VMS Ventures and operating partner HudBay Minerals to commence production at the Reed Mine in 2013
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.
? Average production in concentrate of approximately 17,000 tonnes per year of copper metal.
? 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.
Exploration is ongoing on the company’s other properties.
