Vancouver, B.C., July 24, 2013 VMS Ventures Inc. (TSX-V:VMS) (“VMS Ventures” or the “Company”) is updating shareholders on progress made during the month of June at the Reed Copper Project, near Flin Flon Manitoba. VMS Ventures owns 30% of the project and is carried to production. Hudbay Minerals Inc. (TSX:HBM)(NYSE:HBM) ("Hudbay") owns 70% and is the Operator.
Highlights at the Reed Copper Project Include:
• Ramp development advanced a further 142m taking the total development to 819m for the project to date. • Escape and ventilation raises from surface and camp expansion were completed. • Construction of diesel fuel and surface oil containment areas was completed. • Project remains on schedule and is forecast to be completed on budget by the end of March 2014.
COO Neil Richardson states: “While the rate of ramp development slowed in March due to difficult ground conditions, advancement has since returned to the planned rate and the project remains on time and on budget. We remain impressed with our partner Hudbay Minerals and its ability to keep the project on schedule while maintaining a strong safety record with 473 days without a lost time accident to date on the project.”
Summary of the Reed Mine’s Economic Assessment
? Initial production at Reed is expected by Q 4 - 2013 and will ramp up to full production of approximately 1,300 tonnes per day by Q1 - 2014.
? Average expected reserve ore grades of 3.83% copper, 0.48 g/t gold and 6.02 g/t silver, slightly better than PEA due to the exclusion of the inferred resources in the pre-feasibility study.
? Assumed metal recoveries in HudBay’s Flin Flon Concentrator of 94% copper, 58% gold and 62% silver.
? Production ~ 17,000 tonnes of copper metal concentrate per year.
? Total operating costs estimated to average approximately $90 per tonne milled ($67 per tonne mining, $16 per tonne milling and $7 per tonne administration) over a five year mine life.
? Sustaining capital expenditures are expected to total approximately $52 million over the five year mine life.
? Pre-Feasibility pre-tax NPV (8%) of $57.4 million using weighted average metal prices of US$2.95/lb. for copper, US$1,269.09/oz. for gold and US$24.78/oz. for silver.
? Forecasted cash flow of $102 million dollars to the JV or a 34.7% IRR.
