Vancouver – It only took an hour for VMS Ventures to trade 18 million shares and jump 74% after announcing assay results from the second hole on the companys Reed Lake copper-zinc property in Manitoba.
In mid-September VMS revealed a volcanogenic massive sulphide (VMS) discovery at Reed Lake, with six drill cores showing VMS mineralization or indictors. The first hole, announced with the discovery, intersected veinlets and disseminations of pyrrhotite, chalcopyrite, and pyrite over 37.5 metres from 132 metres depth. Two of the 0.5-metre interval sample returned copper grades greater than 1%.
Oct. 4th saw results from the second hole at Reed Lake. Hole 2 returned 43 metres grading 4.38% copper, 1.56% zinc, 0.85 gram gold per tonne, and 13.09 grams silver per tonne from 198 metres downhole. The broader intercept included 10.5 metres grading 11.19% copper, 1.39% zinc, 1.62 grams gold, and 29.26 grams silver.
The results came out during a VMS trading halt of almost two days. Shares resumed trading only an hour before the markets closed, in which time the stock gained 59 then fell back 4 to close at $1.29, an all-time high for the company. VMS has a 52-week trading range of 9 to $1.33 with 59.1 million shares issued.
Hole 2 was drilled to a total depth of 270 metres within an 800-metre long southwest-trending versatile time-domain electromagnetic (VTEM) anomaly. The VTEM anomaly at Reed Lake sits some 15 km west of the former Spruce Point Mine.
Assays for the remaining four holes are still pending. Hole 3 was collared 100 metres north of holes 1 and 2 within the same anomaly; holes 4, 5, and 6 were drilled 1 to 1.5 km east of the discovery. The Reed Lake property consists of a property optioned from W. Bruce Dunlop, another property under option from Hudson Bay Exploration and Development, a subsidiary of HudBay Minerals (HBM-T), and several claims staked by VMS.
The 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 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.
Be the first to comment on "Reed Lake results boost VMS Ventures (October 05, 2007)"