Reed Lake Drilling Paying Off For VMS Ventures

Vancouver — The Reed Lake discovery continues to return solid copper-zinc-silver-gold intersections for VMS Ventures (VMS-V, VMSTF-O).

Results from summer drilling program at the volcanogenic massive sulphide (VMS) discovery near Snow Lake, Man., show that Reed Lake is home to two mineralized lenses. Intercepts showing debris flow sulphides come from what’s now called Lens A, a stratigraphically controlled body 3 to 5 metres thick that trends roughly east-west and dips about 75 north.

Drilling at Snow Lake also returns high-grade chalcopyrite in sections rich in pyrrhotite (iron sulphide). Those hits came from Lens B, a copper-rich near-solid sulphide zone that is near vertical and extends to the southwest. On the westernmost section drilled to date, Lens B is located 50 to 75 metres south of Lens A.

In the most recent results from Reed Lake, hole 71 hit Lens B and returned 39.7 metres grading 4.04% copper, 0.31% zinc, 6.88 grams silver per tonne and 0.23 gram gold. It was the westernmost hole into Lens B to date.

In other recent results, hole 65 hit 99.3 metres grading 1.08% copper, 0.11% zinc, 1.84 grams silver and 0.03 gram gold from 144 metres depth. The mineralized intercept in hole 64 was shorter but carried better grades: 14.5 metres grading 3.27% copper, 0.32% zinc, 7.1 grams silver and 0.04 gram gold.

And one of the best results to date from Lens B came from hole 61, which returned 3.59% copper and 0.11% zinc over 100.2 metres from 232 metres depth, including 16.3 metres grading 14.58% copper and 0.13% zinc. Silver and gold assays are still pending.

And to note just two other significant intercepts from Lens B: hole 55 cut 62 metres grading 5.96% copper and 0.12% zinc, from 147 metres depth and hole 53 returned 3.08% copper and 0.09% zinc over 53.2 metres, starting 131 metres down-hole.

Lens A also returned some significant intercepts. Hole 66, collared at the north end of the zone, cut 4.4 metres grading 4.46% copper, 1.65% zinc, 11.31 grams silver and 0.78 gram gold from 85 metres depth. Hole 62 returned 10.42% copper, 1.16% zinc, 17.09 grams silver and 0.76 gram gold over 2.3 metres and hole 63 hit 3.7 metres grading 4.51% copper, 0.9% zinc, 11.2 grams silver and 0.54 gram gold; both intercepts started at 120 metres depth.

VMS Ventures hit volcanogenic massive sulphide mineralization at Reed Lake in the fall of 2007, lifting its share price to $1.50 from 20. Its share price had settled considerably even before the recent financial turmoil pushed it back to its pre-discovery price. The company, which has 108 million shares issued, is currently trading near the 30 mark.

Reed Lake VMS mineralization is contained in moderately to intensely altered felsic volcanic rocks, typical of other VMS deposits along the Flin Flon-Snow Lake Proterozoic belt. VMS Ventures has been picking up property in the Snow Lake area for the last few years and now holds 12 distinct land packages in the Flin Flon-Snow Lake belt.