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Reed Mine

Overview

On October 4, 2007 VMS Ventures announced the discovery of a near surface zone of high-grade copper mineralization on their Reed Lake property in the Flin Flon-Snow Lake greenstone belt in central Manitoba. The property is located 50 km west-southwest of Snow Lake and 80 km east of Flin Flon.

History

  • 2007 - Deposit discovered by VMS Ventures Inc.
  • 2010 - Hudbay and VMS sign Joint Venture Agreement on July 5, 2010 giving Hudbay a 70% interest and VMS a 30% interest.
  • 2010 - Hudbay drills 35 optimum core angle holes in winter of 2010-2011.
  • 2011 - Hudbay proceeds to full construction with first production expected by late 2013. Annual copper production in concentrate from the Reed Mine expected to average 17,000 tonnes over the five year mine life.
  • 2013 - First production at Reed begins
  • 2014 - Achieved commercial production ahead of guidance and completed construction under budget with grand opening September 16, 2014 with production at 1,300 tonnes per day and an estimated five year mine life.
  • 2015 - As of March 2015, ore production was at 40,100 tonnes.

Reed Probable Mineral Reserves as at April 2012:

Mineral Zone

 Tonnes

Cu (%)

Zn (%)

Au (g/t)

Ag (g/t)

        30    270,910  2.16 2.42  1.424  15.95 
        20  1,022,136 3.98 0.48 0.349 4.87
        10    864,330 4.17 0.15 0.332 4.28
      Total 2,157,375 3.83 0.59 0.477 6.02
 See Pre-feasibility Study dated April 2012

 

Reed Mineral Reserves as at January 1, 2015:

Category

Tonnes

Cu (%)

Zn (%)

Au (g/t)

Ag (g/t)

Reed Mine 

Proven  488,000 3.33  0.67  0.38 5.82

Probable 

 1,076,000

4.01

 0.29

 0.37

4.50

Total Mineral Reserve  1,564,000              3.80                 0.41                0.38                4.91

Stated at 100%, Hudbay holds a 70% joint venture interest in the Reed Copper Project. Note: totals may not add up correctly due to rounding.

NOTE:

See news release of April 1, 2015 for complete update on Reserves and Resources at Reed Mine.

Geology and Mineralization

The Reed Mine Deposit is a stratabound massive sulphide type deposit that occurs within Precambrian volcanic rocks. It is overlain by 3 to 7 m of unconsolidated organic and glacial overburden, 15 to 20 m of Ordovician dolomitic limestone, 1 to 2 m of semi-consolidated to consolidated Ordovician quartz-rich sandstone, and 5 to 25 m of deeply weathered Precambrian rocks. The Precambrian rocks beneath the Ordovician cover consist of Flin Flon Domain volcanic rocks of the Four Mile Island Assemblage.

Reed Mine is interpreted as three stacked tabular bodies with varying orientations. The upper zone, Zone 30, trends 305° and dips 77° to the northeast, Zone 20 trends 300° and dips 71° to the northeast, and Zone 10 trends 275° and dips 80° to the south. The sulphide intersections range from 2.00 m up to 72.51 m in core length. Diamond drilling has intersected mineralization along a strike length of 430 m and to depths of 550 m below surface. See Figure 1 below:


Figure 1: Wireframe model of the three mineralized zones at the Reed Mine

Mineralization begins at approximately 25 m below surface and extends to approximately 580 m below surface. Mineralization is generally fine to medium-grained disseminated to solid sulphides consisting of pyrrhotite, pyrite, chalcopyrite, sphalerite, and magnetite. The principle gangue minerals are chlorite, and quartz.

Mineralization in Zone 30 is generally characterized by solid sulphide with elevated gold and silver, and moderate copper and zinc grades. Zone 20 is also characterized by solid sulphide with the mineralization consisting of high grade copper, minor zinc, and low grade gold and silver. Stringers and disseminated sulphide tends to characterize Zone 10, which consist of high grade copper and lower grade gold, silver, and zinc.

Results

The discovery of the Reed Mine has been based on the exploration of a conceptual idea that highly productive volcanic rocks of the Flin Flon-Snow Lake greenstone belt are present beneath younger dolomite and sandstone cover rocks. The concept was proven correct with the discovery at Reed.

The use of airborne electromagnetic and magnetic geophysical surveys coupled with Mobile Metal Ions soil geochemistry has proven to be a rapid and cost effective method of assessing VMS properties in the belt. These surveys led to the discovery of the Reed Mine.

Activity/Work Plans

In September 2014, the Reed Mine was officially opened with a production of 1,300 tonnes per day. Official production commenced April, 2014, and achieved full production in the second quarter of 2014. In 2014 the mine produced 415,736 tonnes at a grade of 2.50% Cu, 1.58% Zn, 0.74 g/t Au and 9.04 g/t Ag.

During the months April to June 2015 the Reed Mine produced 112,505 tonnes, primarily from Zone 20. The decline is close to the 285 m level and ore development continues on the 260 and 265 m levels. Three slot raises have been completed for stope production and the vent raise from 235 to 160 m has been completed.

In November, 2015 VMS Ventures announced it has completed a seven drill hole exploration program on target areas proximal to the Reed Mine and on the Reed Exploration JV properties. A total of 4,870 m of drilling has been completed. Follow-up borehole electromagnetics were conducted on each drill hole. Assays are pending.

Further details on this drilling program can be found on the Reed Exploration JY property write-up on this website or the December 3rd, 2015, news release.

VMS Ventures 
500 - 200 W. Esplanade
North Vancouver, BC V7M 1A4
Tel: 604-986-2020
Fax: 604-986-2021
Toll Free: 1-866-816-0118
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