Dear VMS Followers,
Today's announcement of additional high-grade copper intersections in follow up drill holes on the Reed North discovery zone confirms to us that this target is more than a one or two hole phenomena and has serious potential to grow. A clearer picture is starting to form with respect to how the mineralization is deposited and where to look for more of it. Two separate zones of mineralization have now been recognized and deeper targets are being evaluated for drilling later in the season.
The current drilling is concentrating on the northeast end of a chain of anomalies that stretches over 1 km in length. (see figure 1 from the release below). The opposite end of the anomaly chain contains historical drill intercepts from the 1970's with high-grade copper-zinc mineralization. This one kilometre long anomaly was not recognized in the older geophysical systems flown over the property. It only became obvious when the modern helicopter airborne survey (VTEM), flown by VMS in 2007/2008, resulted in its continuity along strike and its depth potential being better defined.
Our partner, HudBay Minerals, is now undertaking the detailed survey work and down hole geophysical surveying necessary to locate new specific targets for more drill testing. Given the size of this anomaly and the numerous other prospective anomalies that remain to be drill tested on the property, we expect years of exploration and development to come.
Our option agreements provide for HudBay to carry VMS for the first $50 million of development expenditures for any new deposit discovered.
A final note, the RLE021 intersection announced this morning also includes high gold and silver credits which would contribute significantly to the economics of any deposit defined in this zone.
Best Regards,
John Roozendaal, B.Sc.
President
VMS Ventures Inc.
