VANCOUVER — Strong drill results from the copper-zinc volcano-genic massive sulphide (VMS) discovery atReed Lake gave VMS Ventures (VMS-V, VMSTF-O) a healthy boost in recent trading.
Hole 20 intersected a 52-metre mineralized interval starting 42 metres below surface that assayed 2.25% copper, 3.17% zinc, 17.4 grams silver per tonne and 1.39 grams gold, including 4.6 metres of 8.49% copper, 5.07% zinc, 58.28 grams silver and 4.91 grams gold.
Hole 14 returned 31.4 metres grading 1.03% copper, 4.57% zinc, 14.95 grams silver and 0.71 gram gold from 70.6 metres depth, including 11.3 metres of 1.77% copper, 6.26% zinc, 26.14 grams silver
and 1.29 grams gold. And hole 16 cut 3.6 metres grading 2.15% copper, 3.43% zinc, 18.17 grams silver and 0.96 gram gold from 63.4 metres.
The news boosted VMS Ventures’ share price by 11 or 13% to 97 on 8.4 million shares traded. The stock has a 52-week range of 13-$1.76 and has 107.3 million shares issued.
The company currently has two drills turning at Reed Lake, both on the Discovery zone. One is exploring mineralization downdip and to the west; the second is probing the southwest-trending geophysical anomaly detected in the first phase of the deep electromagnetic survey. A third drill will start reconnaissance-style drilling on other geophysical and geochemical targets in the next four to six weeks.
In mid-September, VMS Ventures announced that six drill holes showed significant VMS mineralization or indicators. October saw results from the first three holes with hole 2 returning 43 metres grading 4.38% copper, 1.56% zinc, 13.09 grams silver and 0.85 gram gold from 198 metres depth. VMS Ventures saw its share price jump to the $1.50-range from around 20.
During the next few months, the company’s share price fell back to around 80. A series of drill results had since helped it regain some ground. In late January, the results from two further holes were released. Hole 7 intersected 26.3 metres grading 1% copper, 4.48% zinc, 12.34 grams silver and 0.81 gram gold from 123 metres depth, while hole 10 cut 43 metres grading 0.72% copper, 4.27% zinc, 9.39 grams silver and 0.62 gram gold. Several other holes failed to intersect significant mineralization.
A few weeks later, hole 12 assayed 31.7 metres grading 2.09% copper, 3.56% zinc, 18.52 grams silver and 1.38 grams gold from 173 metres down-hole.
Reed Lake consists of a property optioned from W. Bruce Dunlop, another under option from Hudson Bay Exploration and Development, a subsidiary of HudBay Minerals (HBM-T, HBMFF-O), and several claims staked by VMS Ventures.
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 belt.
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