The Company's key asset in Manitoba is the Reed Mine (2.33 Mt grading 4.16% Cu, 4.31% Zn, 0.38 g/t Au and 4.57 g/t Ag) discovered in October of 2007. The deposit sits adjacent to Provincial Highway 39 and is midpoint between the historic mining towns of Flin Flon and Snow Lake. VMS Ventures’ Joint Venture partner HudBay Minerals (HBM:TSX) is currently operating the mine. The project has a projected mine life of 6 years with a 1300 tpd rate of production. The JV agreement will allow Hudbay to earn 70% in the project while VMS retains a 30% carried interest and is funded to production.
VMS also has signed a joint venture agreement with Hudbay on four separate but contiguous claim blocks that surround the Reed Copper Project.
At present, VMS’ Geological team is focusing on the search for new discoveries on its 100% owned property in the Flin Flon – Snow Lake greenstone belt. This belt is the most prolific Proterozoic VMS belt in the world with 29 producing and past producing Cu-Zn-Au-Ag deposits. Two joint venture projects in the area include Puella Bay and Sails Lake.
Elsewhere in Manitoba VMS has 100% ownership of the Assean Gold property, 125 km northeast of Thompson, Manitoba which covers a 20 km shear zone containing 6 gold occurrences.