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VMS:TSX.V San Francisco Hard Assets Investment Conference November, 2010 Discovering High Grade Copper Deposits in Manitoba, Canada

VMS November Presentation

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Page 1: VMS November Presentation

VMS:TSX.VSan Francisco Hard Assets

Investment Conference

November, 2010

Discovering High Grade Copper Deposits in Manitoba, Canada

Page 2: VMS November Presentation

FORWARD-LOOKING STATEMENTS

NOTE:

Some of the statements contained herein may be forward-lookingstatements which involve known and unknown risks and uncertainties.Without limitation, statements regarding potential mineralization andresources, exploration results, and future plans and objectives of theCompany are forward-looking statements that involve various risks. Thefollowing are important factors that could cause the Company’s actualresults to differ materially from those expressed or implied by suchforward-looking statements: changes in the world wide price of mineralcommodities, general market conditions, risks inherent in mineralexploration, risks associated with development, construction and miningoperations, the uncertainty of future profitability and the uncertainty ofaccess to additional capital. There can be no assurance that forward-lookingstatements will prove to be accurate as actual results and futureevents may differ materially from those anticipated in such statements.VMS Ventures Inc. undertakes no obligation to update such forward-lookingstatements if circumstances or management’s estimates or opinionsshould change. The reader is cautioned not to place undue reliance onsuch forward-looking statements.

Page 3: VMS November Presentation

Introduction to VMS Ventures Inc. Flin Flon – Snow Lake Belt - a World Class VMS Camp

• Our First Discovery – The Reed Lake Deposit• HudBay Minerals JV and 4 Option Agreements• Phase 1 drill program at Reed Lake• Additional targets…next 2 years

Sails Lake Project – drilling in October2010 – 2011 Work PlanNorth American Nickel – 45% VMS ownership

Discovering High Grade Copper Deposits in Manitoba, Canada

Page 4: VMS November Presentation

VMS VENTURES INC.

CAPITAL STRUCTURE(as at November 15, 2010)

Issued & Outstanding: 114,717,955Options: 11,138,800Fully Diluted: 125,856,755

Well funded junior with approximately $13 M in the treasury.

2007 Discovered the Copper-rich Reed Lake Deposit in Manitoba, Canada.

• JV Partner HudBay Minerals (T.HBM) is project operator and financiers of Reed Lake development. Project ownership is 70% HBM & 30% VMS.

2010 Reed Lake Budget $3 Million, 7,000 metre drill Program now underway.

Large, 100% held, highly prospective land package in the prolific Flin Flon – Snow Lake Greenstone Belt of Manitoba.

4 Properties slated for drilling in 2010-2011.

QUICK FACTS

Page 5: VMS November Presentation

FLIN FLON GREENSTONE BELT

• Largest Proterozoic VMS District in the world.

• Most prolific greenstone belt in Canada in terms of $ value of production/km2.

• Continuous production for past 80 years

• 183 million tonnes from 27 mines.

• VMS mines/deposits rich in copper, zinc, gold and silver.

• Deposits typically occur in clusters.

• Gold mines/deposits throughout belt.

MAP AREAA WORLD CLASS VMS CAMP

SNOW LAKE BELTSNOW LAKE BELT

Lalor Lake(Hudbay)Lalor Lake(Hudbay)

Reed Lake(VMS Ventures Inc.)Reed Lake(VMS Ventures Inc.)

Page 6: VMS November Presentation

DISCOVERY PROGRESSION

• Early discoveries were made by prospecting.

• Recent discoveries made through a combination of geological and geophysical work.

• In addition to geology and geophysics VMS also employs cutting edge Mobile Metal Ion (MMI) geo-chemistry, which is particularly useful in the search for deposits beneath Phanerozoic cover.

After K. Gilmore (Hudbay Minerals), 2009

Page 7: VMS November Presentation

VTEM AIRBORNE GEOPHYSICAL COVERAGE OVERSNOW LAKE, MANITOBA PROJECTS

• Many recent discoveries, including VMS’s Reed Lake Deposit, were made with VTEM

• VMS Ventures has flown over 13,000 line-km of VTEM over its projects, majority flown at 100 m line spacing.

• 3 years and $3 million in work –ready to drill.

Page 8: VMS November Presentation

REED LAKE DISCOVERY

• Discovery hole by VMS Ventures Inc. RD-07-07 October 4, 2007:

43.05 m @ 4.38% Cu 1.56% Zn0.85 g/t Au

13.09 g/t Ag• 72 holes drilled from July, 2007 to

September, 2008.High Grade Cu Intercepts

RD-08-53: 61.96 m @ 5.96% Cu RD-08-61: 100.19 m @ 3.59% Cu

RD-08-41: 33.46 m @ 10.36% CuIncl. 28.08 m @ 13.03% CuIncl. 5.00 m @ 16.30% Cu

History

RD-08-36: 81.07 m @ 3.54% Cu

Page 9: VMS November Presentation

VMS VENTURES – HUDBAY JV & OPTIONS PROJECTS

VMS-Hudbay JV• 30-70 joint venture, VMS

carried to production.• Hudbay is operator.

4 Option Agreements• Hudbay is operator.• $2.6 M in cumulative

expenditures to earn 70%.• Upon discovery VMS is

carried on first $50 million of expenditures.

• Cumulative $2.8 M paid to VMS in July, 2010.

Page 10: VMS November Presentation

AERIAL VIEW OF THE REED LAKE DEPOSIT

Provincial Road # 39

Tower Zone Option

Reed Lake Joint Venture

Snow Lake 75 kmReed Lake Deposit(projected to surface)

Flin Flon 115 km

Page 11: VMS November Presentation

REED LAKE DEPOSIT GEOLOGY PLAN MAP

Rhyolite flowsRhyolite tuff

Basalt flows

QFP

A lens (Cu-rich)A

B

C

B lens (breccia)

C lens (Zn-rich)

Page 12: VMS November Presentation

HUDBAY PHASE 1 PLAN

N

Purpose:• Confirm / refine current model.• Produce NI 43-101 compliant

resource calculation.• Follow mineralization to depth.

Proposed Phase 1 Program:

Plan

CompositeCross SectionSection(Looking 315°)

100 m

100 mCredit: HBED September, 2010

• Drill 20 to 24 holes totaling 7 km on six section lines 50 m apart.

• Down hole 3-component EM surveys.

• Commence with one drill, ramp up to two drills once deposit geometry is confirmed. Possibly add a third drill to resurvey and cement previously drilled holes if required.

Page 13: VMS November Presentation

REED LAKE PHASE 1 RESULTS TO DATE

• Drill Hole 1. 9.90 metres grading 5.56% Copper • Drill Hole 2. 38.55 metres grading 3.81% Copper• Drill Hole 3. 71.69 metres grading 6.69% Copper

• Drill Hole 4. 21.77 metres grading 3.74% Copper

16 more drill holes to be released in the first phase of drilling at Reed Lake by HudBay Minerals.

Page 14: VMS November Presentation

REED LAKE: HOW BIG CAN IT GET?

• Reed Lake Deposit produces strong, coincident VTEM EM and magnetic anomalies.

• Magnetic data suggest the deposit plunges northwest.

• VTEM EM anomalies do not follow magnetic anomaly along the interpreted plunge line, however; this is to be expected as steeply plunging mineralization would quickly exceed the vertical detection limit (~300 m) of the VTEM system.

• Reed Lake Deposit produces strong, coincident VTEM EM and magnetic anomalies.

• Magnetic data suggest the deposit plunges northwest.

• VTEM EM anomalies do not follow magnetic anomaly along the interpreted plunge line, however; this is to be expected as steeply plunging mineralization would quickly exceed the vertical detection limit (~300 m) of the VTEM system.

REED LAKEJOINT

VENTURE REEDLAKE

PROJECT

NORTHWESTZONE

OPTION

SUPER ZONEOPTION

NORTHEASTZONE OPTION

TOWER ZONEOPTION

REED LAKE DEPOSITREED LAKE DEPOSIT

Plunge ?Lens C

Lens ALens A

Page 15: VMS November Presentation

ORE BODIES TEND TO GROW IN THE FLIN FLON BELT

After K. Gilmore (Hudbay Minerals), 2007

Page 16: VMS November Presentation

SAILS LAKE: DRILLING IN OCTOBER / 2010

SAILS LAKESAILS LAKE• 25 km east of Snow

Lake.

• Previously believed to be underlain by less prospective ocean floor rocks.

• Recent mapping and litho-geochemical sampling by VMS showed that it is in fact underlain by prospective juvenile arc rocks.

25 kmProject Background

Page 17: VMS November Presentation

2010-2012 WORK PLAN

Q3 Q4Reed Lake ProjectDrillingDrill ResultsMetallurgical StudiesGeotechnical StudiesResource EstimateDelineation DrillingPrefeasibility Study WorkSails Lake ProjectGeophysics Drill Permitting Target Selection Drilling Drill ResultsProject EvaluationCopper ProjectGeophysics Target SelectionDrillingDrill Results Project EvaluationMorton Lake ProjectGeophysics Target SelectionDrillingDrill ResultsProject EvaluationLeak Lake ProjectGeophysics Target SelectionDrillingDrill ResultsProject EvaluationMcClarty Lake ProjectGeophysics Target SelectionDrillingDrill ResultsProject EvaluationPuella Bay ProjectGeophysics Target SelectionDrillingDrill ResultsGeochemical SurveysProject Evaluation

Q42011 2012

Q1 Q2 Q4 Q1Q3 Q22010

Q3

Page 18: VMS November Presentation

NORTH AMERICAN NICKEL

VMS owns ~45% of North American Nickel.

Dr. Mark Fedikow, President and COO.

TSX Venture application pending.

Projects situated in Thompson and Sudbury, the two most productive mining camps in the world class Circum-Superior Nickel Belt.

OTCBB: WSCRFWSCRF: OTCBB

Page 19: VMS November Presentation

VMS VENTURES INC.

CAPITAL STRUCTURE(as at November 15, 2010)

Issued & Outstanding: 114,717,955Options: 11,138,800Fully Diluted: 125,856,755

Well funded junior with approximately $13 M in the treasury.

Discovered the Cu-rich Reed Lake Deposit in Manitoba in 2007.

• JV Partner HudBay Minerals (T.HBM) is project operator and financiers of Reed Lake development. Project ownership is 70% HBM & 30% VMS.

2010 Reed Lake Budget $3 Million, 7,000 metre drill Program now underway.

Large, highly prospective land package in the prolific Flin Flon – Snow Lake Greenstone Belt of Manitoba.

4 Properties slated for drilling in 2010-2011.

QUICK FACTS