VMS is Doing a Placement for their Zn project-Heads Up Report Snapshot:
Overview
VMS Ventures Inc. (VMS on the Canadian Venture Exchange) is a Junior Mining Company currently exploring for base metals at four different locations in the Province of Manitoba. Its offices are located in North Vancouver, British Columbia. In January 2007 it changed its name from Rare Earth Metals Corp. to reflect its primary focus on exploration in the Flin Flon - Snow Lake Volcanogenic Massive Suphide belt in northern Manitoba. This prolific belt has been mined for 75 years with over 20 past and producing mines. Several VMS properties are located in close proximity to the Chisel North, 777 and Trout Lake mines held by Hudson Bay Minerals (HBM.T), one of the world’s leading Zinc producers. Over the past two years VMS has assembled a portfolio of 12 mining properties covering over 70 sq. km. in the Snow Lake area whose geological formation indicates the likely presence of commercially viable Zn-Cu-Au-Ag deposits.
On March 20, 2007 the company announced that it was beginning a VTEM (Versatile Time-Domain Electromagnetic) survey of its Snow Lake properties. From the press release: “VTEM is the leading airborne geophysical system in use today. The survey will cover the portions of the claim group, which exhibit surface or drill intercepts of massive sulphide mineralization and alteration associated with these types of deposits and where favorable host rock units have associated metal enrichment in soils indicating the presence of buried deposits.”
Potential
HBM has proven & probable reserves in its three neighbouring mines of over 20 million tonnes, with grades of 3% CU and 4 to 8% ZN. This excludes possible reserves.
VMS management believes that the potential exists for the discovery of a 5 million + tonne Zn-Cu deposit.
(All reserve estimates/metal prices are in USD)
3% CU = 66 lbs/tn @ $2.00/lb = $132/tn
5% ZN = 110 lbs/tn @ $0.70/lb = $77/tn
Total Gross CU + ZN value = $209 X 5,000,000 = $1.045 billion
Copper is currently trading in the $3/lb range, while zinc is close to $1.40/lb. Stockpiles of both continue to hover near multi-year lows on the LME.
Other Properties
The Company's other projects include the Lynn Lake Gabbros nickel-copper properties in the Lynn Lake Nickel Belt, the South Bay nickel-copper-cobalt PGE property, and the Eden Lake Carbonatite Complex, Specialty Metals property. Lynn Lake and South Bay both require further exploration,. The Lynn Lake property was historically Canada’s third largest nickel producing region, while the South Bay property is adjacent to an area where high-grade nickel mineralization was discovered in 2003. The Eden Lake property has shown the presence of rare earth metal deposits, but requires further exploration.
Geologists
The company has assembled a geological including Dr. George H. Gale, Ph.D., Vice President of Exploration & Director. Dr. Gale has extensive experience in Volcanogenic Massive Sulphide (VMS) deposit types, and his knowledge of the geology of Manitoba will be an advantage in the development of the Snow Lake Properties.
Comparable Zinc-Focused Companies
Selkirk Metals (SLK.V) – holds several base metal exploration properties including the Ruddock Creek Property in British Columbia, which indicated high grades of Zinc in a 2006 drilling program. Market Cap of CAD $37 million.
Tamerlane Ventures Inc. (TAM.V) – holds the Pine Point Zinc-Lead property in Canada’s NorthWest Territories, site of an historic high-grade mine. The company is currently conducting a feasibility study into the reopening of the mine. Market Cap of CAD $19 million.
Firestone Ventures (FV.V) – holds the Torlon Hill Zinc Property in Guatemala and the Sonora Gold-Silver Property in the Yukon Territories. Both properties showed some initial potential in 2006 drill programs. Market Cap of $23 million.
Summary
VMS is an early-stage exploration company with a solid portfolio of exploration properties. Its properties are all located in Manitoba, rated by the free-market Fraser Institute as one of the world’s most favourable mining locations fraserinstitute.ca |
