VMS:TSX.V Manitoba s Next Copper Mine NAN: TSX.V Maniitsoq, Greenland: Discovering The World s Next Ni- Cu-Co-PGM Belt February, 2013

Transcription

1 Discovering High Grade Copper Deposits in Manitoba, Canada VMS:TSX.V Manitoba s Next Copper Mine NAN: TSX.V Maniitsoq, Greenland: Discovering The World s Next Ni- Cu-Co-PGM Belt February, 2013

2 FORWARD-LOOKING NOTE: STATEMENTS 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. Slide 2

3 VMS VENTURES INC. VMS - TSX.V QUICK FACTS Well funded; over $10.4M in the treasury Reed Copper deposit discovered in June 2010: Joint Venture signed with HudBay Minerals (T.HBM). HBM is project operator; VMS project costs carried to production. Project ownership is 70% HBM & 30% VMS. Reed Copper Deposit Prefeasibility Mineral Reserves: 2.16M tonnes of 3.83% Cu, 0.48 g/t Au, 6.02 g/t Ag CAPITAL STRUCTURE (as at February, 2013) Issued & Outstanding: 129,668,399 Warrants: 163,333 Options: 8,442,500 Fully Diluted: 138,274,232 Underground development underway and production to begin Q4 2013; cash flow in 2015 Other assets : 21M shares of North American Nickel (NAN.TSX.V) a large 100% owned land package in the Snow Lake-Flin Flon Greenstone Belt in Manitoba, Canada; drilling planned for winter 2013 Slide 3

4 VMS/NAN MANAGEMENT Rick Mark, M.Ed (Admin) CEO & Chairman VMS & NAN: Rick has over 25 years experience in the public market place. He is also CEO & Chairman of Harvest Gold Corporation (HVG-TSX.V), a December 2005 "spin off" from VMS, and is the President and CEO of Pancontinental Uranium Corp. (PUC-TSX.V). Neil Richardson P. Geo. COO, VMS & NAN: Neil has a long history of mineral exploration and mining experience with HudBay Minerals and others. As the COO of both companies, Neil is responsible for developing and implementing exploration programs. Mark Fedikow, HBSc., M.Sc., Ph.D., P.Eng., P. Geo., C.P.G. : President & Director NAN, VP Exploration VMS: Mark has 35 years of industry and government experience including Chief Geologist of the Mineral Deposits Section in Manitoba. He is a recipient of the Canadian national award for outstanding geoscientific achievement. John Roozendaal B.Sc, President of VMS, Director of NAN: John was the founding director of VMS Ventures Inc. He has 20 years of Mineral Exploration experience and was directly involved in the Reed Copper discovery. John Pattison, P. Geo., B.Sc. Chief Geologist VMS and NAN: John worked with Falconbridge Limited and associated companies for 19 years managing base metal, PGE and gold exploration projects throughout Canada and southern Africa. He is the lead project geologist for the Maniitsoq, Greenland nickel project. 4 Slide 4

5 INDEPENDENT DIRECTORS & ADVISORY BOARDS Independent Directors: Gilbert Clark, Director, NAN: Mr. Clark is a European based Geologist with more than 13 years of industry experience; principally in mining and international resource developments. He is currently an Investment Advisor with The Sentient Group, an independent private equity investment firm specializing in the global resources industry. Don Whalen, Director & Audit Committee Chair, VMS: Don was Executive Chairman and Director of High River Gold Mines. Before joining High River, he held numerous marketing, technical and management positions over a 29 year career with IBM Canada Ltd. Jim Clucas, Director & Audit Committee Member, NAN: Jim was Chief Financial Officer of Inco s Canadian operations and has been involved in the development of several mineral deposits, including the Snow Lake Mine (High River Gold Mines), Montana Tunnels (Pegasus Mining) and the Fenix Project in Guatemala. He was the founder of International Nickel Ventures Inc. which acquired and developed the Santa Fe/Ipora Nickel Laterite deposit in Brazil. Jim is currently President and CEO of Search Minerals Advisory Board Cashel Meagher B.Sc. P. Geo.: Cashel is currently Vice President South America Business Unit of Hudbay Minerals. He has worked with the technical and management teams at VMS Ventures and North American Nickel through the Reed Lake joint venture with VMS. Prior to joining Hudbay, Cashel held management positions with Vale Inco in exploration, technical services, and mine operations. Mike Muzylowski: Mike has played key roles in the discovery of 15 Canadian mines, 13 in Manitoba, during his distinguished career as a geologist, geophysicist and senior mining executive. 5 Slide 5

6 REED COPPER DEPOSIT VMS-HudBay Reed JV VMS owns 30% of the project and is financed to production Prefeasibility Mineral Reserves: 2,157,000 tonnes of 3.83% Cu, 0.59% Zn and 0.48 g/t Au NPV $3.50 Cu = $130,534,000; IRR 58% Borehole Pulse Electromagnetic targets indicate the deposit remains open at depth. Underground drill stations will explore for additional ore bodies and further define the size of the deposit. Open Down Plunge Slide 6

7 REED PROJECT RIBBON CUTTING CEREMONY, AUGUST 2012 Slide 7

8 REED COPPER PROJECT CASH FLOW EXPECTED IN 2015 The high grade nature of the Reed Copper deposit gives the project strong leverage to copper prices. The following table shows a copper price sensitivity analysis based on the operating parameters set out in the Prefeasibility Study Published in May VMS Ventures Inc. Cu = $3.50/lb USD VMS Ventures Inc. Cu = $4.00/lb USD Prices and Exchange Rate Copper (USS/lb) $3.50 $4.00 Gold (US$/oz) $1, $1, Silver (US$/oz) $30.00 $30.00 US$/CDN$ 1 1 Pre tax Reed Cash Flow $249,673,000 $331,608,000 NPV8 $130,534,000 $195,010,000 IRR 58% 74% Slide 8

9 REED PROJECT OVERVIEW 1,300 tonne/day operation; Mine life 5 to 6 years 72,000 to 78,000 tonnes copper concentrate per annum Mining method is longhole open stoping Manpower : 77 employees at full production Power : 3 generators production up to 5,000 kwh Concentrating will be at HBM Mill in Flin Flon Slide 9

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13 TYPICAL EXPLORATION STOCK PRICE CYCLE Slide 13

14 ORE BODIES TEND TO GROW IN THE FLIN FLON BELT After K. Gilmore (Hudbay Minerals), 2007 Slide 14

15 VMS 100% OWNED PROPERTIES THE VTEM SYSTEM Slide 15

16 VTEM COVERAGE OVER VMS 100% OWNED PROJECTS Recent massive sulphide 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. 20 targets to be drilled this winter Slide 16

17 VMS 2013: ASSETS AND OPPOTUNITIES The Reed Copper Project January: Completion of surface construction and commissioning of 1.6 MW generator August: First production and completion of main ventilation fan 2014: Continued underground development to the 260 m level and full production. VMS 100% Owned Manitoba Properties $1.2M budgeted for winter 2013 drill program in the Snow Lake area. 3,000 m to 3,400 m of drilling is scheduled to test VTEM targets. $10M and cash flow coming = New Opportunities An important part of our Exploration Strategy We are actively seeking an advanced stage project and expect many to come available this year, as Companies run out of money or cannot raise money. North American Nickel (VMS owns ~21M shares) District wide drill program planned for Maniitsoq in 2013; own VMS or NAN for discovery upside potential. Slide 17

18 NAN - TSX.V Maniitsoq Ni-Cu-Co-PGM Project South West Greenland QUICK FACTS Acquired the Sudbury sized Maniitsoq property in Greenland in August, 2011; 100% owned. Site of the world s largest impact structure High-grade nickel intercepts in historic drill holes: 9.85 m at 2.67% Ni and 0.60% Cu at Imiak Hill m averaging 2.24% Ni and 0.63% Cu at Fossilik 2012 Drill program completed at Maniitsoq. 1,550 m of diamond drilling; 535 samples analyzed. CAPITAL STRUCTURE (as at February, 2013) Issued & Outstanding: 80,660,193 Warrants: 22,960,000 Options: 7,683,000 Fully Diluted: 111,303,193 Over 3,500 line km flown in a VTEM Plus survey in July, 2012; 75 conductive zones identified Sudbury Ontario land position includes the Post Creek, Halcyon and Wahnapitae properties. VMS Ventures owns ~21M shares of NAN. Slide 18

19 Project Location Maniitsoq Ni Cu Co PGM Project Introduction South West Greenland 100% interest in a giant property covering 4,983 km 2 of the highly prospective, but underexplored, Maniitsoq Impact structure. Located on the south west coast of Greenland pack ice free all year round due to the presence of the Irminger Current, a tributary of the Gulf Stream. Slide 19

20 Maniitsoq Ni Cu Co PGM Project South West Greenland Introduction 100% ownership of tenements covering the Maniitsoq meteorite impact structure. High grade and tenor sulphide hosted Ni Cu Co PGM mineralisation defined at the surface and along the length of the structure. Located on the ice free southwest coast of Greenland, deep water navigable by Panamax vessels all year round. The best location in Greenland for all year round mining & shipping of concentrate. Greenland s capital, Nuuk, 30 minutes by helicopter and provides European standard coastal re supply and logistics facilities 4hrs shipping time. Greenland is a pro mining country. Slide 20

21 Maniitsoq Ni Cu Co PGM Project South West Greenland Project History MANIITSOQ IMPACT MELT ZONE (APPROX.) Danish explorers 1962 to 1973: extensive mapping and shallow diamond drilling but wrongly orientated, smoke but no fire. Cominco & Falconbridge: 1993 to 2000 fixed wing (non optimal) and small surface EM surveys completed plus extensive high quality geo chemical analysis of historical core NAN acquires project reviews historical data and then conducts first terrain hugging helicopter borne EM survey: 25 new conductors identified. Davis Strait 2012 Geological Survey of Denmark and Greenland et al identifies Maniitsoq meteorite impact site within NAN s tenements. Maniitsoq impact interpreted to be larger than the impact that produced the Sudbury Basin in Ontario, Canada, a meteorite impact structure with >1.3Bt of Ni Cu Co PGM mined and current resources. Slide 21

22 Maniitsoq Ni Cu Co PGM Project South West Greenland Project Geology MANIITSOQ IMPACT MELT ZONE (APPROX.) GREENLAND NORITE BELT Centred on a giant, Archean age (~3.0 Ga) impact site possibly the largest yet identified on Earth (Garde et al., 2012*). Ni Cu Co PGM mineralization (red stars on adjacent map) is hosted by norite intrusions (shown in purple on the map). These intrusions represent contaminated, mantle derived, nickel rich, ultramafic magma emplaced in a conduit system as a result of the impact. Norites are post kinematic (i.e. undeformed) and commonly contain exotic inclusions (xenoliths) of shocked gneissic country rock confirming that they were emplaced after the impact in a dynamic flow system. Davis Strait Norite intrusions range in size from several square meters to 8 km2 and are concentrated in, but not exclusive to, a 75 km long by 15 km wide belt known as the Greenland Norite Belt. *Garde, A.A., McDonald, I., Dyck, B. & Keulen, N. 2012: Searching for giant, ancient impact structures on Earth: the Meso archaean Maniitsoq structure, West Greenland. Earth and Planetary Science Letters , Slide 22

23 Maniitsoq Ni Cu Co PGM Project South West Greenland 2012: The Confirmation & Discovery Year at Maniitsoq NAN identifies an additional 54 new EM conductors; 79 detected to date. MANIITSOQ IMPACT MELT ZONE (APPROX.) Discovers new sulphide mineralisation at Spotty Hill: 1.00% Ni eq* including 2.12% Ni eq* Confirms exploration model by successful drilling at Imiak Hill: 1.18% Ni eq* including 1.60% Ni eq* Discovery of PGM mineralisation at Spotty Hill, the Maniitsoq game changer Davis Strait Established institutional investor support via non brokered private placement with strategic partner The Sentient Group Ni eq = Ni equivalent calculated based on spot prices for Ni, Cu, Co, * Pd and Pt on Jan. 27, Slide 23

24 Maniitsoq Ni Cu Co PGM Project South West Greenland 2012: Spotty Hill Discovery Drill Results Cross section of 2012 EM plates, historical & NAN drill results at Spotty Hill Highlights from Spotty Hill discovery hole MQ % Ni, 0.21% Cu, 0.03% Co, 0.26g/t PGM* Incl % Ni, 0.34% Cu, 0.06% Co, 0.52 g/t PGM Incl % Ni, 0.21% Cu, 0.07% Co, 0.60 g/t PGM Significant 2012 Drill intersections from Spotty Hill OPEN Slide 24

25 Maniitsoq Ni Cu Co PGM Project South West Greenland 2012: Imiak Hill Confirmation Drill Results Longitudinal section of EM plates, historical & NAN drill results at Imiak Hill Significant 2012 Drill intersections from Imiak Hill Deepest intersection on trend Slide 25

26 MANIITSOQ IMPACT MELT ZONE (APPROX.) Davis Strait Slide 26 Maniitsoq Ni Cu Co PGM Project South West Greenland Plans for 2013 Exploration Plans for 2013/2014 Diamond Drilling To expand mineralized zones along strike and down dip at Spotty and Imiak Hill sulphide loads and test numerous other VTEM conductors. Helicopter TEM Surveys To cover several showings and ultramafic intrusions not previously flown. Induced Polarization Surveys To delineated disseminated sulphide mineralization at Spotty, Imiak Hill and other showings. Field Mapping and Sampling To ground truth and sample VTEM anomalies and zones of disseminated mineralization exposed on surface. Other Studies Mineralogical, petrogaphic and preliminary metallurgical (QEMScan) evaluation of Maniitsoq sulphides and host rocks. Initiate environmental scoping plan in preparation for future environmental baseline studies. Slide 26

27 World Class Nickel Investor Risk Mitigation Maniitsoq Ni Cu Co PGM Project Potential South West Greenland 100% ownership; district-scale land package (>Sudbury) Pub Co management/financing experience/sentient Group Technical team is deep Secure political jurisdiction and no land claims issues Accessible, along year-round pack ice free coast line Historic exploration data is remarkable ($10M plus) Geology Abundance of Ni-Cu occurrences at surface & in drilling High Nickel Tenor consistent and economic grade Major, long lived structures Large-scale mafic igneous event associated with giant impact New technologies in old camp work 75 EM anomalies Slide 27