News Column

VMS Ventures Inc.: Potential for High Nickel Recoveries at Imiak and Spotty Hill on North American Nickel's Maniitsoq Project Based on Qemscan Mineralogical Analyses

Page 2 of 1

Tracker

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/11/13 -- VMS Ventures Inc. (TSX VENTURE: VMS) ("VMS Ventures" or the "Company") is pleased to announce that North American Nickel Inc. (TSX VENTURE: NAN) ("North American Nickel" or "NAN"), issued a press release this morning announcing the results of QEMSCAN mineralogical analyses. VMS owns approximately 27.5% of NAN. The release is as follows:

"North American Nickel is pleased to announce that it has received a report on the results of mineralogical studies performed by SGS Canada Inc. ("SGS") on three samples of mineralized drill core selected by NAN from NAN's 100% owned Maniitsoq Ni-Cu-Co-PGE sulphide project in southwest Greenland. Two of the samples came from the Imiak Hill zone and one from the Spotty Hill zone.

The objectives of the study were to identify and quantify the nickel, copper and cobalt-bearing minerals within the samples and to determine the liberation and association characteristics of the nickel and copper sulphides. A copy of the report is posted on the NAN website (http://northamericannickel.com/files/doc_downloads/14021-001%20NA%20Nickel%205010-APR13%20Final%20Mineralogical%20Report.pdf). Highlights and selected results are presented below.

John Pattison, North American Nickel's Chief Geologist states: "QEMSCAN is a new technology that gives us a detailed picture of the mineralogy of our sulphide mineralization and host rocks and how it might affect the metallurgy in a mining/processing scenario. At this early stage of exploration it is very helpful for management and investors to know that, based on the mineralogical characteristics of the samples analyzed, there is potential for high nickel recoveries from both the Imiak and Spotty Hill zones."

QEMSCAN REPORT HIGHLIGHTS

-- All three samples show high potential nickel recovery. Mineralogically limiting grade-recovery curves indicate maximum potential nickel grades of 35% at recoveries of 84 to 87%.-- Pentlandite is the main nickel-bearing mineral and it contains 95.5 to 96.3% of all the nickel in the samples. Silicate hosted nickel comprises less than 1% of all the nickel.-- Pentlandite P80 grain sizes range from 53 to 65 um.-- Total potentially floatable pentlandite ranges from 96.3 to 97.6%.-- All copper is hosted by chalcopyrite. Chalcopyrite P80 grain sizes range from 30 to 40 um.-- Potential recoveries for copper are variable across the samples. Mineralogically limiting grade-recovery curves indicate maximum potential copper grades of 34% at recoveries of 52 to 77%.-- Total potentially floatable chalcopyrite ranges from 87.1 to 95.4%.-- Pentlandite and pyrite are the main hosts of the cobalt in the samples.



KEY RESULTS

Modal Analysis

The modal analyses (in wt%) for the three samples are listed in Table 1. All three contain significant quantities of pyrrhotite and pentlandite (8.2 to 12.3%). Amphibole is the dominant silicate mineral in samples from Imiak Hill (L163163 and L163164) while orthopyroxene is the main silicate mineral in the sample from Spotty Hill (L163593).

To view "Table 1: Bulk Modal Analysis of Samples", please visit the following link: http://media3.marketwire.com/docs/611vms_tab1.jpg.

Nickel, Copper and Cobalt Deportment

For the three samples, pentlandite contains 95.5 to 96.3% of the overall nickel in the sample while pyrrhotite hosts 2.7 to 4.0% and pyrite 0.02 to 0.17%. The silicate minerals (ortho- and clinopyroxene, amphibole and biotite / phlogopite) account for just 0.50 to 0.91% of the total nickel.

The copper in all three samples is contained entirely within chalcopyrite.

Cobalt is mainly contained within pentlandite (89.4%) in sample L163163 but in samples L163164 and L163593 it is split about evenly between pentlandite (45.4 to 54%) and pyrite (46 to 54.6%).

Grain Size

The P80s (80% passing criteria, represents the particle or mineral grain size at which 80% is finer than this value) of the minerals and overall particles are presented in Table 2.

To view "Table 2: P80s of Minerals Calculated by QEMSCAN (by mass).", please visit the following link: http://media3.marketwire.com/docs/611vms_tab2.jpg.

Liberation Characteristics of Pentlandite and Chalcopyrite

In QEMSCAN liberation analysis, particles are classified into the following categories based on the exposed 2D surface area of the mineral-of-interest in percent:

Free = greater than 95% surface area exposure of pentlandite (Pn) or chalcopyrite (Cpy).Liberated = greater than 80 surface area exposure of Pn or Cpy.Non-Liberated but Pn (or Cpy) with other mineral(s) combined show greater Floatable = than 95% surface area exposure, where Pn (or Cpy) shows greater than 20% surface area exposure.Not Floatable = Pn (or Cpy) with greater than 20% surface area exposure combined with two or more other mineral groups or Pn (or Cpy) surface exposure is less than 20%.



The predicted flotation characteristics for pentlandite and chalcopyrite are summarized in tables 3 and 4, respectively. Total potentially floatable pentlandite ranges from 96.3 to 97.6% and total potentially floatable chalcopyrite ranges from 87.1 to 95.4%.

To view "Table 3: Prediction of Flotation Characteristics of Pentlandite.", please visit the following link: http://media3.marketwire.com/docs/611vms_tab3.jpg.

To view "Table 4: Prediction of Flotation Characteristics of Chalcopyrite", please visit the following link: http://media3.marketwire.com/docs/611vms_tab4.jpg.

Grade-Recovery Analyses

Mineralogically limiting grade-recovery analyses provide an indication of the theoretical maximum achievable elemental grade by recovery, based on the calculated mass of minerals and the total mass in each liberation category (individual particle liberation and grade). It is important to note that these results do not reflect any other physical factors (or flotation reagent kinetics) that could occur in the actual metallurgical process, such as possible fine-grained (less than 10 um) sulphide and/or gangue entrainment (diluents) or very fine sulphide intergrowths on liberated grains that would make selective flotation difficult. Therefore, predicted results show much higher grade-recovery relationships than are actually achievable from the process. Nevertheless they do provide an indication of the potential nickel and copper recoveries. The mineralogically limiting grade-recovery curves for nickel and copper are presented in figures 1 and 2.

All three samples show remarkably consistent high predicted recoveries for nickel. For sample L163163, the grade-recovery curve indicates the maximum possible Ni grade is approximately 35% at a recovery of 86%. For L163164, the maximum possible Ni grade is approximately 35% at a recovery of 87%. For L163593 the maximum possible Ni grade is approximately 35% at a recovery of 84%.

For sample L163593, from the Spotty Hill zone, the maximum possible copper grade is approximately 34% at a Cu recovery of 72%.

Despite the fact samples L163163 and L163164 both come from the Imiak Hill zone and are contiguous samples in the same hole, their grade-recovery curves differ considerably. The curve for sample L163163 indicates the maximum possible Cu grade is approximately 34% at a Cu recovery of 52%. For L163164 the maximum possible Cu grade is approximately 34% at a Cu recovery of 77%.

Further study is required, but the relatively poor indicated recovery for sample L163163 may, at least in part, be related to the fact that of the three samples this one has the least amount of chalcopyrite.

To view "Figure 1: Predicted Nickel Grade vs. Recovery", please visit the following link: http://media3.marketwire.com/docs/611vms_graph1.jpg.

To view "Figure 2: Predicted Copper Grade vs. Recovery", please visit the following link: http://media3.marketwire.com/docs/611vms_graph2.jpg.

BACKGROUND AND METHODOLOGY

NAN submitted the three drill core samples listed in Table 5 to SGS's Lakefield Advanced Mineralogy Facility for QEMSCAN mineralogical analysis. Two samples (L163163 and L163164) came from hole MQ-12-001, which was drilled on the Imiak Hill zone, and one sample (L163593) came from hole MQ-12-005, which tested the Spotty Hill Zone. Both holes were drilled in 2012 by NAN. The Imiak and Spotty Hill showings are located within 1.5 km of each other in the northern part of the Greenland norite belt on mineral exploration licence 2011/54 belonging to NAN.

To view "Table 5: Samples used in the study (assay results are from analyses performed by Activation Laboratories Ltd. in 2012).", please visit the following link: http://media3.marketwire.com/docs/611vms_tab5.jpg.

SGS stage-ground the samples to 90% passing 150 um (approx. 80% passing 106 um) and prepared a graphite-impregnated polished section from a sub-sample of each sample. The polished sections were then analysed by QEMSCAN.

QEMSCAN is an acronym for Quantitative Evaluation of Materials by Scanning Electron Microscopy. It is an automated system that is configured to measure mineralogical variability based on chemistry at the micrometer-scale. QEMSCAN utilizes both the back-scattered electron (BSE) signal intensity as well as an Energy Dispersive X-ray (EDS) signal at each measurement point. EDS x-ray counts or spectra are used to assign mineral identities to each measurement point by comparing against a known mineral species identification program (SIP) or database. Mineral speciation, quantitative modal abundance and elemental deportment can be determined. Textural information such as core mapping, particle and mineral grain size and shape, mineral liberation, mineral associations, porosity, and matrix density can be captured and reported numerically and graphically.

Qualified Person

All technical information in this release has been reviewed by Dr. Mark Fedikow, P.Geo, who is the Qualified Person for the Company and President, North American Nickel Inc."

About VMS Ventures Inc:

VMS Ventures Inc. is focused primarily on acquiring, exploring and developing copper-zinc-gold-silver massive sulphide deposits in the Flin Flon-Snow Lake VMS Belt of Manitoba. The Company's VMS project property portfolio consists of the Reed Copper Project, which is subject to a 70-30 JV with HudBay Minerals and, subject to receipt of required permits, is scheduled for production in Q4-2013, Copper Project, McClarty Lake Project, Sails Lake Project, Puella Bay Project and Morton Lake Project. Outside of the Snow Lake camp, the Company holds massive sulphide prospective properties near the past producing Fox Lake and Ruttan copper-zinc mines, near the communities of Lynn Lake and Leaf Rapids in northern Manitoba. These properties are located in the mining friendly province of Manitoba, Canada. The Company also has optioned the Black Creek property in the Sudbury mining camp.

VMS Ventures owns approximately 27.5% of North American Nickel Inc. (TSX VENTURE: NAN). For more information on North American Nickel Inc., please visit www.northamericannickel.com.

Forward Looking Statement

Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding the costs, plans and schedule to develop the Reed Copper Project, 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.

ON BEHALF OF THE BOARD OF DIRECTORS

John Roozendaal, B.Sc., President

VMS Ventures Inc.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.



Contacts:
VMS Ventures Inc.
Evan Sleeman
Director
(604) 986-2020
Toll Free: 1-866-816-0118
www.vmsventures.com



Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters