VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 1, 2016) - VMS Ventures Inc. (TSX VENTURE:VMS) ("VMS Ventures" or the "Company") is pleased to provide an update on the Company's 30% owned Reed mine mineral reserve and resource estimates. Hudbay Minerals Inc. (HBM.TO)(HBM) ("Hudbay") owns the remaining 70% and is the Operator. The Reed mine is located near Flin Flon, Manitoba and commenced commercial production on April 1, 2014. The ore from the Reed mine is currently being transported for processing at Flin Flon concentrator owned and operated by Hudbay.
Hudbay estimates of mineral reserves and resources for Reed are set out below.
| Reed - Mineral Reserves - January 1, 2016 (1)(2) | |||||
| Tonnes | Cu (%) | Zn (%) | Au (g/t) | Ag (g/t) | |
| Reed Mine | |||||
| Proven | 677,000 | 3.80 | 0.46 | 0.35 | 4.87 |
| Probable | 517,000 | 4.46 | 0.28 | 0.52 | 6.11 |
| Total Mineral Reserve | 1,194,000 | 4.09 | 0.38 | 0.42 | 5.41 |
| Notes: |
| (1) In preparing the estimated mineral reserves at Reed Mine Hudbay used a four year average price deck and foreign exchange rate. The zinc price was $1.16 per pound (includes premium), the copper price was $2.75 per pound, the gold price was $1,190 per ounce and the silver price was $16.50 per ounce using an exchange of 1.25 C$/US$. |
| (2) For additional details relating to the estimates of mineral reserves and resources at the Reed mine, including data verification and quality assurance/quality control processes refer to the pre-feasibility study filed on SEDAR on May 14, 2012 by VMS Ventures Inc. titled "Pre-Feasibility Study Technical Report on the Reed Copper Deposit, Central Manitoba, Canada" prepared by Trevor Allen, P. Geo., Cassandra Spence, P. Eng., Mark Hatton, P. Eng. and Brent Christensen, P. Eng. and dated effective April 2, 2012. |
| Reed - Inferred Mineral Resources - September 30, 2015(1) | ||||
| Tonnes | Cu | Zn | Au | Ag |
| 203,000 | 4.63 | 0.39 | 0.81 | 7.71 |
| Notes: |
| (1) Mineral resources that are not mineral reserves have not demonstrated economic viability. The above mineral resources are exclusive of reserves and were estimated using the same metals prices that were used for the estimate of mineral reserves at Reed. |
| Reed Mine | ||
| Mineral Reserve Reconciliation (Proven & Probable) | tonnes1 | |
| A | 2015 Mineral Reserve | 1,564,000 |
| B | 2015 Production (from Reserves) | 432,000 |
| C | (A - B) | 1,132,000 |
| D | Geology2 Gain/(Loss) | 74,000 |
| E | Mine Planning3 Gain/(Loss) | (15,000) |
| F | Economics4 Gain/(Loss) | 4,000 |
| G | (D + E + F) | 63,000 |
| H | 2016 Mineral Reserve (C + G) | 1,194,000 |
| 1Totals may not add up correctly due to rounding |
| 2Geology - diamond drilling, interpretation, estimation (interpolation parameters) |
| 3Mine Planning - resultant change of mine plan design, dilution and recovery |
| 4Economics - mine operating and capital, commodity price and CDN$/US$exchange, concentrating, TC/RC, freight |
| Reed Mine | ||
| Mineral Resource Reconciliation (Inferred) | tonnes | |
| I | 2015 Mineral Resource | 205,000 |
| J | 2016 Mineral Resource | 203,000 |
| K | (J - I) | (2,000) |
2015 Reed JV Drill Results
In December 2015 VMS Ventures completed seven holes for a total of 4,870 metres. The areas targeted are located approximately 300 metres to 2.3 kilometres from the Reed mine.