Dear VMS Followers,

I'm passing along a news report brought to my attention yesterday, entitled "HudBay could see 2012 output from Reed Lake project".

I have been out of town for twelve days, so I was very pleased to find this waiting for me. One of the key valuation issues for this project is time to production. We are very pleased that HudBay is considering such an aggressive timeline at Reed Lake.

Keith Patey, our Director of Communications and I will be at the Hard Assets Conference in San Francisco, November 21-22, 2010 in booth #202. The conference will be held at the Marriott Marquis hotel, located at 55 Fourth Street, San Francisco, CA. For more information, or to register to attend the conference, please visit www.iiconf.com. Greg Hill, President of Harvest Gold US will be with us at booth #202, as well.

Our entire technical team will be attending the Manitoba Mines and Minerals Convention November 18 - 20, 2010 at table P22. The Manitoba Mines and Minerals Convention is held at the Winnipeg Convention Centre. For more information, or to register to attend the conference, please visit http://www.gov.mb.ca/stem/mrd/minerals/convention/index.html.

If you are close to either event, please come and see us.

Best Regards,

Rick Mark
CEO, VMS Ventures Inc.

The following article is from the website: www.miningweekly.com

HudBay could see 2012 output from Reed Lake project
By: Liezel Hill
Published: 4th November 2010

TORONTO (miningweekly.com) - Canada's HudBay Minerals expects production could begin in 2012 from the Reed Lake project in Manitoba, CEO David Garofalo said on Thursday.

HudBay owns 70% of the project, located on the Flin Flon Greenstone belt, and junior VMS Ventures holds the balance. The company said on Wednesday it expects to make a production decision early next year.

"The deposit is very near surface, it would be accessed by ramp and we don't need to build any surface infrastructure because we will be using the existing capacity at our Flin Flon concentrator, which is a relatively short drive down the provincial highway," Garofalo said in an interview.

The project will likely run at somewhere between 1 000 t/d and 2 000 t/d, he said earlier on a conference call.

HudBay is already working on the larger Lalor project in Manitoba, where it expects production from an initial access ramp in 2012, building up to full production from a new shaft in 2014.

The Toronto-based company currently operates the the 777 mine, the Trout Lake mine, a concentrator, copper smelter and zinc plant at Flin Flon, as well as the Chisel North mine and a concentrator near Snow Lake, also in Manitoba.

Both Chisel and Trout Lake are mature operations, and are nearing the end of their operating lives, so the firm is moving quickly to develop Lalor, where it has discovered zinc, copper and gold mineralisation.

The firm is also studying whether it makes more economic sense to refurbish the existing concentrator at Snow Lake or to build a new concentrator at the Lalor mine site, and expects the results of the assessment by the end of this year.

To see the full article, please visit: http://www.miningweekly.com/print-version/hudbay-could-see-2012-output-from-reed-lake-project-2010-11-04