VANCOUVER, BRITISH COLUMBIA–(Marketwired – May 1, 2014) - VMS Ventures Inc. (TSX VENTURE:VMS) (“VMS Ventures” or the “Company”) is pleased to update shareholders on the progress made at the Reed mine, near Flin Flon Manitoba. VMS Ventures owns 30% of the mine and is carried to production. Hudbay Minerals Inc. (TSX:HBM)(NYSE:HBM) (“Hudbay”) owns 70% and is the Operator.
The Reed copper project advanced to mine status after achieving commercial production on March 31, 2014.
- Averaging 60% of full production tonnage (1,300 tonnes per day) over the last 90 days, having operated at 792 tonnes per day in the first quarter of 2014.
- During the first quarter Reed mined 71,236 tonnes of ore at a copper grade of 1.92% and a zinc grade of 2.14% from a combination of ore development and longhole stope mining.
- The project has invested $66 million to the end of Q1, 2014 and approximately $4 million of project capital will be spent as sustaining capital over the life of mine.
- The project was completed under budget and ahead of guidance with no lost time accidents.
- Sale of copper and zinc concentrates will start to pay back the Company’s project loan and advance VMS towards cash flow.
- During the month of March development advanced 288 metres or 9.3 metres per day, for a total of 3,215 metres project to date.
- 27,407 tonnes of ore were mined in March.