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 - McClarty North Project

Location and Property Description
The McClarty North Project is situated approximately 45 km west-southwest of the Town of Snow Lake where active mining and milling of base and precious metals has been ongoing for decades. The property comprises 3 claims with a total area of 640 hectares. The property is located on the south side of Provincial Road 39 and occurs beneath a veneer of dolomite. The McClarty North Project covers the northern extension of the McClarty Lake geology and as such is interpreted to be highly prospective.

History of Exploration
Airborne and ground magnetic and electromagnetic surveys have been undertaken in the general area of the project by Granges, Hudson Bay Exploration and Development and Manitoba Mineral Resources since 1972. These surveys were necessary owing to the extensive cover of dolomite that blankets the prospective Flin Flon-Snow Lake greenstone belt in this area. Diamond drill testing of some of the conductors intersected abundant iron sulphide (pyrite and pyrrhotite) with graphite. Sulphide intersections in drill core are described as “massive” denoting near solid sulphide was present.

Philosophy of VMS Ventures Exploration
The McClarty North property was acquired because there are a number of regional geophysical electromagnetic conductors that define a linear zone in a favourable geological setting that includes felsic and mafic volcanic rocks. Previous drilling has intersected massive sulphide mineralization that may be part of a VMS system. Systematic follow-up of assessment work and drill cores on this property has been initiated.

The McClarty North property covers the northern extension of the McClarty Lake stratigraphy. Several historic drill holes from previous exploration programs tested regional conductors and intersected abundant sulphide mineralization, however, many of them were associated with graphite. In addition to the VMS potential, there is a large body of magnetic rocks on the nearby McClarty Project signaling potential for nickel mineralization. The recognition of chemical sedimentary rocks or “exhalites” deposited at a stratigraphic interval corresponding with a break in volcanism represents an important time-stratigraphic feature.

It is at this location that base metal massive sulphide deposits are formed. This includes deposits in the Flin Flon-Snow Lake greenstone belt and in greenstone belts worldwide. The McClarty North claim group being explored by the Company is sub-Paleozoic meaning that the rocks that will host copper, zinc, nickel and platinum group metals are not exposed at surface which has frustrated traditional methods of exploration. For this reason deep-looking soil geochemical surveys will be applied to the property to prioritize drill targets. VMS Ventures has undertaken an integrated geological-geophysical-geochemical exploration program to assess the McClarty North area for base metal and associated precious metal mineralization.

Geology
The property is characterized by a layer of dolomite that overlies the highly prospective Flin Flon-Snow Lake greenstone belt and its contained base metal massive sulphide type mineralization. The underlying greenstone belt comprises mafic and felsic volcanic and volcaniclastic rocks that are intruded by a variety of lithologies including ultramafic rocks, gabbro, diorite and quartz diorite and felsic to intermediate monzonite and tonalite.

Geophysics
VMS Ventures Inc. conducted an airborne geophysical survey over the property in early 2008 using GEOTECH’s VTEM system. A number of well-defined conductors were identified. These anomalous responses indicate the presence of bedrock-hosted conductive minerals such as copper- and zinc-bearing sulphide with associated gold and silver and the iron sulphide minerals pyrite and pyrrhotite. Together these minerals provide targets for follow-up exploration. Follow-up geochemical surveys and drilling are planned for the more promising electromagnetic anomalies.

Geochemistry
Partial and selective extraction soil geochemical surveys are planned for the property. The detection of multi-element base and precious metal anomalies coincident with VTEM geophysical responses will be the focus of diamond drilling on the property.

Deposit Types
Base metal massive sulphide mineralization hosted within a sequence of volcanic rocks and exhalite are strongly indicative of volcanogenic massive sulphide type base metal mineralization (“VMS”). This deposit type is representative of Flin Flon belt VMS deposits including the Discovery Zone at Reed Lake.

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