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VMS:TSX.V
Explorer to Producer
NAN: TSX.V
The World’s Next Nickel Belt
March, 2012
Discovering High Grade Copper Deposits in Manitoba, Canada
FORWARD-LOOKING STATEMENTS
NOTE:
Some of the statements contained herein may be forward-looking
statements which involve known and unknown risks and uncertainties.
Without limitation, statements regarding potential mineralization and
resources, exploration results, and future plans and objectives of the
Company are forward-looking statements that involve various risks. The
following are important factors that could cause the Company’s actual
results to differ materially from those expressed or implied by such
forward-looking statements: changes in the world wide price of mineral
commodities, general market conditions, risks inherent in mineral
exploration, risks associated with development, construction and mining
operations, the uncertainty of future profitability and the uncertainty of
access to additional capital. There can be no assurance that forward-looking
statements will prove to be accurate as actual results and future
events may differ materially from those anticipated in such statements.
VMS Ventures Inc. undertakes no obligation to update such forward-looking
statements if circumstances or management’s estimates or opinions
should change. The reader is cautioned not to place undue reliance on
such forward-looking statements.
Introduction to VMS Ventures Inc. HudBay Minerals JV and 4 Option Agreements
• Reed Copper Deposit• Preliminary Economic Assessment • Additional targets…expanding resource
Flin Flon – Snow Lake Belt - a World Class VMS Camp
2011 Highlights/2012 Plan North American Nickel – 45% VMS ownership
Discovering High Grade Copper Deposits in Manitoba, Canada
VMS VENTURES INC.
CAPITAL STRUCTURE(as at March, 2012)
Issued & Outstanding: 128,968,399Warrants: 163,333Options: 10,183,850Fully Diluted: 139,315,582
Well funded junior with approximately $11.2M in the treasury.
Discovered the copper rich Reed Copper deposit in Manitoba in 2007.
• JV Partner HudBay Minerals (T.HBM) is project operator; VMS costs carried to production. Project ownership is 70% HBM & 30% VMS.
Reed Copper deposit PEA announced in December 2011. Indicated Resource: 2.55M Tonnes of 4.52% Cu, 0.64 g/t Au, 7.86 g/t Ag
Large, highly prospective land package in the prolific Flin Flon – Snow Lake Greenstone Belt of Manitoba
VMS owns ~45% of North American Nickel
QUICK FACTSVMS - TSX.V
VMS VENTURES – HUDBAY JV & OPTIONS PROJECTS
VMS-HudBay JV
• 30-70 joint venture, VMS carried to production.
• Hudbay is operator.• NI 43-101 Geological
Resourced April, 2011• PEA announced
December, 2011
4 Option Agreements• HudBay is operator.• $2.6 M in cumulative
expenditures to earn 70%.• Upon discovery VMS is
carried on first $50 million of expenditures.
• Cumulative $2.8 M paid to VMS in July, 2010.
43-101 indicated resource estimate completed (30% VMS) Super Zone discovered (30% VMS) Cowan River Zone discovered (100% VMS)
2011 HIGHLIGHTS
NI 43-101 INDICATED / INFERRED GEOLOGICAL RESOURCE
Snow Lake 75 km
Flin Flon 115 kmCategory Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%) Au (oz) Ag (oz) Cu (lbs) Zn (lbs)
Indicated 2,555,000 0.64 7.86 4.52 0.91 57,674 708,303 254,069,200 51,151,100
Inferred 170,000 0.38 4.55 4.26 0.52 2,278 27,281 15,932,400 1,944,800
Planview
Sectional View
REED COPPER DEPOSIT - PEA
Preliminary Economic Assessment – Announced December, 2011
• Approximate daily ore production of 1,300 tonnes at Reed is expected by late 2013, subject to receipt of required permits.
• Average expected production grades of 3.78% copper, 0.45 g/t gold and 5.77 g/t silver.
• Assumed metal recoveries in HudBay’s Flin Flon Concentrator of 94% copper, 58% gold and 62% silver.
• Average production in concentrate of approximately 17,000 tonnes per year of copper metal.
• Total operating costs estimated to average approximately $91 per tonne milled ($67 per tonne mining, $16 per tonne milling and $8 per tonne administration) over a five year mine life.
• Sustaining capital expenditures are expected to total approximately $55 million over the five year mine life.
REED COPPER DEPOSIT - PEA The high grade nature of the Reed Copper deposit gives the project substantialleverage to copper prices. The following table outlines a copper price sensitivity analysis based on the operating parameters set out in the PEA.
PEA 3 Year HistoricalBase Case (1) Average Price Case (2) Cu = $3.50/lb USD (3)
Price and Exchange AveragesCopper (USS/lb) $2.78 $3.20 $3.50
Gold (US$/oz) $1,059.00 $1,235.00 $1,235.00Silver (US$/oz) $21.14 $22.85 $22.85
US$/CDN$ 0.92 0.94 0.92
Pre-taxCash Flow $112,283,000 $182,975,000 $257,028,000
NPV 8% $64,917,000 $109,904,000 $174,365,000IRR 36.70% 46.60% 61.40%
(1) PEA Base Case metal prices projections compiled by HudBay based on 11 well-known financial institutions.
(2) Bloomberg three year historical average (December 1, 2008 to December 1, 2011)(3) $3.50 copper price for perspective on valuation impact of copper price
MORE MINERALIZATION AT REED LAKE??
VMS-HudBay JV
• Borehole Pulse Electromagnetic targets indicate the deposit is open at depth
• Large BHPEM plates exist between the Reed Copper Deposit and the historical Highway zone – UNTESTED!!
• Winter 2012 drill target.
Open down plunge
REED NORTH DISCOVERY
Longitudinal View, Looking North Cross Sectional View, Looking West
BHPEM Plates
Open DownPlungeUntested BHPEM
Plates
Multi-lenses, 2011 discovery with limited drilling
RLE006 – 7.18m, 7.44% Cu, 0.23% Zn, 0.48 g/t Au, 7.57 g/t AgRLE021 – 3.95m, 9.31% Cu, 1.87% Zn, 3.59 g/t Au, 35.53 g/t Ag
ORE BODIES TEND TO GROW IN THE FLIN FLON BELT
After K. Gilmore (Hudbay Minerals), 2007
FLIN FLON GREENSTONE BELT
• Largest Proterozoic VMS District in the world.
• Most prolific greenstone belt in Canada in terms of $ value of production/km2.
• Continuous production for past 80 years
• 183 million tonnes from 27 mines.
• VMS mines/deposits rich in copper, zinc, gold and silver.
• Deposits typically occur in clusters.
• Gold mines/deposits throughout belt.
MAP AREA
A WORLD CLASS VMS CAMP
SNOW LAKE BELTSNOW LAKE BELT
Lalor Lake(Hudbay)
Lalor Lake(Hudbay)
Reed Lake(VMS Ventures Inc.)
Reed Lake(VMS Ventures Inc.)
VTEM COVERAGE OVERVMS VENTURES’ PROJECTS
• Many recent discoveries, including VMS’s Reed Lake Deposit, were made with VTEM
• VMS Ventures has flown over 17,000 line-km of VTEM over its projects, majority flown at 100 m line spacing.
• 5 years and $13 million in work – Targets ready to drill.
DISCOVERY PROGRESSION
• Early discoveries were made by prospecting.
• Recent discoveries made through a combination of geological and geophysical work in the exposed portion of the belt.
• VMS now employs state of the art airborne geophysics and high powered, Time-Domain Electromagnetic surveys (surface and borehole) to look deeper, under the Phanerozoic cover to refine the targeting of drill holes on mineralized zones. After K. Gilmore (Hudbay Minerals), 2009
2011 HIGHLIGHTSHudBay JV Option Properties• NI 43-101 resource at Reed Copper deposit; PEA on Reed Copper deposit• Reed North Discovery (Super Zone property)
• 7.44% Copper over 7.18 metres discovered in hole RLE006• 5.94% Copper over 2.23 metres discovered in hole RLE007
• New targets on JV and option ground
VMS 100% Owned Properties• Drilled 13,128 metres in 41 holes• Flew 4,648 km of VTEM surveys• 87 km of TDEM surveys• Cowan River Copper Zone
• 9.81% Copper over 1.37 metres within 6.59 metres of 2.25% Copper• 32 km TDEM Grid recently completed
• Sails Lake• 3D Induced Polarization Integrated with trench mapping and channel
sampling at Sails Lake gold showing
2012 PLANHudBay JV Option Properties
• 4,000 m of drilling on JV • 4,000 m of drilling on optioned properties• 50 line km of TDEM VMS 100% Owned Properties
Manitoba Projects
• Morton, Puella Bay, Cowan River and McClarty projects scheduled for diamond drilling in Q1
Sudbury Projects
• Golden Pine, Black Creek & Terra Incognita scheduled for prospecting/trenching in Q2, auger drilling and diamond drilling in Q3
North American Nickel
• TEM Surveys and drilling in 2012
NORTH AMERICAN NICKEL INC.
VMS owns ~45% of North American Nickel.
Dr. Mark Fedikow, President and COO.
Camp-scale land position in the emerging Maniitsoq Nickel Belt, Greenland
Major projects situated in Thompson and Sudbury, the two most productive mining camps in the world class Circum-Superior Nickel Belt.
TSX.V: NAN
MANIITSOQ PROJECT, GREENLAND
100% interest in a giant mineral exploration licence covering 4,983 km2 covering the highly prospective, but underexplored Maniitsoq Nickel Belt.
Located on year-round, ice free tide water on the southwest coast of Greenland, near the village of Maniitsoq.
Maniitsoq (looking east)
THE MANIITSOQ NICKEL BELT- PLENTY OF ROOM FOR WORLD CLASS
DEPOSIT(S)Belt is arcuate shaped, 75
km long by 15 km wide and characterised by nickel-bearing noritic intrusions.
Numerous significant nickel showings with consistently high nickel tenor.
From Eckstrand & Hulbert, 2007
Voisey’s Bay Deposit at map scale.
Plan view of the Voisey’s Bay intrusion (from Eckstrand & Hulbert, 2007)
MANIITSOQ PROJECT2011 SKYTEM RESULTS
Helicopter EM and magnetic surveys by NAN in 2011 over two small areas (totaling only 8% of the project area) successfully delineated new targets.
Additional helicopter EM surveys and drilling planned for 2012.
Historical WorkAlmost all showings
were discovered in the 1960’s and early 70’s.
Average hole length less than 50 meters.
Slide 21
3D EM Modeling Target B1-J• 170 m long by 16 m wide conductor that comes to
surface and is directly coincident with the Imiak Hill showing.
• The model shows that the mineralization strikes parallel to most of the historical drilling and therefore has not been properly tested.
• The model has very limited dip extent (21 m) but the best intersection on the showing (9.85 m averaging 2.67% Ni and 0.60% Cu) occurs 130 m below surface indicating that strong mineralization at surface is masking the EM response from mineralization at depth. FOOTWALL
CONTACTOF NORITE
9.85m @ 2.67% Ni, 0.60% Cu
STRIKE
9.85m @ 2.67% Ni, 0.60% Cu
TARGET B1-J (IMIAK HILL): 3D VIEW LOOKING WEST
Slide 22
3D EM Modeling Target B1-B
• 700 m long, near surface conductive zone.
• No previous drilling.• Characteristics and
orientation of the conductor vary considerably along strike suggesting it is not formational.
• Magnetic data suggests that it is hosted in a large (2.5 x 1.0 km) norite body.
Target B1-B
InterpretedNorite
Slide 23
3D EM Modeling Target B1-L
• Modeled as a 330 x 100 m flat-lying conductor located 160 m below surface within a norite intrusion.
• The conductor is untested but past shallow drilling 100 m above intersected weakly disseminated, nickeliferous sulphides grading up to 0.52% Ni and 0.26% Cu over 12.94 m.
• Clearly, mineralizing processes were at work in the intrusion as indicated by the disseminated near-surface mineralization and the most logical location to look for massive sulphides is at depth.
100 m330 m
TARGET B1-L (SPOTTY HILL): 3D VIEW LOOKING NORTH
~ 160 m BELOW SURFACE(i.e. 100 m BENEATHPREVIOUS DRILLING)