Hudbay and VMS Ventures open the Reed copper mine

This northern Manitoba site has copper reserves estimated at $800 million and is located in Grass River Provincial Park.

by Jessica Kirby
Reed copper mine

A grand opening ceremony was held September 16, 2014, at the Reed Lake site. — photo courtesy VMS Ventures

VMS Ventures, based in Vancouver, B.C., held the grand opening in September for its first mine in northern Manitoba. With copper reserves estimated at $800 million, the Reed copper mine is located in the Grass River Provincial Park and represents a joint venture between Hudbay and VMS Ventures.

Junior exploration company VMS discovered the massive sulphide mineralization at Reed Lake exactly seven years ago this past September. The company owns 30 per cent of the project, which guarantees VMS a steady cash income as it expands its exploration efforts in Canada and overseas.

VMS officially reached commercial production in the beginning of April. The actual development of the mine has been amazing, said president and CEO John Roozendaal.

“The work Hudbay has done led the charge,” said Roozendaal. “It broke ground in March 2012 and by summer 2013 had mined its first tonne in a bulk sample.”

The Reed copper mine holds a high-grade deposit at almost four per cent copper along with gold, zinc and silver.

Advantages of the location

VMS had an additional advantage because the location is close to Flin Flon and an 80-year-old existing camp. It is also located 100 metres from a paved highway, where all-weather ore trucks are already travelling.

“We take our blessings where we can,” said Roozendaal. “This area has all the right things going for it and the big thing now is how much more can we find.”

VMS Ventures is spending $700,000 over the winter to explore the Greenstone Belt and area immediately around the Reed copper mine. Over the next 18 months, the company aims to seek out expansion and underground opportunities.

According to the Government of Manitoba, the Greenstone Belt is the richest in the world acre for its size.

“Half of the known belt is covered over with thin, younger rock and that is where we made the discovery—under 20 metres of young rock,” said Roozendaal. “The belt has been in production 80 years, but had impediments. We demonstrated we can make discoveries underneath the rock using VTEM (versatile time domain electromagnetic system) helicopter exploration.”

The technology, which was the company’s main and most important tool, is a geophysical system designed to look at the conductive bodies lying under rock in a particular area. Helicopters equipped with VTEM technology can fly low and slow, using a computer and GPS to track the results.

“That technology provided us a big advantage,” he said.

The mine’s development and grand opening has occurred largely without incident or challenge, said Roozendaal.

“Basically we have been fortunate,” he said. “We came into production on time and on budget and have had 800 days without a lost-time accident. That’s a pitch why people should support mining in Canada. All the rock goes to the mill in Flin Flon or it stays underground. The footprint is the size of a shopping mall and when we’re done, it will go back to rocks, trees and forest.

“It is an ecologically friendly industrial development and a great workplace for employees. It is a modern facility that operates like mining should be done.”

 

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