COPPER STUDY: Reed PFS puts start-up in Q3 2013

MANITOBA – Start-up of the Reed copper underground mine could come as early as Q3 2013, according to the pre-feasibility study prepared for Toronto’s HudBay Minerals (operator and 70% owner) and Vancouver’s VMS Ventures (30% owner). The deposit,120 km from Flin Flon, is estimated to contain probable reserves of 2.2 million tonnes grading 3.83% Cu, 0.59% Zn, 0.48 g/t Au and 6.02 g/t Ag.

Initial production at Reed will come from the 260-metre level in zones 10 and 20 and from the 135-metre level in zone 30. Access will be by ramp. Run-of-mine ore will be trucked to Flin Flon where it will be crushed and batched through the Flin Flon concentrator. The full production rate of 1,300 t/d will be reached in Q1 2014.

Annual production will be 17,000 tonnes of copper metal in concentrate. Assumed metal recoveries are 94% Cu, 58% Au and 62% silver in a copper concentrate. Power will be generated on the mine site.

Detailed information about the Reed deposit is available at VMSVentures.com.