VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 21, 2012) - VMS Ventures Inc. (TSX VENTURE:VMS) ("VMS" or the "Company") is pleased to announce the acquisition of a land package comprising two separate groups of claims from Mantis Mineral Corp. ("Mantis") (CNSX:MYN). The new claims cover a prospective sequence of rocks over an area of 38.70 square kilometres. The claim groups are situated immediately to the east and west of the VMS/HudBay JV/Optioned claims where mine construction on the high grade Reed Copper Deposit has begun. The claim blocks will be called Reed East &
Reed West and are owned 100% by the Company.
Neil Richardson, COO states: "We are very pleased to have acquired the Reed East and
Reed West ground. It covers the same volcanic rocks that host VMS' Reed discovery, our HudBay JV and Option properties and the Morton Lake, 9-7, and Cowan River projects. Exploration work undertaken to date, includes a VTEM airborne geophysical survey over the property that has produced several targets of interest. VMS will complete its review and follow up prospective anomalies with geophysical and geochemical surveying to assist us in confirming and prioritizing drill targets. We anticipate drill testing targets on this property in the upcoming winter drill season."
Reed East and
Reed West cover the same favorable Four Mile Island volcanic rock package that hosts the Reed Copper deposit and other deposits in this part of the Flin Flon - Snow Lake Camp such as the Dickstone and Spruce Point Mines. A Geotech VTEM survey undertaken by the vendor has established target areas, so VMS considers this to be a grassroots project in a brown-field environment.
Under the terms of the Purchase Agreement, VMS will acquire the claims outright, subject to an underlying royalty agreement, for a one time issuance of 500,000 common shares of the Company. These shares will be restricted for a period of four months from the date of issuance. The Purchase Agreement remains subject to the approval of the TSX Venture Exchange.
2011/2012 Winter Drill Results:
This past year's limited winter drill season was unsuccessful in the discovery of new base or precious metals mineralization. During the winter, VMS completed nine diamond drill holes, and one hole was abandoned due to ground conditions, for a total of 3,282 metres.
Four holes were completed and one hole abandoned at our Morton Lake project for 1,185 metres with all holes explaining EM anomalies with sulphides and graphitic schists.
Two holes were completed at the Puella Bay project for a total of 957 metres, with neither hole intersecting the EM plates. Borehole pulse electromagnetic surveys were completed and off-hole anomalies detected. These targets will be followed-up in a future drill program.
Three holes were completed at the Cowan River project, with one hole drilled at depth on the Cowan River zone, for a total of 1,140 metres. All holes intersected pyrrhotite mineralization explaining the EM anomalies with no appreciable base metals.
Target anomalies not able to be drill tested this past drill season will be tested this winter, along with new targets being developed, including Reed East and
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 Mine, which is subject to a 70-30 JV with HudBay Minerals and is scheduled for production in Q3-2013, 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.
All technical information in this release has been reviewed by Dr.
Mark Fedikow, P.Geo, who is the Qualified Person for the Company and Vice President of Exploration and Technical Services, VMS Ventures Inc.
Forward Looking Statement
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward-looking statements that involve various risks. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward-looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events may differ materially from those anticipated in such statements. VMS Ventures Inc. undertakes no obligation to update such forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on such forward-looking statements.
ON BEHALF OF THE BOARD OF DIRECTORS
John Roozendaal, B.Sc., President
VMS Ventures Inc.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.