The Reed copper project is right on schedule
Construction is progressing well, with first production expected by late 2013, said John Roozendaal, president of VMS Ventures
1 of 4A crew goes to work in a ventilation raise at the Reed copper project. — Photo courtesy VMS Ventures Inc.2 of 4VMS Ventures' president, John Roo
1 of 4A crew goes to work in a ventilation raise at the Reed copper project. — Photo courtesy VMS Ventures Inc.
2 of 4VMS Ventures' president, John Roozendaal, looks at the discovery drill core for the first time on the night of the Reed copper discovery. — Photo courtesy VMS Ventures Inc.
3 of 4This is a sample of the high-grade copper in a drill core (10.5 m grading over 11% Cu) from the Reed copper discovery hole. — Photo courtesy VMS Ventures Inc.
4 of 4A ramp cover is Installed at Reed. — Photo courtesy VMS Ventures Inc.
The Reed copper project is a high-grade copper deposit located in Manitoba's Flin Flon Greenstone Belt. Hudbay Minerals, which has a 70 per cent interest in the project, is exploring the deposit in partnership with VMS Ventures Inc. The project received the Hudbay board's approval to proceed to full construction in December 2011, with first production expected by late 2013.
John Roozendaal, founder and president of VMS Ventures, is extremely pleased about the progress they have achieved so far.
"We are at a very exciting point," said Roozendaal. "We began the project a little over a year ago and it has progressed at a fantastic pace for a mining project—with great credit to Hudbay Minerals and their technical team. Right now, as we speak, the actual development ramp is ramping down to approximately 500 metres in a spiral at a 15 per cent grade. It's down about 500 metres of lateral development, so the spiral itself is about 500 metres long. By the time that spiral is done, it will be about 3.5 to four kilometres long."
During the first quarter, Hudbay's focus for the Reed copper project was advancing the underground ramp and sinking the escape and ventilation raises from the surface. Of Hudbay's $72-million capital construction budget, the company has invested about $37 million on the project to March 31, 2013, and has entered into an additional $13 million in commitments. Capital expenditures at Reed are expected to total aroud $44 million in 2013.
Roozendaal said they've made some tremendous progress on the project and have also developed a few new techniques along the way. And, he added, he's proud that they've managed to keep the project so close to budget and right on schedule—not to mention the notable efforts to minimize Reed's footprint.
"We're also very proud that Hudbay has gone through tremendous efforts to keep the footprint of the mine area and the project to an absolute minimum," he said. "It's got a tiny footprint on the earth's surface, and when we're done with it, it will have almost no footprint whatsoever—which is an amazing feat."
Roozendaal said this is possible because it's come with great fortune that the deposit happens to be so close to the surface. This has allowed them to use a ramp to dig down as opposed to having to install a big shaft. It also helps that the Reed copper project is located just 100 metres off a paved highway. All the rock they take out either goes back underground where it came from or straight to Flin Flon by truck to be processed, leaving no rock behind on the surface.
"Also, everything there is portable," said Roozendaal, "so when we're done, all the buildings are removed, the ground is seeded with trees again and on we go. And the benefit to society is almost a billion dollars' worth of copper that will be pulled out of the ground. The lives of about 70 families are affected because of their direct employment there. It will also benefit the tax base in Manitoba, which is highly dependent on mining and will have another source of revenue. It's really positive all the way around. We can't have the lives we have today without copper."
Initial production is still expected to start in the fourth quarter of 2013 with full production planned for a year from now.
"I'm so excited to see the mineralization for the first time in something other than a two-inch-diameter core—like, (to) actually be able to stand there and see it come out of the ground," said Roozendaal. "It's a very high-grade copper deposit and I'm really looking forward to turning that rock into money for our company. It's nice to see it come full circle from the first day we discovered it to actually seeing the ore come out of the ground. It will complete a circle few geologists get to witness."
