Dear VMS Followers, 

This morning VMS Ventures announced that our JV partner, HudBay Minerals, has approved the necessary capital expenditures to begin construction of what will be the Reed Copper Mine, near Snow Lake, Manitoba. 

We also announced, in a concurrent release, that there are new targets at the Reed deposit, close by the deposit within the JV ground, and also near the high grade zones at Reed North. The Reed deposit appears open at depth, down plunge, which suggests additional tonnage is possible. The new targets will be drilled early in the New Year.

For some months now, HudBay has suggested that the Reed Copper Project Mine is a high priority for them and today’s news confirms that. We expect production in late 2013.

VMS President, John Roozendaal describes the Preliminary Economic Assessment as follows:

“The NI 43-101 preliminary Economic Assessment (PEA) on the Reed Copper project demonstrates the value of polymetallic deposits in the Snow Lake Greenstone Belt..  The Reed Copper deposit is a steeply dipping, multi lens deposit which allows for underground bulk tonnage mining methods and multi heading production.   This permits for approximately 1,300 tonnes per day (TPD) and a payback within year 3, using the base case scenario which relies on commodity prices significantly below current spot prices.   HudBay and VMS will continue to explore around the deposit and on the JV and option properties testing new geophysical anomalies”.

VMS COO, Neil Richardson, in a 20 second video clip here, describes the new down plunge anomaly on the copper rich, zone 10 at Reed.

Kudos are due to Neil and the JV team for their successful efforts reviewing tonnage opportunities at Reed, and delineating refined targets at Reed North.

Both VMS press releases are below and are also available on the website. www.vmsventures.com

The Preliminary Economic Assessment document will be posted on SEDAR later this week..

We look forward to your feedback and expect a very busy 2012, starting with drilling at Reed and Reed North in the New Year.

Best regards,

Rick Mark
CEO
VMS Ventures Inc.

VMS Ventures owns approximately 45% of North American Nickel Inc.

 REED COPPER PROJECT MINE CONSTRUCTION DECISION MADE

Vancouver, B.C., December 19, 2011 - VMS Ventures Inc. (VMS: TSX-V) (“VMS” or the “Company”) is pleased to announce that HudBay Minerals Inc. (HBM: TSX/NYSE) (“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):

�         Approximate daily ore production of 1,300 tonnes at Reed is expected by late 2013, subject to receipt of required permits.

�         Average expected production grades of 3.78% copper, 0.45 g/t gold and 5.77 g/t silver.

�         Assumed metal recoveries in HudBay’s Flin Flon Concentrator of 94% copper, 58% gold and 62% silver.

�         Average production in concentrate of approximately 17,000 tonnes per year of copper metal.

�         Total operating costs estimated to average approximately $91 per tonne milled ($67 per tonne mining, $16 per tonne milling and $8 per tonne administration) over a five year mine life.

�         Sustaining capital expenditures are expected to total approximately $55 million over the five year mine life.

�         PEA base-case pre-tax NPV (8%) of $64.9 million assuming average weighted metal prices of US$2.78 lb Cu, US$1,059 oz Au, US$24.14 oz Ag and USD/CDN$ exchange rate of $0.92 over the five year mine life.  All dollar values are Canadian (CDN$) unless specified.

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. CLICK HERE TO READ MORE

NEW GEOPHYSICAL TARGETS AT, AND NEAR, THE REED COPPER DEPOSIT SNOW LAKE, MANITOBA

 Vancouver, B..C., December 19, 2011 - VMS Ventures Inc. (VMS: TSX-V) (“VMS”) and HudBay Minerals Inc. (TSX, NYSE:HBM) (“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. CLICK HERE TO READ MORE

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