VMS EXPLORATION PROPERTIES
VMS-HUDBAY OPTION AND JV PROPERTIES
Option properties (Tower Zone, Super Zone, Northeast and Northwest)
The four option agreements are part of the land package negotiated with HudBay Minerals (TSX:HBM)(NYSE:HBM) ("HudBay") to explore the prospective ground near the Reed Lake deposit. HudBay may earn up to 70% of the option properties.
Airborne surveys (VTEM), data compilation and limited soil geochemistry (MMI) over specific targets have been completed on the option properties. Four drill holes have now been completed, testing VTEM and BHPEM anomalies. Hole RLE002 tested BHPEM target from hole RN-10-07, hole RLE003 tested a weak VTEM with magnetic coincidence located 1.1 km west of the Reed Lake deposit, and RLE004 targeted VTEM anomaly VT119 with magnetic coincidence located on the Super Zone option and deepened TZ-09-11 to test BHPEM targets. Assays are pending.
HudBay is continuing to drill VTEM anomalies on the option properties and is conducting additional Time-Domain Electromagnetic ground surveys (TDEM) for follow-up drilling programs.
Reed Lake – Joint Venture
On July 6, 2010, VMS announced a joint venture agreement with HudBay to develop the Reed Lake property and the two claims immediately to the south. VMS has a 30% carried interest and HudBay has a 70% interest and will act as the operator of the joint venture. The Reed Lake deposit is a base metal, polymetallic, massive sulphide-type deposit and is located approximately 100 kilometres from HudBay's concentrator in Flin Flon, Manitoba. On April 1, 2011, VMS announced a NI 43-101 geological resource of 2.6 million tonnes grading 4.52% copper and 170 thousand tonnes grading 4.26% copper in the indicated and inferred categories, respectively. Metallurgical samples have been sent to G and T Laboratories in Vancouver, with results expected later in the summer. Geotechnical drilling is on-going and being supervised by Golder Associates, with results expected in the coming months. Hole RLE001 was designed to test the magnetic anomaly just west of the deposit. However, while this hole intersected magnetite, no economic sulphides were present. Diamond drilling is currently on-going with hole RD-08-42 be deepened to approximately 1,200 metres. The drill is testing a broad approach borehole pulse electromagnetic anomaly. A prefeasibility study is proposed with an underground bulk sample for metallurgical work and ore resource reconciliation.
100% OWNED PROPERTIES
The Cowan River Project is located 45 kilometres southwest of the town of Snow Lake, and 8 kilometres east of our Reed Lake discovery. VMS Ventures announced a copper discovery on April 13, 2011, in hole RE-11-001, grading 9.81% copper over 1.37 metres. To date, a total of 834 metres in three holes have been completed on this new discovery and additional 666 metres in two holes have been completed on additional VTEM targets in the area. Additional drilling on this discovery and other un-tested VTEM anomalies will take place in summer 2011.
On January 11, 2011, the Company announced a gold discovery at its Sails Lake Project featuring an intercept of 56.89 metres (186.65 feet) grading 1.21 grams/tonne gold. The mineralized zone occurs within 40 metres of the surface. The Sails Lake Project is located 25 km east of the town of Snow Lake.
A follow-up program of line-cutting and Induced Polarization (IP) geophysical surveys is now complete with the final interpretations forthcoming. Diamond drilling is currently being carried out near the discovery and will be followed up with trenching and geological mapping later this summer.
A total of 2,560 metres were drilled in 7 holes on the Company's Copper Project located approximately 30 km south of the mining community of Snow Lake, Manitoba. On April 27, 2011, the Company announced a new zinc discovery in hole CP-11-006, grading 1.76% zinc over 2.04 metres and follow-up hole CP-11-012 intersected anomalous zinc, gold and silver. The company is now reviewing data and assessing additional VTEM targets in the vicinity of this discovery. Additional drilling is being planned for summer 2011.
The Morton Lake Project is located 25 km west of Snow Lake and within 500 metres of the past-producing Dickstone copper-zinc deposit. A deep-penetrating, ground based Time Domain Electromagnetic geophysical survey was completed by Koop Geotechnical Inc. during the first quarter of 2011. The 54 line kilometre survey assessed a long portion of favourable stratigraphy that hosted the nearby Dickstone copper-zinc deposit. Geotech Ltd. completed 340 line kilometres "Versatile Time Domain Electromagnetic" (VTEM – plus) airborne survey over our recently acquired southern claim blocks. A total of 957 metres in 3 holes have been completed to date, assay results pending.
The Farwell Project surrounds the McClarty Lake Project of Troymet Exploration Corporation who announced a discovery on May 15, 2008, returning 1.47% zinc and 0.31% copper over 43.05 metres, including 3.46% zinc over 15.3 metres. Geotech Ltd. completed 3,581 line kilometres of (VTEM – plus) over the project in preparation of follow-up geochemical survey "Mobile Metal Ion" (MMI) and diamond drilling. VMS will determine its next exploration program over the next few months.
Ruttan and Fox
The Ruttan and Fox Projects are located in the Lynn Lake – Leaf Rapids Greenstone Belt in northern Manitoba. This belt is part of the northern Trans-Hudson orogeny and hosts the past producing Ruttan mine (69.8 MT at 1.28% Cu and 1.40% Zn) and Fox mine (10.8 MT at 1.81% Cu and 1.77% Zn) historical geological resource, non NI 43-101 compliant. The company is currently compiling historical information and integration of a recent VTEM survey to augment our MMI soil survey which is scheduled for Q3. Exploration targeting will commence shortly.
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.