VMS drills five holes, finds no copper at Copper

VMS Ventures Inc (C:VMS)
Shares Issued 114,017,955
Last Close 6/30/2010 $0.24
Friday July 02 2010 - News Release

Mr. John Roozendaal reports

FIRST DRILL PROGRAM AT THE COPPER PROJECT; SUMMER EXPLORATION PLANS FOR SNOW LAKE, MANITOBA PROPERTIES; DON WHALEN JOINS BOARD OF DIRECTORS

VMS Ventures Inc.'s first round of drilling at the Copper project has been completed, and no significant economic mineralization was intercepted in the five holes drilled. All geophysical targets were explained by the drill program, which intersected thick sections of conductive graphite-rich sedimentary rock units. The area of the first drill program is roughly two kilometres by three km, and is a small portion of the 35 km by 11 km Copper project.

This first drill program focused on targets that occur on the northeast section of the property in a geological environment dominated by chemical and clastic sedimentary rocks. In the Snow Lake area these rocks host zinc-rich base metal massive-sulphide-type deposits, but are not the typical volcanic host rocks to the copper-zinc deposits mined in the Flin Flon-Snow Lake camp.

Dr. Mark Fedikow, vice-president of exploration, stated, "Although the geophysical conductors identified in airborne surveys were explained, none of the targets were mineralized or significantly altered, as would be expected in a volcanogenic base metal massive-sulphide-type mineralizing system."

One of the results of this initial drill program is that the company has converted one of its mineral exploration licences within the project to claims covering untested geophysical anomalies located to the south of the recent drilling. This will reduce the holding cost of the land and allow previous work expenditures to be applied as assessment credits to the new claims. The Copper project is one of the largest land positions held by the company in the Flin Flon-Snow Lake greenstone belt and with the conversion of this MEL to claims the land size is reduced by approximately 12 per cent of its total area.

Upcoming exploration

This summer and fall VMS exploration programs will focus on areas underlain by volcanic rocks that occur beneath the younger Paleozoic dolomite cover. These volcanic rocks typically host the base metal deposits being targeted. Company geologists are reviewing historical drill hole data for evidence in drill hole geology to complement geophysical and geochemical survey information used to detect buried mineralization.

The company has several exploration programs planned. These include drilling, prospecting, geochemical survey sampling and ground truthing of prospective airborne geophysical targets.

Sails Lake

Airborne VTEM geophysical anomalies have been detected on the property. These anomalies are associated with known mineralization and host rocks typically associated with base metal massive-sulphide-type deposits in the area. A number of these anomalies have coincident mobile metal ion soil geochemical anomalies with them, and as such, will be the prime focus of drill testing in the upcoming program.

Plate modelling of airborne geophysical anomalies is complete and preliminary drill targets are defined. Historical results report both precious and base metal mineralization on the property. Precious metal results of surface gold samples in prospecting trenches report grab samples grading as high as 64.29 grams per tonne gold and 14.52 g/t Au. Targets indicative of gold mineralization such as fault-shear zone, or fold structures, alteration and soil geochemical signatures are still being evaluated.

Base metal occurrences in surface and drill core samples of copper-zinc mineralization include an intercept of 0.55 metre grading 7.2 per cent zinc, 0.12 per cent copper, 10.54 g/t silver and 0.34 g/t Au in a drill hole adjacent to one of the conductors planned for drill testing this summer, and elevated zinc values in stringer sulphide mineralization elsewhere on the same conductor.

Geologists are in the field through the first part of this summer, to re-examine the host rocks as to base and precious metal targets developed from the compilation of historical data. Several base metal targets are near final stages in their evaluations. The gold targets present a more difficult challenge, as this type of mineralization does not readily show itself in geophysical surveys and the property has only limited rock exposure on which to prospect this type of mineralization. Geologists will be looking closely at the soil geochemical survey results and their association with known gold occurrences on the property, to assist in locating gold mineralization buried under soil overburden.

Drilling at Sails Lake is expected in August, pending approval of permits.

The Sails Lake property is located approximately 10 kilometres east of the past-producing Osborne Lake copper-zinc-gold-silver deposit, and approximately 30 km east of the mining community of Snow Lake.

Morton Lake

A program consisting of ground truthing airborne geophysical targets and detailed mapping of mineralized trenches and favourable host rocks to base metal mineralization will be undertaken at the Morton Lake property. Mobile metal ion soil geochemical surveys will also be conducted over buried geophysical targets.

The property is underlain by felsic and mafic volcanic rocks that are similar in tectonic environment and chemistry to the host rocks for the past-producing Dickstone copper-zinc deposit.

The company has recently added to its land position to the east and south of the original Morton Lake claims and now has a land position roughly 20 km in length, covering mafic and felsic volcanic rocks similar to the rocks that host the Reed Lake discovery zone.

Leak Lake

Airborne VTEM anomalies have been identified on the property and subsequent mobile metal ion geochemical surveys completed over these conductors. The results of the two surveys are being merged to evaluate the targets for possible drill testing.

Puella East

Airborne VTEM surveys have been completed and anomalous responses analyzed by Condor Geophysics of Denver, Colo. The area is mostly covered by swamp and overburden, which precludes detailed geologic mapping. The property was mapped in 2009 on a reconnaissance scale and geophysical anomalies placed into their geologic context, where possible. A winter mobile metal ion survey will assess these conductors in terms of metal content in preparation for diamond drill testing.

Farwell Lake

Like the Puella East project, the Farwell Lake project area is overlain by wet organic overburden and postvolcanic dolomite cover. Airborne VTEM anomalies have been identified and mobile metal ions surveys recently completed. Samples have been submitted for analysis and results will be integrated with geophysics and historic geologic observations from previous exploration programs. Drill targets will be assigned on the basis of these integrated datasets.

Bill McWilliam has resigned as a director of VMS Ventures. VMS has thanked Mr. McWilliam for his services over the past three years, and wishes him well in his future endeavours. Donald Whalen will be taking Mr. McWilliam's place on the board of directors and will sit as an independent director and act as chair of the audit committee.

Mr. Whalen graduated with a bachelor of commerce degree from the University of Toronto in 1964, and is currently a self-employed consultant. He was executive vice-president of High River Gold Mines Ltd. from September to December, 2008; prior thereto, Mr. Whalen had been executive chairman and director of High River since June, 1992. Before joining High River, he held numerous marketing, technical and management positions over a 29-year career with IBM Canada Ltd. In addition, Mr. Whalen has been active in promoting Canadian-Russian business investment and trade relations, and, until 2008, held the position of chairman of the Canada Eurasia Russia Business Association (CERBA) and was co-chairman of the Canada Russia Business Council. Mr. Whalen is also director and chairman of the audit committee for Pancontinental Uranium Corp. and Roscan Minerals Corp.

All technical information in this release has been reviewed by Dr. Mark Fedikow, PGeo, who is the qualified person for the company and vice-president of exploration and technical services.

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