MANITOBA – The Manitoba government has approved the advanced exploration permit, closure plan and development plans for the Reed copper joint venture of Toronto-based HudBay Minerals (70%) and Vancouver-based VMS Ventures (30%). The exploration permit also allows the mining of a 10,000-tonne bulk sample.
HudBay agreed to fund mine development in December 2011. Site preparation will begin shortly, and the construction of a decline will is planned for the second half of this year.
The $71-million Reed project has a proposed daily ore production of 1,300 tonnes by late 2013. Recovered grades are estimated to be 3.8% Cu, 0.45% Au and 5.77 g/t Ag. The ore will be treated in HudBay’s Flin Flon concentrator. A five-year life is planned for the mine.
The Reed Lake technical report is available at VMSVentures.com.