) and the four
option properties. An initial resource estimate on the Reed Lake project is
expected by the end of March 2011.
The latest news release regarding the Reed Lake project was - VMS Reports 37.10 Metres of 5.60%
Copper From In-Fill Hole RLD024 at Reed Lake Joint Venture 02/23/2011
Infill drilling is continuing using two drills on the Reed Lake deposit with
cut-off for the initial resource estimate being the third week of February.
"We are pleased with the
latest results for the upper lenses (Zones 20 and 30) that confirm the extent
of mineralization and provide us with definition required to complete a
resource estimate. Geological models are being updated in preparation for a
NI 43-101 technical report slated for completion in the latter part of Q1
2011." Neil Richardson, VMS Chief Operating Officer
As part of the VMS/HBM JV earn in agreement HudBay must spend at least a
million dollars, before the end of July 2011, on the surrounding four option
claims – which means more news.
HudBay is fast tracking Reed Lake and will be applying for an advanced
exploration permit in the coming months. This permit allows for a bulk sample
with the intention to be production mining in 2012.
Ahead of the Herd Special
Report
Security of Supply
VMS
has a 30% carried interest in the Reed Lake JV - which to a shareholder means
VMS is funded through to production with payback to HudBay made from
VMS’s share of production.
2011 Work Program
VMS is cashed up with $16,000,000 in the treasury, and other than monitoring
the Reed Lake JV, is focused on exploring its 100% owned properties.
Exploration and drill permits have now been received for several of the
Company's project areas including Morton Lake, Copper-South, Copper
Extension, Puella East and Sails Lake. Permits for additional projects are
anticipated in the coming weeks. A drilling contract has been awarded to
Westcore Drilling of Salmo, B.C., and road building and line cutting
contracts have also been signed.
This winter's drill program will test numerous potential base metal VTEM and
Time Domain Electromagnetic anomalies throughout the Company's property
package and is expected to continue into April, or when freeze up ends. All
of these property packages are owned and operated 100% by VMS Ventures and
are completely separate from the Company's Reed Lake project Joint Ventures
with HudBay Minerals.
Morton Lake
The Morton Lake project is located 25 km west of Snow Lake. The project
boundary is within 500 m of the past producing Dickstone copper-zinc mine.
Because of the geological similarity to the rocks hosting the Dickstone
deposit, targets in the northwest portion of this property are a priority for
drilling this season.
The geological rock unit that hosts the Dickstone mineralization has been
mapped on the VMS Morton Lake property and a 1.5 - 2 km segment will be
surveyed using DeepEM ground geophysics. Both the line-cutting and
geophysical surveying contracts have been awarded and work is on-going.
The DeepEM system being employed is capable of detecting massive sulphide
bodies to depths well below the depth of an airborne survey, up to 800 m
below surface. HudBay Minerals used it to help discover its Lalor Lake
deposit in 2007, approximately 20 km to the west of the VMS Morton Lake
property.
Targets generated from the DeepEM survey, along with airborne geophysical
anomalies already identified elsewhere on the property, will be drilled this
winter.
Sails Lake Update
On January 11th 2011, the Company announced a gold discovery at its Sails
Lake project featuring an intercept of 56.89 m (186.65 feet) grading 1.21
grams/tonne gold starting within 40 meters of surface.
A follow-up program of new line-cutting, Induced Polarization (IP)
geophysical surveys, and Mobile Metal Ion geochemical soil sampling will
commence in February, with outcrop washing, detailed geological mapping and
prospecting for additional outcropping mineralization to follow in the
spring. Drill core samples of the gold mineralization from hole SA-10-007
have been taken for petrographic and lithogeochemical study to determine the
mineralogical siting to the gold. Understanding the host lithology will
assist Company geologists in planning the next drill program.
Copper Project (Includes
Copper North, Copper South and Copper Extension Properties)
The Copper project covers 185 sq. km of prospective geology in the Flin Flon
Snow Lake greenstone belt of Manitoba. The property is located approximately
45 km south of the mining community of Snow Lake, Manitoba where HudBay
Minerals operates the Chisel North zinc-copper-gold-silver mine.
Work permits for the Copper Project have now been received and drill road
construction is underway. Several hundred discrete geophysical anomalies were
detected in VTEM airborne geophysical surveys commissioned by the Company.
Four priority drill targets have been selected for this program based on the
Company's extensive geological-geophysical-geochemical database for the
property. The four targeted VTEM anomalies have been Maxwell modeled by
Condor Consulting of Boulder, Colorado.
Several volcanogenic massive sulphide-type deposits have been discovered on
or adjacent to the Company's property package and the same host rocks to the
deposits are covered by Company claims or Mineral Exploration Licenses.
The Copper Project area is covered by a relatively thin layer (25 - 40 m) of
younger Paleozoic rock. VMS believes many deposits remain to be discovered in
the greenstone belt that underlies the Paleozoic cover that has impeded
historic exploration efforts. Advances in exploration technology including
increased depth penetration of geophysical and geochemical survey techniques
combined with compilation of historical data sets provide exploration
geologists a new opportunity to discover new mines in this area of an
under-explored world class belt. The copper-zinc-gold-silver deposit
discovered at Reed Lake by VMS Ventures in 2007, demonstrates the
prospectivity of the "covered" areas of the Flin Flon-Snow Lake
belt.
Upon completion of winter drill roads, diamond drilling equipment will be mobilized
onto collar locations and testing of targets will commence.
McClarty Lake (Includes
McClarty South, McClarty North & Farwell Properties)
The Company's McClarty Lake project covers an area in excess of 300 sq. km of
geology prospective for hosting Volcanogenic Massive Sulphide
copper-zinc-gold-silver deposits like that discovered on the Company's Reed
Lake property in 2007. The property is located 45 km to the southwest of Snow
Lake, Manitoba.
The McClarty Lake land package surrounds a base and precious metal discovery
made in the mid 1990's which is now being explored by Troymet Exploration
Corp., and HudBay Minerals. Drill intercepts from the property reported by
Troymet Exploration Corp., include 4 meters grading 4.17 g/t gold in drill
hole DYC-016 and 15.30 meters grading 3.46% zinc in drill hole MC08-08.
Significant drilling activity on the 5 claims in the area being explored by
Troymet and HudBay Minerals, which cover an area of approximately 6 sq. km,
is expected at these properties during the upcoming drill season. VMS will
assess the results of this program, and develop targets on its adjacent
claims that occur along strike of the Troymet-HudBay mineralized horizon.
Drilling permits for the Company's properties are pending.
Other Properties:
Exploration and drill permits are pending for the Leak Lake, 9-7, and Reed
properties. Drill collar locations will be based on Maxwell modeled VTEM
anomalies with significant Mobile Metal Ion geochemical signatures.
Additional information regarding drill targets on these properties will be
released upon receipt of work permits.
Conclusion
VMS Ventures has ambitious exploration plans on their extremely prospective
100% owned property package for 2011 - shareholders are going to get the
opportunity to participate in what has to be one of the largest exploration
programs, in Canada, for 2011.
Remember, it’s all being managed by the same team that drilled the original Reed Lake Discovery Hole.
Highly advanced greenfields exploration using all the latest technical
innovations in what is a highly prospective for discovery land package. VMS
has a management team committed to building shareholder value by modern
exploration methods and the use of the drill bit. All back-stopped by a
carried 30% interest in Reed Lake, a deposit that their JV partner needs in
production sooner rather than later.
VMS Ventures is well positioned to become a major player in one of the
world’s greatest mining camps. Are VMS’s 2011 exploration and
drill programs on your radar screen?
If not, maybe they should be.
Richard Mills
Aheadoftheherd.com
|
|