Jeff,


The Reed mine will be operated 24/7 for approximately 6 years every month of the year.

The mine is underground not an open pit and so protected from the elements. It is located 100 m from a paved all weather highway so transportation is in no way effected by the seasons. This just isn't an issue and mines have been operated in the same fashion in to the north, east and west of this deposit for about 80 years now and over 100 million tonnes of high grade copper-zinc with gold-silver credits have been produced so far.

Best Discoveries in the area.

1. Hud Bay & VMS Reed Lake deposit which is planned to commence production next summer and be in full production by January 2014, costs only $75 million to construct.

2. Hud Bay Lalor deposit discovered over 800m below surface and it will cost nearly $700 million I believe and is a few years away from full production.



Many mines have been and are still operating and being developed as far north as the high arctic. Just think about the two world class diamond mines in Canada's North West Territories one of which required them draining a lake and mining in a large open pit through the worst winters outside of Antarctica and they are making billions of dollars.



This mine will run 24 hours a day, 7 days a week every month of the year. At current metal prices they stand to earn about $100 million in cash flow assuming it doesn't get any bigger which these deposits tend to do once they get underground and can drill cheaply from below ground drill stations.

All the best,

Auriferous

Auriferous wrote:
Jeff,


The Reed mine will be operated 24/7 for approximately 6 years every month of the year.

The mine is underground not an open pit and so protected from the elements. It is located 100 m from a paved all weather highway so transportation is in no way effected by the seasons. This just isn't an issue and mines have been operated in the same fashion in to the north, east and west of this deposit for about 80 years now and over 100 million tonnes of high grade copper-zinc with gold-silver credits have been produced so far.

Best Discoveries in the area.

1. Hud Bay & VMS Reed Lake deposit which is planned to commence production next summer and be in full production by January 2014, costs only $75 million to construct.

2. Hud Bay Lalor deposit discovered over 800m below surface and it will cost nearly $700 million I believe and is a few years away from full production.



Many mines have been and are still operating and being developed as far north as the high arctic. Just think about the two world class diamond mines in Canada's North West Territories one of which required them draining a lake and mining in a large open pit through the worst winters outside of Antarctica and they are making billions of dollars.



This mine will run 24 hours a day, 7 days a week every month of the year. At current metal prices they stand to earn about $100 million in cash flow assuming it doesn't get any bigger which these deposits tend to do once they get underground and can drill cheaply from below ground drill stations.

All the best,

Auriferous

Thanks Auriferous, by your quick reply, I'm guessing I would have FOUND those answers had I dug through the technical report.



But this begs the question: with companies OFTEN adding GENERAL info about a project with any particular news release, then wouldn't it be a GREAT idea for VMS and HudBay of getting into the practice of MENTIONING the operating parameters for the project????

That way, when news about "abandoned drill holes" surfaces it doesn't create doubts in the minds of the "casual investor" (i.e. myself)...

Obviously if it's a clear technical fact that the UNDERGROUND mining isn't subject to the same SURFACE constraints encountered when they are drilling then it would only make sense for these companies to broadcast that at every opportunity. (You might even want to suggest that to IR?)

Best of luck with this one!

Thanks Jeff,


I will pass that along the next time I speak with their IR. I have asked similar questions before and usually the response is that due to the restrictions of formal press releases in both size and content and the very wide range of experience in the audience they have to keep things limited to the facts at that particular milestone but maybe in their website or in the management messages to their shareholder base might be the appropriate venue for this kind of info. Good thought.

Regards,

Auriferous

News Release

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 10, 2012) - VMS Ventures Inc. (TSX VENTURE:VMS) ("VMS") is pleased to announce an update on the development of the Reed Copper deposit. The Reed Copper deposit is located 120 kilometres from Flin Flon, Manitoba and is the subject of a Joint Venture with Hudbay Minerals (TSX:HBM)(NYSE:HBM) ("Hudbay"). VMS owns 30% of the Reed Joint Venture.

Construction activity on-site at the Reed Copper deposit is advancing on schedule. Initial production is expected by third quarter of 2013, and is anticipated to ramp up to full production of approximately 1,300 tonnes per day by the first quarter of 2014.

The main access road to the project is now complete and clearing and leveling has begun for ore stockpiles, office and storage buildings, and settling ponds.

Grouting is on-going and progressing well in preparation for trenching of the portal entrance. Placement of limestone gravel fill for the warehouse and shop is in progress.

VMS Ventures COO Neil Richardson , states: "We are excited to see the development of the Reed Copper deposit take shape and it remains on schedule for full production. Equipment is on the ground opening up the mine site for surface infrastructure and we are confident that Hudbay will continue to develop Reed on schedule and within budget."

A status report is expected from Hudbay regularly. VMS shareholders will be kept informed throughout the Reed Copper deposit's development.

Details on the NI 43-101 geological resource or the Preliminary Economic Assessment of the Reed Lake Copper deposit are available at www.sedar.com.

Qualified Person

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.

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 Project, 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.

fyi,


Interview & Article

Keep your chin up Auriferous!

I'm a holder in these companies too. So I know (painfully well) exactly how hard it is to maintain one's enthusiasm when you're holding VALUABLE equities which have driven to a fraction of their real value (through the nefarious deeds of the bankers).



The project looks good, and VMS' current value (relative to what its piece of the pie is worth) does make it look significantly undervalued - as our MANY of these juniors.

Since Brian and I always stress the importance of a sound financial base for these juniors (ESPECIALLY during times of market stress), the following quote from that link may be of interest to potential investors:

Financial Information

Mr. Roozendaal admits that the stock price has depreciated in the recent past along with every other resource company, but he adds that they have about $11 million in the bank, so VMS Ventures is well-financed. Again, he clarifies, “We don’t need that cash for development of the mine, so we have that cash available for us to seek out and explore other properties.”



Mr. Roozendaal also adds that VMS Ventures has an experienced team and about a $35 million market cap. Mr. Roozendaal calculates, “we’re getting 12 cents per share for 30% of the Reed Lake Mine. So, current copper metal prices of $3.75 would generate about $100 million in cash flow over a 5 to 6 year period. So, right now we’re at quite a discount.”

“we’re getting 12 cents per share for 30% of the Reed Lake Mine. So, current copper metal prices of $3.75 would generate about $100 million in cash flow over a 5 to 6 year period. So, right now we’re at quite a discount.”

Thanks Jeff

VMS ACQUIRES LARGE LAND PACKAGE ADJACENT TO THE REED COPPER MINE PROPERTY, SNOW LAKE MANITOBA


Vancouver, B.C., June 21, 2012. VMS Ventures Inc. (TSX-V: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.

tmx.quotemedia.com/article.php?newsid=52...07&qm_symbol=VMS

Interesting stuff here Auriferous.

What (potential) investors need to do when they see such news is to check out the "new land". Was there any previous development (i.e. "historic" mining/drilling data)? Obviously the more "virgin" the territory, generally the cheaper that companies can buy it. But that also makes the purchase more speculative.

The EXCEPTION to this is where a deposit which a company is drilling is "open" (laterally) at a particular boundary of their own property. Obviously if an ore body extends to the very EDGE of a property then if one buys that ADJACENT property, one knows there must be at least SOME mineralization - even if it terminates unexptectedly/abruptly.

Thus what diligent investors need to do is to ascertain WHERE VMS's deposit is located, and whether this new land package is more likely or less likely to contain additional ore. Obviously it's NEVER "bad news" when a miner acquires new land, we just don't often know if it's actually "good news" for quite some time...

Thanks Jeff,

fyi, I recieved this letter from VMS Ventures today.

Today’s news of our acquisition of the Reed East and Reed West claims enhances our opportunity for more discoveries in the same host rocks as our high grade copper Reed deposit. The map below shows the location of these claim blocks related to the Reed deposit.

The new properties have already been flown and the resultant VTEM data has established some interesting target areas for us to pursue. We will begin the work of defining specific drill targets this summer in preparation for this winter’s drill program.

In this fear based market we are all experiencing, VMS is now regularly seeing opportunities that can enhance shareholder value. We are systematically evaluating them with a view to doing deals. We believe the acquisition of target rich Reed East and Reed West for a share position in VMS provides discovery upside at a reasonable cost to shareholders.

We have approximately $10 million in our treasury and an outstanding technical team, so, an upside to this very negative market where money is difficult to obtain, is that it creates a wide variety of new opportunities for our team to consider.